RAYVOLT POISED TO LEVERAGE E-BIKE MARKET GROWTH WITH 21ST-CENTURY TECHNOLOGIES
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RAYVOLT POISED TO LEVERAGE E-BIKE
MARKET GROWTH WITH 21ST-CENTURY
TECHNOLOGIES
INNOVATION AND STYLE DISTINGUISH RAYVOLT IN A CROWDED FIELD
EXECUTIVE SUMMARY
While autonomous driving and electric vehicles have dominated the conversation in the
traditional transportation field over the past decade, there is little question that the e-
bike market is hot and surging. Some forecast the global e-bike market to reach $38.6
billion by 2025, up from the $21.1 billion that the market generated in 2018 (a CAGR of
9.01%).1 This growth has caused an e-bike “gold rush” with dozens of players, including
many legacy bike brands and new startups, entering the space. On popular
crowdfunding sites like Kickstarter and Indiegogo, 130-plus e-bike startup companies
currently have funding campaigns underway.2 As a basis for comparison, just 14 major
global corporations produce the bulk of automobiles worldwide under more than 60
brands.
STRONG MARKET GROWTH BUT LITTLE DIFFERENTIATION
Despite the projected growth in the e-bike category, it’s unlikely that the market can
profitably support long-term the more than 150 entities currently offering products. Most
e-bikes on the market, particularly those from startup companies, are not much more
than traditional bike designs with a battery and motor bolted on. Design and aesthetics,
something the automobile category has excelled at since the early 1950s, appear to be
an afterthought for most e-bike manufacturers. Although advances in battery technology
allow many e-bikes to travel more than 50 miles on a single charge and pricing has
become more reasonable, most e-bikes do not use smartphone technology or
incorporate other modern capabilities that could facilitate a safer, more enjoyable
experience.
1 https://www.prnewswire.com/news-releases/the-38-6bn-ebike-market-by-2025---government-initiatives-
to-regulate-e-bikes--improve-infrastructure-for-e-bikes-creates-lucrative-opportunities-300812590.html
2 https://www.kickstarter.com/discover/advanced?ref=nav_search&result=all&term=ebike and
https://www.indiegogo.com/explore/all?project_type=campaign&project_timing=all&sort=trending&q=ebik
e
Page 1 Rayvolt Poised to Leverage E-Bike Market Growth September 2020
Copyright ©2020 Moor Insights & Strategy
Rayvolt Bike aims to be a different type of e-bike company. This brief will explore the
beginnings of the company, the background of its founder and its product, business and
go-to-market strategy, as well as its differentiation potential in a crowded market.
RAYVOLT’S ORIGINS
Rayvolt Bike is the brainchild of Mathieu Rauzier, who founded the company in
Barcelona in 2016. Like many technology leaders, Rauzier’s history may play a central
role in the company’s potential success. Rauzier has an educational background in
naval engineering, with experience in yacht design, web design and even the creation of
paddle surfboards. Interestingly, Rauzier also had a stint as a photographer in San
Francisco. His experience is evident in the Rayvolt brand, product line and vision. Many
consumer-facing brands with distinctive personality and uniqueness (Alienware and
Tesla come to mind) emerge with founders who have creative and design backgrounds.
Rauzier committed Rayvolt to a mission that prioritizes meticulous design, elegant style
and, perhaps most important, compelling integration of 21st-century smartphone
technologies. He has also taken a fundamental platform approach for Rayvolt’s design
strategy, delivering the same core functionality on all models.
Many e-bike companies approach design with a heavy bolt-on mentality to minimize
costs and leverage off-the-shelf parts. This philosophy, however, generally produces
industrial or utilitarian designs that do not inspire the average consumer in the manner
of an Apple iPhone or a BMW automobile. Rauzier fundamentally rejects this tactic with
e-bike models of unmistakably eye-catching and unique style.
THE RAYVOLT PRODUCT LINEUP: SWAGGER ON STEROIDS
Rayvolt designs e-bikes for consumers who want attention. There is nothing utilitarian in
their oversized, low-slung presentation that rejoices in retro style. All Rayvolt models
utilize a rear hub-mounted motor and a leather-clad battery pack that sits in the frame’s
center. If you didn’t know it was an e-bike, a Rayvolt bike could easily be mistaken for a
motorcycle without exhaust pipes.
The disadvantage of Rayvolt’s design approach is weight. Rayvolt bikes are available in
medium and large formats; the larger size (which includes 26” wheels) weighs 75
pounds, an inhibition for consumers who want a lightweight e-bike for travel.
