Owner of Gazelle bikes buys Cannondale, Schwinn for $810 million

stb222

Love Drunk
Jerk Squad
I saw this earlier today. So now Cannondale, Santa Cruz, and GT are all connected. What a time to be alive!!

I think I’ll stick with my boutique bullshit.
Sorry bruh, Evil got bought up too so they can actually have bikes in stock
 

Patrick

Overthinking the draft from the basement already
Staff member
In a booming bike market, one which is global, those recognizable brands are only worth $810M ?
For that price, the competition could have purchased and scuttled the them.

I think we can read into this (or overthink it in my case)
The business model is changing - the entry of direct-to-consumer brands which build on-demand
or warehouse large numbers of limited models will undersell larger brands and make money even with the razor thin margins
using industry std parts.

there are few barriers to entry into the market (other than obtaining parts) right now.

How about a subscription bike service, like a lease, you get a new bike every year or two?
Like the cell phone programs they have, after 18 months you trade in for the new model, get a discount, and keep paying.

Or make the E-bike a subscription service, and you can pay for the boost level?
Remember that the tesla "range" extension option is actually a software limit - not extra batteries.
 

BananaFred

Well-Known Member
Schwinn and Mongoose are brands only at this point. It looks like Cannondale hasn't made frames in the US since 2007.
 

Cassinonorth

Well-Known Member
I think we can read into this (or overthink it in my case)
The business model is changing - the entry of direct-to-consumer brands which build on-demand
or warehouse large numbers of limited models will undersell larger brands and make money even with the razor thin margins
using industry std parts.

All bike companies will be Consumer Direct by 2025 anyway so none of it really matters.

See: Trek.
 

JonF

Well-Known Member
Dave Weagle doesn't build bikes, he licenses his suspension design out to companies that do.
He actually was one of the founders of Evil, but sold it off at some point to pursue other ventures. But his suspension designs are some of the best in the biz for sure. I loved my Ibis and am eager to back into another one (Exie) when they become more readily available.
 
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