The E-Bike Industry’s Struggle: Surviving in a Post-Pandemic Landscape

Shockwaves are reverberating through the e-bike industry in Canada and the United States, following a year marked by the bankruptcy of several prominent brands and others halting North American sales. The industry’s unprecedented growth during the pandemic has given way to a series of challenges, including rising competition, technological advancements, and supply chain disruptions.

The Fallout from Pandemic Growth

Vancouver-based DOST Bikes, California-based Juiced Bikes, and Montreal’s iGO Electric all declared bankruptcy or entered receivership within the past year. Even global giants like Yamaha Motor and Stromer have pulled their e-bikes from North America, citing a market that has softened.

What Makes E-Bikes Popular?

E-bikes have gained traction due to their speed and comfort, transforming traditional biking into a more accessible and enjoyable experience. From delivery personnel to commuters, enthusiasts appreciate the ease of long trips and the fun of going fast. In Canada, e-bikes are capped at 32 km/h, with ranges typically ranging from 50 to 100 kilometers.

The Rapid Growth of the E-Bike Market

The pandemic saw e-bike sales soar, as consumers took advantage of increased free time and leisure activities. In 2022, the Canadian market was worth approximately $240 million, with around 70,000 bikes sold. By 2025, estimates predict the market will grow to $345 million, with more than 100,000 annually sold. Prices range from $14,000 for a Stromer bike to $600 for a budget model from an overseas manufacturer.

Challenges Facing Local Brands

Despite market growth, domestic makers and retailers face tough competition. The local industry has flattened, with businesses struggling to stay afloat. Many must find unique niches for survival in a market dominated by overseas manufacturers’ direct-to-consumer sales.

The Case of DOST Bikes

Sam Atakhanov, the founder of DOST Bikes, witnessed the industry’s decline firsthand. Launching his company in 2019, Atakhanov attributed DOST Bikes’ downfall to a series of challenges, including the impact of Apple’s iOS 14 on advertising, supply chain disruptions, and rising interest rates. Ultimately, DOST Bikes filed for insolvency in December 2023.

Adapting for Success

To navigate the industry’s challenges, local brands must adapt by diversifying their sales channels and offering unique products. For example, ENVO Drive Systems, based in Vancouver, sells through multiple platforms, including Costco, storefronts, and online, and expands its product lineup beyond e-bikes to e-scooters and other mobility solutions.

The Evolving E-Bike Ecosystem

Technological advancements continue to shape the e-bike landscape. Companies like DJI are developing innovative features such as smartphone connectivity, presenting new hurdles for smaller manufacturers. Kevin McLaughlin, CEO of Zygg E-Bikes, highlighted the need to modernize and differentiate in a rapidly evolving market.

Looking Forward

While the challenges are significant, the demand for e-bikes remains strong. Michael Pasquali, founder of the Canadian Electric Bike Association, believes that the trend will persist, even if the market’s growth rate slows. E-bikes offer an enticing combination of speed, comfort, and affordability, making them a popular choice for a variety of users.

Next Steps for E-Bike Enthusiasts

For consumers, the diversity in offerings from various manufacturers means more choice than ever. As the industry stabilizes, innovation and diversity of products will likely drive continued interest in e-bikes.

Ultimately, the future of e-bikes in Canada and the United States depends on the ability of both local and global manufacturers to adapt to a fast-changing market. While challenges remain, the fundamentals of why people love e-bikes—a blend of speed, convenience, and affordability—remain intact.

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