Lectric eBikes co-founders Levi Conlow (left) and Robby Deziel.

Lectric eBikes co-founders Levi Conlow and Robby Deziel were childhood friends, and when they ventured into the booming world of electric bicycles in 2018, they had a primary problem: Don't let their first investor, Levi's father, go bankrupt. Three years later, they described the young startup as the fastest growing company in the electric bike market.  

These two 25-year-olds from Lakeville, Minnesota founded their company in Phoenix, intending to sell durable, high-quality electric bicycles directly to consumers for less than $1,000—heavier than the industry. Competitive models of are much lower, such as Trek, Giant and Yamaha as well as many other start-ups. CEO Conlow, who sold electric skateboards in college, is responsible for driving sales, while chief innovation officer Deziel will focus on designing and designing Lectric's first model.

“We entered this field because my old man wanted an electric bike, and the average price of an electric bike was about $3,000 at the time,” Conroe told Forbes. "We know that we can do this at a more affordable price, especially by directly facing consumers, while reducing (the cost of goods) and profit margins as much as possible."

Brent Conlow, Levi's father and co-owner of Letric eBikes, provided the couple with $40,000 in seed funding to use his retirement savings. Initially, when the company’s first bikes were released and not sold, it seemed like a wrong bet. "It was definitely a disaster," Levi Conlow recalled. "We lost his money and we may have messed up his retirement life."   

Things didn't go well, but the co-founders raced to find out where they went wrong. They collected as much feedback as possible to understand what people did not like about the first bicycle, its shape, function and materials, and quickly followed up to improve the design, namely Lectric's XP bicycle. But this meant borrowing more money from Lewell's father. "I asked my dad,'Are you willing to lose another $10,000? At that time, he knew I had screwed up his retirement, so he gave us an extra $10,000."

At that moment, everything changed. With an improved design, Lectric went from selling one or two bicycles per month in 2019 to XP worth US$2 million per month a year later. Earlier this year, his company surpassed the cumulative sales of 100,000 electric bicycles in October 2021. This year's revenue will reach 85 million U.S. dollars, and Conroe said that this number may double in 2022.

"In just two years, Lectric has become one of the largest and fastest-growing electric bike brands in the United States," Bertram Capital partner Ryan Craig said when VC announced the financing. "Lectric's team achieved this goal through a novel approach to design, marketing, distribution and customer support, which has won it thousands of highly satisfied and loyal customers." 

"When we first appeared at our price point, we were always looking for the throat of this industry."

Given the surge in demand for electric bikes in the United States, their timing couldn't be better. Market analyst Dirk Sorenson said that the Covid-19 pandemic has triggered a surge in bicycle sales starting in 2020. In the 12 months ending in July 2021, the overall two-wheeler market has Two years ago, it increased by 65% ​​to 5.3 billion US dollars. Researcher NPD Group. 

Sorensen stated in a recent report that in the past two years, "electric bicycles have grown by 240%, making it the third-largest bicycle category in terms of sales revenue," second only to mountain bikes and children's bicycles, and ahead of roads. bike. 

Lectric eBikes CEO Levi Conlow (left), Brent Conlow (middle) and Chief Innovation Officer Robby Deziel.

Conlow said: "When we first came out at the price of $999, we went to find the throat of this industry." "The speed of adoption is very fast, which allows us to grow so quickly."

Lectric's improved funding and connections with suppliers and shipping companies are helping it manage congestion in West Coast ports (where its Asian-made bicycles arrive), which is causing supply problems across the economy. "At the end of 2020 and the beginning of 2021, we made some major investments and adjustments to billing, manufacturing, and warehousing. This is now starting to pay off."

Lectric’s XP and variant Step-Thru models have a top speed of 28 miles per hour and can travel an average of 20 to 30 miles per charge. They have a sturdy frame that contains a 48-volt lithium-ion battery pack, thick heavy-duty tires and a rear luggage rack. Even if customers use all available Lectric options to upgrade their bikes—including more comfortable seats, luggage racks, and company-designed locks and headlights—the price will climb to $1,345, which is still lower than the 1,500 to $1,500 for many competing products. The cost of $3,000. They ship to customers all over the United States for free. 

Conlow and Deziel are preparing to build Lectric's product line with better models and features, but they don't expect their top bikes to sell for more than $1,700. They also see the potential to increase sales of delivery services looking for low-cost, low-carbon city vehicles. 

The important thing is that Kang Luo is happy that they haven't made his father poor. "We have paid off for my old man, and he is very satisfied with the investment."