Page 2 Rayvolt Poised to Leverage E-Bike Market Growth September 2020
Copyright ©2020 Moor Insights & Strategy
FIGURE 1: RAYVOLT PRODUCT LINE
Source: Rayvolt
Rayvolt’s product line runs the gamut from traditional cruisers to road bikes to cargo
bikes, all of which enjoy a highly distinctive classic flair with design touches that rely
heavily on artful leatherwork and even copper accents.
Rayvolt’s signature model is the Cruzer, which, with its stretched wheelbase, shares a
likeness with a well-known American-made motorcycle.
The Ambassador model will appeal to consumers looking for less swagger and a more
classic design. The battery is ingeniously placed in a leather satchel bag that can be
easily removed and carried with a shoulder strap. The bag even has extra space for
storage.
The Torino is easily the sportiest of Rayvolt’s products. With its narrow wheelbase and
straight handlebar, the Torino is extra nimble and targeted for more performance-
oriented riders. It is available with an optional 1000W motor that generates speeds as
Page 3 Rayvolt Poised to Leverage E-Bike Market Growth September 2020
Copyright ©2020 Moor Insights & Strategy
high as 25 mph. The Torino’s frame is smaller than the Cruzer’s, and it targets riders
who require agility for weaving through traffic and around pedestrians.
Finally, Rayvolt’s Clubman model is the most affordable at $1,999. To hit this price
point, the Clubman uses off-the-shelf parts and does not include a custom motor. It
does include multiple gears, however, unlike other models. The Clubman’s fat tires also
tend to generate a highly comfortable ride that will presumably appeal to older
consumers less interested in a tighter, road-hugging experience. This model, the best
option for the mass market on price, is practical with full-length fenders and optional
front and rear cargo racks.
CUTTING-EDGE TECHNOLOGY
Except for its Beachin’ and Clubman models, Rayvolt custom designs its e-bike motors
(just as Apple years ago decided to create processors for its smartphone and tablets to
optimize the user experience). Rayvolt claims its motor design generates more
acceleration, response and torque with less noise and vibration as compared to
standard motors. Its custom brushless 3-phase DC motor has 48 different copper coils
and magnets placed on the outermost perimeter of the engine for optimal torque
performance. The motor also includes a built-in solid-state controller that receives heat
and position data from the coils that compute within one millisecond where to put the
next load. The aforementioned product architecture is reflected in all Rayvolt e-bike
models.
For any electric vehicle, the type and number of battery cells dictate performance and
life expectancy. Standard lithium-ion technology has dramatically improved battery life
over the past several years, but Rayvolt goes even further to maximize e-bike mileage.
Rayvolt uses 13 cells in a series to generate a nominal voltage of 48V. At peak voltage,
a full charge produces 54.6V, which is unusually powerful for the traditional e-bike.
Rayvolt’s state-of-the-art battery technology optimizes power utilization and can balance
the charge between each individual cell and terminate the connection in case of a short
circuit. This dynamic enables the best possible performance while making the battery
safer.
Also, in the pursuit of the safest possible e-bike riding experience, Rayvolt created its
own electronic braking system dubbed “intelligent” regenerative braking. The system
transmits a signal to the motor controller and causes a reverse effect in the motor. This
converts torque to resistance and uses wheel inertia to generate electricity and
recharge the battery. Rayvolt’s braking system also connects to a built-in gyroscope in
Page 4 Rayvolt Poised to Leverage E-Bike Market Growth September 2020
Copyright ©2020 Moor Insights & Strategy
its Electronic Intelligent Vehicle Assistant (EIVA) proprietary software. That connection
allows the bike to detect cycling environments to produce the necessary amount of
regenerative braking with respect to hill angle.
Though Rayvolt’s e-bike lineup is decidedly distinctive and edgy, distinguishing it from
most competitors, the true differentiator is its use of bleeding-edge technology to
produce a safer and more entertaining riding experience. Smartphone usage has
conditioned consumers to expect a high level of technology in their products, but the
scores of e-bikes on the market do not offer or integrate this level of technology. The
EIVA app for smartphones (Apple iOS and Google Android) allows riders to control,
customize and monitor the biking experience. The app provides speed, battery state,
mph, Bluetooth connection status and other essential bike specs. Riders also adjust
pedal assistance and control music playback through EIVA, which is especially useful
for riders who utilize Bluetooth-enabled safety helmets with integrated speakers. The
app also facilitates GPS access.
FIGURE 2: RAYVOLT MOUNTED SMARTPHONE HOLDER WITH
ELECTRONIC INTELLIGENT VEHICLE ASSISTANT (EVIA) APPLICATION
Source: Rayvolt
Page 5 Rayvolt Poised to Leverage E-Bike Market Growth September 2020
Copyright ©2020 Moor Insights & Strategy
Rayvolt’s integration of smartphone technology into its e-bike lineup has significant
implications. It not only delivers a differentiated rider experience, but also reveals the
company’s vision for the future of the e-bike category.
