Kenny Fischer and his wife Victoria Brunner founded FattE-Bikes in Denver in 2017. (BusinessDen file)
FattE-Bikes is riding away from individual customers.
The Denver-based electric bike maker plans to cease direct-to-consumer sales and focus entirely on selling large fleets to corporations, government entities and other organizations, according to co-owner Kenny Fischer.
“We have to make the move we think is going to help us take things to the next level and more importantly, take the industry to the next level,” he said. “It’s time electric bikes are available around the world.”
Fischer declined to disclose revenue figures, but said FattE has taken a hit as “box brands” rode into the Denver market. The company started exploring new business models last winter and landed on business-to-business.
“One consumer at a time felt good but 1,000 feels better,” Fischer said.
He said FattE will continue to service and repair all of the bikes it has sold, but it will sell individual bikes only until the end of the year.
In the meantime, it’s already secured contracts from large organizations. Fischer said FattE-Bikes recently signed a deal with the Department of Defense to ship bikes to families living on military bases. The Colorado Energy Office just purchased 70 bikes for its employees and a Broomfield aerospace company bought 34, he said.
Fischer said corporations are attracted to FattE because it’s high-quality, local and partially woman-owned. He owns the business with his wife, Victoria Brunner. The couple launched the business in 2017. Bikes are made in a facility at 2596 W. Barberry Place in the Sun Valley neighborhood.
Fischer said it also helps that Colorado passed a bill this year that covers a portion of alternative transportation, like e-bikes, that employers purchase for employees.
Bikes range from $2,000 to $3,000, which in part is why Fischer is switching the business model. He said larger chains can sell bikes in the $1,200 range, which is fully covered by the city’s rebate program.
Denver launched its rebate program last year to get more people out of cars. Depending on income, Denverites can receive vouchers between $300 and $1,400 to purchase an e-bike. The state launched a similar program in August.
“The greatest disruptor to any industry is free product,” Fischer said. “Our city and state is inadvertently directing people towards free e-bikes by having a rebate that is the same quantity and value of cheaply made bikes.”
Last year, Fischer estimated he received over 100 bike orders from the rebate program. This year, he’s received less than 10, he said. While FattE was able to pivot and take a new path, Fischer said he worries how other local companies will survive.
“We all did great, then they allowed cheap brands, and the faucet was turned off cold,” he said. “I don’t blame the rebate or the city. They started out with the best intentions, however, it’s important to bring in all key players to understand where things are going.”
Over the summer, Fischer spoke with BusinessDen about battling thefts of bikes from his shop, saying he had at times taken to sleeping in his facility overnight to confront would-be burglars.
Kenny Fischer and his wife Victoria Brunner founded FattE-Bikes in Denver in 2017. (BusinessDen file)
FattE-Bikes is riding away from individual customers.
The Denver-based electric bike maker plans to cease direct-to-consumer sales and focus entirely on selling large fleets to corporations, government entities and other organizations, according to co-owner Kenny Fischer.
“We have to make the move we think is going to help us take things to the next level and more importantly, take the industry to the next level,” he said. “It’s time electric bikes are available around the world.”
Fischer declined to disclose revenue figures, but said FattE has taken a hit as “box brands” rode into the Denver market. The company started exploring new business models last winter and landed on business-to-business.
“One consumer at a time felt good but 1,000 feels better,” Fischer said.
He said FattE will continue to service and repair all of the bikes it has sold, but it will sell individual bikes only until the end of the year.
In the meantime, it’s already secured contracts from large organizations. Fischer said FattE-Bikes recently signed a deal with the Department of Defense to ship bikes to families living on military bases. The Colorado Energy Office just purchased 70 bikes for its employees and a Broomfield aerospace company bought 34, he said.
Fischer said corporations are attracted to FattE because it’s high-quality, local and partially woman-owned. He owns the business with his wife, Victoria Brunner. The couple launched the business in 2017. Bikes are made in a facility at 2596 W. Barberry Place in the Sun Valley neighborhood.
Fischer said it also helps that Colorado passed a bill this year that covers a portion of alternative transportation, like e-bikes, that employers purchase for employees.
Bikes range from $2,000 to $3,000, which in part is why Fischer is switching the business model. He said larger chains can sell bikes in the $1,200 range, which is fully covered by the city’s rebate program.
Denver launched its rebate program last year to get more people out of cars. Depending on income, Denverites can receive vouchers between $300 and $1,400 to purchase an e-bike. The state launched a similar program in August.
“The greatest disruptor to any industry is free product,” Fischer said. “Our city and state is inadvertently directing people towards free e-bikes by having a rebate that is the same quantity and value of cheaply made bikes.”
Last year, Fischer estimated he received over 100 bike orders from the rebate program. This year, he’s received less than 10, he said. While FattE was able to pivot and take a new path, Fischer said he worries how other local companies will survive.
“We all did great, then they allowed cheap brands, and the faucet was turned off cold,” he said. “I don’t blame the rebate or the city. They started out with the best intentions, however, it’s important to bring in all key players to understand where things are going.”
Over the summer, Fischer spoke with BusinessDen about battling thefts of bikes from his shop, saying he had at times taken to sleeping in his facility overnight to confront would-be burglars.
