Being an entrepreneur and at the same time taking care of the environment does not have to be incompatible. There is increasing interest around the world in business alternatives that allow a good standard of living and be respectful with the environment. With these electric bikes you can travel between 30 and 40 kilometers without pedaling and they provide an average performance of 100 km per one kilowatt/hour. And of course, whenever you like, or when it runs out of battery, you can go back to pedaling. They are a good option in traffic; you move in less time and have financing plans, insurance for theft or accident, and also maintenance service every six months. Isn’t that a good vehicle option to work with if you need it? Whatever your answer, ebikes are a booming business commodity today, marked by the booming of wholesale electric bikes on the market, and will remain so for years to come.
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Ebike as the Future Transportation
The future of transportation is here, but even by the standards of new technologies, it is unevenly distributed. Self-driving cars – a long-promised revolution – are only available to hundreds of people in a handful of select places around the world. Meanwhile, electric bikes and scooters are becoming more ubiquitous in dozens of cities. It might seem ridiculous to put electric scooters in the same group as self-driving cars. But both are trying to solve many of the same problems: providing alternatives to traditional cars to reduce congestion and emissions. The difference is that they are approaching the problem in different ways, and only one of them is using the traditional Silicon Valley manual. It’s been a decade since Google started working on autonomous vehicles. The Google team, now called Waymo, has launched the first commercially available autonomous taxi service. It’s a real breakthrough, but it’s limited to the sunny suburban streets of Phoenix, Arizona. Despite continued promises from Tesla’s Elon Musk that autonomy is around the corner, much of the tech industry has become more pessimistic about the short-term prospects for robotaxis availability. Smaller companies are struggling to stay in business; a prominent company, Drive.ai, was sold to Apple last year. On the contrary, in the last two years, thousands of electric bicycles and scooters have appeared on the streets of Europe, North America, Asia and Latin America. One of the big players is Haidong bike.
Sharing Bikes
Imagine a network for sharing bikes. If you’re not using yours, why not earn money while someone else uses it? This is the philosophy of the American company Spinlister, which has a website that publishes a list of available bicycles that you can rent per day if you need it, or where you can also rent yours to earn some money. The company acts as an intermediary between the one who rents and the user who lends it for rent, with very specific rules of use. And in case they have to be repaired, it also manages the payments. In some countries, they have put in place municipal bicycle rental systems offering an economical and ecological transport system, which allows people to move without polluting the whole city and avoid, in turn, traffic congestion. Everything helps!
As we have already mentioned here, in recent years there has been a notable increase in the use of bicycles, thanks to concern for the environment and also to a greater interest on the part of people to do physical activity. The authorities have facilitated the use of bikes by placing more and more dedicated lanes in large cities, in addition to the famous public rental systems. The problem is that not all cities are flat, and even if they are, cycling requires some physical effort. Hence, electric vehicles have appeared on the market, which make cycling a real pleasure without effort. More and more electric bikes are seen, and other similar modes of transport (such as electric scooters).
But Electric Bikes Have two Drawbacks
The first is undoubtedly its price. They cost significantly more than a regular bike, and the models happily top $ 500 and up. Although like every product that is successful, the competition causes prices to be lowered and there is more supply. The second is that people who already have a normal bike don’t necessarily want to invest in an electric one. Because it would mean getting rid of the first one, and also because many of the electrics cannot be used as a regular bike, to go for a walk, to go on trails, pedaling normally. They are not designed for that.
A Change in the Bike Industry
The popularity of new technology and changes in the leisure market are forcing a change in an industry that grew during the crisis and now suffers from an oversupply. The bike market is experiencing a revolution with the arrival of electric models that assist pedaling. It is a technology that allows many people to get closer to the bike. And its impact is being felt in all sectors: People are not only looking for machines with assisted pedaling to go to work, but also to go out for a walk in the mountains. Today, 20% of sports bikes are already electric.
In addition to the expansion of the electric bike, there are other factors that explain why demand is not growing at the same strength as in recent years. With the higher disposable income and the growth of private consumption, bicycles and cycling have once again entered into competition with other leisure and sports options. This has triggered what is already revealed as an oversupply of stores and brands. But so far, there’s not a saturation of the market.
It must be borne in mind that the industry has come from leaving behind some extraordinary years. In absolute figures, last year more than 1.1 million bikes were sold in the country. The market is worth 1,623 million dollars, almost a quarter of the entire sports equipment sector and ahead of more popular sports such as football, basketball or tennis. In addition, public administrations are encouraging the use of bikes to promote sustainable mobility.
In the US, the sector is highly fragmented and more than 3,000 cycling shops and workshops are spread throughout the country. When the crisis, many people who had cycling as a hobby decided to open a store.
Profit Margins
The difficulties faced by small businesses come from two directions. On the one hand, competition is hurting profit margins. Of necessity, stores have had to enter into price and discount wars seeking their survival that, in many cases, is ending with business closings. Without really knowing why, everyone, salespeople and customers, is entering the game. Commonly, the customer expects a reduction from 10% to 15% from the start.
Adjust to Demand
But it is not the only factor that has prompted manufacturers to return. The productions are thinned to bring them closer to the continuous changes in demand preference. We have to be cautious and calculating in production so that the offer does not cause increases in discounts in stores.
In Spain, the industry employs more than 8,000 people, and although historically it is concentrated in the Basque Country (where it emerged as a complement to the small local metallurgical company, especially arms manufacturers), most of the firms (44%) are installed in Catalonia. The production of around 350,000 bicycles per year has been maintained, although highly concentrated in a handful of companies.
The sector is not in poor health and the prospects for the future are good. Those of us who really are out of conviction and with a desire to stay will be able to continue.
Technology for Mobility and Enjoyment
Technological innovations such as accelerometers, fat tires, and the interconnection with mobile applications contribute to the increase in the value of ebikes. Within the most recreational part of cycling, there is an increasingly popular trend that seeks to enjoy riding the bike and experience new sensations.
But where there is most potential is in urban mobility, and there the industry asks for a greater public impulse. The use of ebikes has grown notably where effective promotion and awareness measures have been combined with investments in safe cycling infrastructures segregated from motor traffic.
But the legislature in local administrations should have brought greater political courage from some administrations that, in principle, were more committed to promoting the ebike.
But the private ebike also has its place, and here the public administrations have work to do. If the big challenge is to get people out of their car and onto a bike, you have to think about how we do that. And a bike that is worth between 3,000 and 4,000 dollars cannot be left on a lamppost.
Ebikes are predicted to dominate the global bicycle industry in the next few years. If you are interested in jumping into this hot market, now is the time. Hope this article inspired you. Thanks for reading!