In early October 2019, Rayvolt announced its X One lineup of cutting-edge e-bikes via
an Indiegogo campaign with an original goal of $50,000.3 As of mid-Nov. 2019, the
campaign generated more than $169,000. From a smart technology standpoint, it’s the
most aggressive e-bike that Rayvolt has developed and is the benchmark against which
other advanced e-bikes should be judged. Scheduled for shipment in Oct. 2020, the X
One includes several patented technologies that enhance Rayvolt’s already strong
brand differentiation. Complete specifications have not been released, but the product
details that are public affirm Rauzier’s vision for what a 21st-century e-bike should be.
FIGURE 3: RAYVOLT X ONE (WITH EMBEDDED BATTERY
COMPARTMENT)
Source: Rayvolt
X One, with a starting MSRP of $1,999, is the first of a new line of products under the
eXXite brand and the Rayvolt corporate umbrella. Design elements prevalent in the
3 https://www.indiegogo.com/projects/xone-ebike-the-ultimate-21st-century-e-bike#/
Page 6 Rayvolt Poised to Leverage E-Bike Market Growth September 2020
Copyright ©2020 Moor Insights & Strategy
Cruzer, Beachin' and Torino models also appear in the X One. The X One features an
all-new aluminum composite frame paired with a carbon fiber fork, which Rayvolt claims
will deliver comprehensive e-bike functionality at only 48 pounds. Ingeniously, the X
One includes a fully integrated 42V (16Ah) battery in the bike's frame, creating
remarkable structural rigidity without adding superfluous mass to the overall structure
flow. What's more, the X One promises the first backpedal proportional regeneration
system that permits riders to simply pedal backward to slow the pace. It also includes
an integrated gyro sensor that intuitively engages regeneration when riding downhill.
FIGURE 4: RAYVOLT X ONE (WITH EMBEDDED SMARTPHONE
COMPARTMENT)
Source: Rayvolt
The X One offers a plethora of integrated lights that makes 24/7 riding safer and more
accessible. Rayvolt integrated ambient photosensors into the model’s frame that turn
the headlight and taillight on automatically, a feature that has been common on cars for
years.
Page 7 Rayvolt Poised to Leverage E-Bike Market Growth September 2020
Copyright ©2020 Moor Insights & StrategyThe X One’s design allows the most popular smartphones to securely dock inside the
frame itself, just below the handlebar. The EIVA app uses facial recognition software to
automatically unlock the bike when it identifies the owner. According to Rayvolt, kinetics
embedded in the facial recognition may eventually be used to activate turn signals with
the blinking of an eye, left or right. Long-term, it is easy to envision how these
innovations could be beneficial to scooter or e-bike sharing companies who might want
to utilize Rayvolt’s e-bikes for rental.
GO-TO-MARKET STRATEGY
Perhaps the most daunting challenge for Rayvolt and other e-bike startups is
widespread product distribution. Access to e-bikes is especially important because as a
new product category most consumers will want to see and ride one before making a
purchase decision.
Legacy retailers sell mostly non-electric bikes and physical space limits model
assortments. This makes it difficult for startups like Rayvolt to get their products into
showrooms. BikeRetailer.com reports the number of bike retailers have remained
relatively constant since 2012,4 which makes it hard for e-bike startups to achieve
reasonable distribution. Rayvolt focuses on its website to capture and funnel sales to its
dealer and distributor network in Europe, the U.S. and other regions.
As a new product category for most traditional bike retailers, e-bikes require a higher
level of product and technical expertise and thus greater investment and training to
properly market and support. Because of this dynamic, smaller, boutique bike retailers
(often privately held and managed) tend to do a significantly better job with promoting
the virtues of e-bikes, especially in local markets. This class of retailer also tends to do
a better job of selling Rayvolt’s lucrative line of after-market accessories developed with
the brand’s distinctive design elements.
Unlike most startups, which often exclusively focus on direct online sales, Rayvolt’s
business model has a distinctive B2B element. Their price structure includes a margin
for both retailers and importers, allowing Rayvolt to sell on multiple levels with retail,
wholesale and export pricing. In those markets that have a strong retail dynamic,
Rayvolt will sell directly to traditional retailers. In large or remote markets where Rayvolt
doesn’t have the manpower or infrastructure to operate, the company will partner with a
third-party importer to act as the local Rayvolt office.
