The war in Ukraine continues to raise gasoline prices both in Europe and in the United States and has a direct impact on drivers’ pockets. A rise that affects even more thinking about the cost of journeys everyday life and long car trips. An unexpected winner has emerged from the situation: the electric bicycle. But for e-bike or electric scooter companies, the surge in interest has not resulted in the profits they hoped for.
The increase in gasoline prices is a double-edged sword.
sales boom. Companies are experiencing a sales boom as consumers turn to electric mobility, but their own rising transportation and materials costs have been a drag on profits. Rad Power Bikes CEO Mike Radenbaugh said that over the last month, 30% of customers have been looking to buy one due to rising gas prices and to replace the miles they put in on a daily basis.
“Maybe they knew about electric bikes, but now they’re finally getting on board,” he explained. Bird also saw a 30% increase in traffic to his website, where he sells e-bikes and electric scooters, in the weeks immediately following the initial increase in gas prices. And urban electric vehicle fleets increased their direct-to-consumer sales by 60% during that period.
The tendency. Outdoor retailers typically experience a sales spike in March, and electric bikes are no different. But rising gasoline prices shattered his projections. Retrospec, for example, saw a 200% increase in electric bike sales from February to March 2022. The founder of electric scooter retailer Fluidfreeride, Julian Fernau, claimed that he sold twice as many units in March than in February, and that March sales were 70% higher than the same month in 2021.
We are talking about records that exceed even the time of the pandemic.
But the costs also go up. Still, the higher sales don’t tell the full story for electric transit startups, whose costs are also significantly affected by gasoline prices. With an average price in Spain of 1.59 euros per liter and diesel at 1.613 euros, the increase in demand for the companies’ products will not necessarily change their final results.
“Energy prices don’t just drive consumers. They also affect our costs and spending at a time when our spending has never been more unpredictable and volatile. The supply chain environment is as hostile as it can be. And now this on top”, they warned from Restrospec. And it’s not just shipping costs that are running high at all ports of call. Rising aluminum and cobalt prices are also challenging companies’ efforts to keep their products affordable.
The motives. In recent weeks, gasoline and diesel have experienced significant growth and have reached historical highs. A rise that affects even more thinking about the cost of journeys everyday life and long car trips. To alleviate the consequences of the energy crisis, on Friday, April 1, the discount of 20 cents per liter decreed by the Government.
Other factors that may also be sparking consumer interest and driving sales to electric transportation during the summer is that employees who worked remotely are already returning to their workplaces. During the pandemic we saw a lot of exercise bike sales. Now, with the return to the office, they have gone out into the street again, where they have not found anything other than the most expensive gallon in history.
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