The electric bike market’s horizons are as vast as they are ever-changing. With micromobility’s explosive growth, some businesses are thriving while, unfortunately, others are collapsing.
Following VanMoof’s closure in July 2023, it’s now the turn of GLEAM Technologies GmbH, a prominent player in the electric cargo bike sector, to close its doors.
An Unforgiving Market
The Austrian company faced severe obstacles despite its significant presence over ten years. Its three-wheeled scooter, although robust and capable of carrying loads of up to 441 lbs (there was talk of a true electric utility bike), experienced declining sales.
Offering several configurations of electric cargo bikes, including 2 specifically designed for professionals, GLEAM faced a niche market. The initial cost of the scooter, starting at $7,553, may have also influenced this situation, especially considering many alternatives starting at $2,700 brand new.
For now, GLEAM’s asset future is uncertain. If there is no takeover, the remaining parts will be auctioned. The future of current clients is still a major concern. On the other hand, GLEAM is dedicated to providing as many user manuals as possible and is working on solutions for specific spare parts. To be continued…
One could be tempted to see GLEAM’s bankruptcy as a symptom of a wider crisis in the electric bike sector. However, it’s critical to contextualize. VanMoof has faced criticism for its strategy of selling at a loss. On the other hand, GLEAM focused on a very specific market segment and might have had a smaller audience.
Nevertheless, it’s important to note that France does not have an electric bike crisis. The record sales figures year after year prove this. However, tenacious competition and a profusion of players are making the landscape more competitive and pitiless at times.
A Glimmer of Hope?
Not everything is gloomy, despite the dismal news. The financial situation of Cowboy, for example, looks promising, with the prospect of profitability in Q3 2023. Overall, it appears that, despite competition, the electric bike industry still offers vast opportunities for those who can adapt, innovate, and respond to changing consumer needs.
Looking for an electric bike? Check out our ranking of the best electric bike brands.
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