4 https://www.bicycleretailer.com/opinion-analysis/2019/09/24/vosper-how-other-half-lives#.Xcx5PlfYq2N
Page 8 Rayvolt Poised to Leverage E-Bike Market Growth September 2020
Copyright ©2020 Moor Insights & StrategyIn this example, the importer will buy product from Rayvolt at an established price and
then sell to dealers at a wholesale price. A good example of this process is Trident
Sports, a Rayvolt importer in the U.S. responsible for purchasing, shipping, marketing,
inventory management and sales agent management.5 Rayvolt directs each importer to
utilize a dedicated brand manager that Rayvolt trains. The advantage of this approach is
it allows Rayvolt to participate in multiple geographic markets with fewer resources.
Rayvolt has successfully deployed this global model with entities in Australia, New
Zealand, Germany, France, Belgium, Africa and Scandinavia. Each location has a
dedicated brand manager and is in the process of opening a flagship store or showroom
with Rayvolt bikes, accessories and apparel. Rayvolt requires that these dealers
dedicate a corner, half or full store to the Rayvolt brand. Additionally, each distributor
must have a mobile showroom implementation that can go on the road to demo
products, engage with potential franchisees and create brand awareness.
Rayvolt believes a de-centralized approach is crucial for maintaining high-quality service
as it establishes a solid network in each country with regular inventory, local brand
management and sales and tech support resources. By not burdening its corporate
expense structure with these resources, Rayvolt can operate more efficiently and
profitably with more competitive price points.6
Rayvolt created a validation process to carefully select those retailers who wish to sell
the company’s e-bike lineup. It requires local retailers to commit to showcasing and
merchandising at least two of its models. Rayvolt reserves the right to evaluate each
retailer’s application based on the store’s appearance and ability to facilitate thoughtful
merchandising with consumers. Not surprisingly, Rayvolt’s inspiration is the Apple Store
format. Rauzier believes that retailers who provide the right upscale experience during
the initial engagement with the consumer are most likely to effectively message the
benefits and value proposition of Rayvolt’s product line.
Recognizing that building a comprehensive dealer network will take some time, Rayvolt
is rolling out an innovative program dubbed Demo To Your Door. Demo To Your Door
uses a modified RV to promote the Rayvolt brand at festivals, bike shows and other
venues in select cities on the U.S.’s west coast, enabling consumers to see and ride a
Rayvolt bike.
5https://www.tridentsports.com/our-story/meet-the-team/.
6 Rayvolt operates as a de-centralized multinational entity via a mutual business arrangement with its various
geographic independent companies. Rayvolt’s international trade office (“Rayvolt Inc.”) is based in Barcelona, Spain
and owns Rayvolt Bike SL where research and development is managed.
Page 9 Rayvolt Poised to Leverage E-Bike Market Growth September 2020
Copyright ©2020 Moor Insights & StrategyFIGURE 5: DEMO TO YOUR DOOR RENDERING
Source: Rayvolt
The program will be bolstered by an aggressive social media campaign on Instagram so
consumers know where and when the RV will be traveling. As this program scales,
Rayvolt has also hinted that it could use Demo To Your Door to visit potential
consumers’ homes in regions that lack authorized dealer coverage.
FIGURE 6: YEGO SCOOTER COMPANY LOGO
Source: Rayvolt
Rayvolt recently announced it was selected by Barcelona-based Yego, a popular
scooter-sharing company, to build a custom e-bike and standing electric scooter for use
in Yego’s network. This agreement provides Rayvolt with the opportunity to scale and
validate its technology offerings. With operations in Barcelona, Valencia and Bordeaux,
Rayvolt claims this partnership will allow it to collect valuable data for fine-tuning the
aforementioned smart features. Rayvolt says the partnership will assist Yego in
providing a more satisfying rideshare experience and mitigate some of the profitability
challenges due to high capital expenses that have plagued companies like Lime and
Page 10 Rayvolt Poised to Leverage E-Bike Market Growth September 2020
Copyright ©2020 Moor Insights & StrategyBird.7 The deal calls for Rayvolt to build 2,000 scooters and 2,000 e-bikes by the end of
2020 (though production will continue into 2021 due to the pandemic). 8
CLOSING THOUGHTS
Total transformation of a legacy market is rare, but it could happen in the bike market.
The competitive landscape of today’s bike market parallels that of the automobile
market in the first decade of the 20th century, with many companies vying for the right
combination of attributes to attract consumers and drive volume. The benefits of e-bikes
– for health, local commuting, personal enjoyment and the environment – may make
them the dominant class of bicycles over the next five years and beyond. Only time will
tell if the e-bike category can truly challenge conventional bikes, but there are certainly
market dynamics that are favorable to companies such as Rayvolt.
