We recently commented on the bankruptcy of electric motorcycle company Cake, and how this might reflect the broader e-mobility market. A new development in this ongoing story has now emerged: Michael Joyce, owner of the retail shop Emoto in St. Petersburg, Florida, has acquired all available Cake Makka and Ösa motorbikes, along with accessories and spare parts, in an effort to keep the Swedish electric motorcycle brand afloat. Notably, Joyce did not purchase Cake Kalk electric motorcycles due to safety recalls. Joyce, in collaboration with Detroit-based start-up Bloom, plans to warehouse and distribute the acquired inventory. Bloom offers support services, such as contract manufacturing, delivery, and logistics, alleviating the operational burdens faced by startups like Cake. This move reflects an industry trend where companies are exploring partnerships to navigate challenges more efficiently.
Joyce aims to secure Emoto’s future by negotiating with other electric motorbike companies while using the Cake inventory as a short-term solution. Despite initial struggles selling Cake’s expensive products, Joyce implemented a consignment model that allowed customers to experience the bikes first-hand, resulting in improved sales. While the inventory is being transported to Bloom’s Detroit warehouse, the collaboration between Joyce and Bloom presents a novel hybrid business model that could shape Emoto into a comprehensive showroom for electric motorbikes. Joyce expresses interest in continuing the partnership if Cake successfully restructures, highlighting the evolving dynamics in the electric vehicle industry.
While the future of Cake is uncertain, this purchase highlights the continued interest in e-mobility and how the different market players from suppliers to retailers are willing to adjust and adapt to cope with market changes. Will Cake be able to sell its inventory in other locations? Cake’s motorcycles are expensive and without the spare parts to maintain them, consumers may turn to other brands instead, depending upon the expected lifetime of vehicles (electric motorcycles are expected to last between 8 and 10 years with proper maintenance). On Emoto’s part, this will be a useful stopgap to maintain supply until either Cake is restructured or another supplier is found.
Get in touch if you would like to learn more about the markets for both electric and ICE motorcycles as well as other vehicles and e-mobility options or would like to access our market data.
The original article is here.
