A variety of troubling developments level to severe monetary troubles for SONDORS, the corporate behind a variety of electrical bicycles in addition to the Metacycle electrical bike (and an ill-fated three-wheeled electrical automotive, however that’s one other story).
This isn’t the primary time that SONDORS has raised eyebrows. The corporate burst onto the scene in 2015 with a controversial new e-bike for the rock-bottom value of $500. On the time, many questioned whether or not it was a rip-off. SONDORS finally delivered the bikes, although rolled in late and landed quick on the revealed specs. And that grew to become a trademark of the corporate over time with a number of new product launches: delivered late and under-specced however all the time getting there. Largely.
This time, although, could also be completely different. Now the corporate appears to be going through quite a few monetary troubles which have resulted in worrying indicators of potential collapse.
It began in early 2021 when the corporate unveiled its flashy Metacycle electrical bike. At a cut price value of $5,000 with a high velocity of 80 mph (130 km/h) and a max vary of 80 miles (130 km), it seemed like a revolution within the trade.
However with the intention to get a experience on that revolution, prospects needed to entrance the cash upfront.
In standard SONDORS vogue, the corporate overran its anticipated timeline by months after which almost a yr. Some prospects had been indignant, finally asking for refunds. Many acquired them. However ultimately, the Metacycles began rolling out in small batches and arriving at some pre-order prospects’ doorways. I even obtained a experience on one of many bikes. It was truly surprisingly good.
Certain, it didn’t meet the efficiency figures that had been initially promised. And the shiny polished aluminum body by some means morphed right into a matte PVC-pipe-colored grey. And it was by some means almost 50% heavier than anticipated. However the bike labored fairly properly and was quite a lot of enjoyable.
Alongside the best way, SONDORS opened one other spherical of orders at the next value of $6,500. Unusually, a few of these orders even began arriving to prospects, regardless of most of the unique first batch prospects from greater than a yr earlier nonetheless sitting there empty-handed. It appeared that SONDORS wasn’t transport primarily based on order quantity however fairly prioritizing prospects that it might rapidly attain with its deliveries or who lived in states the place SONDORS had already acquired regulatory approval for registrations and established distribution options.
As SONDORS continued to take orders however dragged its ft on shipments, buyer anger grew. Extra riders started demanding refunds, a lot of which had waited almost two years at that time. Those who acquired refunds usually needed to contact the corporate dozens of instances over weeks or months. Many extra couldn’t get refunds in any respect.
SONDORS was clearly in determined want of cash and set its sights on an IPO to rapidly generate the money it wanted to remain afloat. However the IPO plan was beset with issues from the beginning and ultimately unraveled.
That’s when key personnel began leaving the corporate, together with executives. (Writer’s observe, and probably spoiler alert: At this level, it’s unclear precisely who stays working at SONDORS. There doesn’t look like anybody left in PR or advertising, and the CEO, Storm Sondors, has not responded to my requests for remark by the point of publishing.)
Mainly, issues weren’t wanting good for SONDORS or the corporate’s prospects, however this was additionally an organization that had repeatedly been pushed onto the ropes and by some means all the time gotten again as much as make it via one other spherical. Some held out hope that it might pull off one other miracle.
Subsequent, SONDORS launched a fireplace sale on Metacycles, which it claimed put 1,000 extra orders on its books. If true, that seemingly added extra cash to its coffers. The ultimate Hail Mary for the beleaguered e-bike firm seems to have been the disclosing of an off-road electrical bike referred to as the MetaBeast. It was solely proven in renders, however that didn’t cease SONDORS from taking pre-orders for that mannequin too.
That brings us to the current day.
If SONDORS had pinned its monetary salvation on these MetaBeast pre-orders, then it doesn’t look promising.
All indicators level to a severe monetary meltdown at headquarters. In truth, there might not even be any headquarters anymore.
Based on Google, the SONDORS facility in Los Angeles is now “completely closed.”
However, apparently, leaving headquarters and dealing from house is the least of SONDORS’ company points. That’s as a result of it could’t even take bank card orders anymore.
Visiting the SONDORS web site and attempting to buy a motorbike brings up an error explaining that the corporate can’t take orders proper now. That’s seemingly attributable to a standing concern with SONDORS’ service provider account.
Whereas there do look like tons of of Metacycles already cruising round US roads, there are seemingly hundreds extra prospects nonetheless ready for both a refund or a motorbike. They collect in on-line communities, sharing recommendations on potential avenues for refunds or in any other case merely commiserating collectively.
“Similar as so many,” says one Metacycle buyer. “I paid in full in 2022, canceled my order, was assured a refund, and have now been ghosted by telephone and e-mail for months. I attempted to do a chargeback on my bank card, however they don’t permit it previous 120 days.”
Some others have been profitable with bank card chargebacks, corresponding to one other buyer whose supply window got here and went final spring. This buyer mentioned, “After being informed that the bike was nonetheless in ‘high quality examine’ and can be not more than 4 to five weeks ‘tops’ again at first of April of this yr, after which being fully and fully ghosted by assist tickets, telephone calls, voicemails, and emails, ever since, I lastly went and did a chargeback with my bank card firm just a few weeks in the past, and I’ve by no means felt higher. I wasn’t even in a position to request a cancelation/refund via Sondors as a result of they had been fully unresponsive to any type of correspondence, which I consider truly labored to my favor on this case.”
Many purchasers at the moment are brazenly discussing plans on-line for a category motion lawsuit, whilst rumors swirl of a fraud investigation from the Lawyer Common of California.
The place did all of it go so unsuitable?
Hindsight is 20/20, and we aren’t even on the hind finish of this ordeal but, however the main points can seemingly be traced again to SONDORS’s resolution to increase into bikes.
Electrical bicycles, whereas not easy machines, are vastly easier than electrical bikes. The whole lot about e-bikes, from manufacturing to rules to achievement logistics, is a stroll within the park in comparison with bikes, that are honest-to-goodness motor automobiles.
Whereas the corporate’s purpose was admirable – attempting to take their experience in contract manufacturing to the following stage with a bigger and extra succesful product – the added value and complexity had been seemingly one thing the crew merely wasn’t ready for.
It’s not the primary time a micromobility firm on seemingly stable floor has overextended itself. Boosted Boards, as soon as the model title in electrical skateboards, sought to increase its market with a high-tech and highly-refined electrical scooter. And that’s precisely what it did – till the venture proved so sophisticated and capital-intensive that it bankrupted the corporate after the primary spherical of deliveries. Sound acquainted?
So what occurs now?
At this level, the longer term for SONDORS appears grim however not sealed. If any e-bike firm can dance its approach out of impending monetary doom, it’s SONDORS. Nobody has extra expertise at it. However on the flip facet, we’ve by no means seen SONDORS dance this near midnight, and the music may be very near going out.
With out with the ability to attain anybody at SONDORS for remark, it’s inconceivable to say precisely what’s going on or simply how rocky the corporate’s footing presently is.
And with the Dutch e-bike firm VanMoof’s chapter nonetheless recent sufficient within the trade’s collective reminiscence, such a fast fall from grace is not unthinkable.
One factor is for certain, although. For those who had been planning on a MetaBeast as a Christmas current, you must in all probability have a backup plan simply in case.
