As I have continued to research cargo E-Bikes, I have consistently referred back to REI’s Co-Op Generation class E-Bikes, both because it was my first E-Bike and the Co-Op Generation E-Bikes act as a baseline comparison. In July 2023 the REI Co-Op Generation E-Bikes discounted and was retailed for 40% for six months. After two years on the market both the REI Co-Op e1.1 and e.1.2 are no longer for sale as of June 2024.
Granted, technology products have a limited market life. As a consumer, I was not distressed about buying a “discontinued” model, so long as I knew that future products were in the pipeline and the manufacturer was not abandoning the product line.
REI has introduced new Mountain E-Bikes, City E-Bikes and Dirt E-Bikes but there has been no word about future “E-tility” or Cargo E-Bikes. So it is reasonable to consider the e.1.1 and e.1.2 as REI’s Lost Generation.
Although I lack insider information, a cursory market analysis is still instructive. REI Co-Op considers itself a boutique outdoors and sports retailer with 179 locations nationwide. REI tends to sell their own private label brands of sports merchandise. In 2016, REI discontinued their Novara bicycle line after bad publicity and relaunched their house brand as Co-Op. The Generation E-Bike was launched as a lifestyle E-Bike which was meant to appeal to a broad range of consumers.
Even for 2022, the specs of the REI Co-Op Generation E-Bikes, the specs were underwhelming for an American E-Bike. The “E-tility” short tail cargo bikes had a 350 watt motor and had a maximum payload of 300 lbs (including the passenger). The battery capacity and range was on the lower end. But some delivery drivers that I encountered thought that it was a useful bike, especially with REI’s service.
The MSRP for the Generation line was $1895 for the e.1.2 with a larger battery and a front rack and the e.1.1 which had an estimated 30 mile range but came with front suspension for $1495. The REI Co-Op Generation E-Bikes were a good value for money at a 40% discount, with a $1138 and $898 price point respectively. However, it was unclear if the REI Co-Op E-Bikes were model orphans and whether parts would be readily available in the future.
Beyond the consumer cost-value calculus, REI might have miscalculated on their audience. These REI Co-Op Generation E-Bikes were lifestyle bikes which was geared to commuter/ delivery audience. The short tail design, without accessories like a child seat, loses out on the Generation Z parents with 1 kid who wants a car-less city transport. REI appeals to outdoors consumers willing to pay a premium for products, not necessarily utilitarian E-Bike riders.
Although REI still markets a couple of City E-Bikes intended for commuting at a similar price point to the Generation line, it seems REI is concentrated on higher end products. The CTY e.2.2 has a Bosch mid-drive motor with a 625wh battery that has a 4ah charger. The maximum payload is 300 lbs. But the MSRP on the REI CTY e.2.2 is $2950. This price is similar to the Terns and Bennos that REI also sells. It seems that REI’s Lost Generation means that it has given up on the entry “E-tility” E-Bike consumer.
There is a larger question as to whether it is wise for REI to sell house brand E-Bikes. Most E-Bike manufactures rely on imported, generic parts (with varying specifications). Granted, REI designs and assembles their E-Bikes domestically but relies on Chinese parts. With the impending imposition of tariffs on Chinese E-Bikes, prices will certainly go up and there may be supply disruptions as some parts manufacturers close. Can a house brand like REI Co-Op be competitive when vying for higher end E-Bike consumers against the likes of Specialized, Trek, Tern, Benno et ali.?
Comments
Post a Comment