High fuel prices are a major tailwind for the traditional bike market and e-bikes as well.
This is especially true in European and Asian markets where high fuel prices are a fact
of life and commuting to work on a bike is culturally accepted. Workers in those regions
also tend to live near their places of employment.
It is not surprising that a number of startups have entered the e-bike space. More
parallels with the early 20th-century automobile market are likely as manufacturers go
out of business or are acquired by larger competitors. Those e-bike companies that
cannot differentiate themselves with style, branding and technology integration may
have trouble surviving over the long term.
Rayvolt has checked those proverbial boxes with a lineup of solutions that are truly
distinctive and compelling, aesthetically and technically. Rauzier seems to be a student
of the hard business lessons that the automobile industry learned during that early part
of the 20th century. Although early automobile manufacturers experienced initial
success because of the newness of the category and the ability to provide basic
transportation at an affordable price, greater success came to those companies that
focused on a recognizable style, branding, cutting-edge technology and safety.9 In that
regard, Rayvolt is substantially ahead of its competitors. Rauzier smartly ensures that
Rayvolt’s product line is competitive with its affordably priced Clubman model ($1,999
7 https://cleantechnica.com/2019/12/03/rayvolt-tapped-to-supply-barcelona-based-scooter-bike-sharing-network-
yego/
8 https://mountain-bike-companies.blogspot.com/2019/08/rayvolt-tapped-to-supply-barcelona.html
9 https://www.history.com/this-day-in-history/ford-motor-company-unveils-the-model-t
Page 11 Rayvolt Poised to Leverage E-Bike Market Growth September 2020
Copyright ©2020 Moor Insights & StrategyMSRP). He believes it will be the bread and butter of the company’s volume as it offers
the same design ethos and user friendliness of its higher-end models.
FIGURE 7: E-MOTORCYCLE CONCEPT FROM RAYVOLT
Source: Rayvolt
Rauzier has also stated that he believes the future of Rayvolt lies in the e-motorcycle
category as the company can leverage its design and technology expertise in that
growing category. Rayvolt showed off a number of intriguing e-motorcycle concepts at
its dealer event in early 2019 and will be previewing a 20kW e-motorcycle model in
Sept. 2021. A potential entrance into the e-motorcycle category would be a smart move
by Rayvolt as the global electric motorcycle (including scooters) market is expected to
Page 12 Rayvolt Poised to Leverage E-Bike Market Growth September 2020
Copyright ©2020 Moor Insights & Strategygrow from $11.8 billion in 2018 to $16.9 billion in 2024, representing a CAGR of
6.07%.10
Rayvolt’s chief challenge is its ability to augment its direct sales fulfillment business
model with a credible, expansive dealer network that can properly promote its high-
quality brand. It addresses this by fulfilling its direct customer orders via its de-
centralized distributor model, which supports Rayvolt with e-bike expertise and the
ability to provide highly valued local repair support and maintenance.
The recent partnership with Yego provides the company the ability to drive significant
volumes in the short term and validate many of the cutting-edge features it is bringing to
market with its X One announcement. Additionally, Rayvolt’s association with a scooter
sharing company will have enormous branding potential with thousands of users using a
Rayvolt solution regularly.
Looking to the future, Rayvolt will go through a few rounds of funding and expects a
public offering at some point over the next 24 months. Those funds could be used to
invest in the national distributors described above. Rauzier states, however, that
Rayvolt’s stake would not exceed 49% as he believes that is the best way for these
companies to achieve efficiency.11
With all of this in mind, it will be especially interesting to observe how Rayvolt performs
in the e-bike market over the next 24-36 months. The company is well-positioned to
break out from its startup position and potentially become a major disruptive force in the
e-bike market. One thing is for certain: Rayvolt will never be compared to Ford’s
infamous Edsel.12
10 https://www.businesswire.com/news/home/20190917005803/en/Analysis-Electric-Motorcycles-Scooters-2019-
World-Market
11 Interview with Mat Rauzier, Rayvolt CEO (12-7-19)
12 https://www.tfctitleloans.com/14-car-brands-that-no-longer-exist/
Page 13 Rayvolt Poised to Leverage E-Bike Market Growth September 2020
Copyright ©2020 Moor Insights & StrategyIMPORTANT INFORMATION ABOUT THIS PAPER
CONTRIBUTOR
Mark Vena, Senior Analyst at Moor Insights & Strategy
PUBLISHER
Patrick Moorhead, Founder, President, & Principal Analyst at Moor Insights & Strategy
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DISCLOSURES
This paper was commissioned by Rayvolt Bike SL Moor Insights & Strategy provides research, analysis,
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