Hey!

Welcome to Flywheel, an exploration of owned and used micromobility. Each newsletter will highlight an observation of trends emerging in the industry and feature five of the most interesting vehicles/hardware in micromobility.

If you were forwarded this post and found it interesting, I would appreciate it if you subscribed to Flywheel!

The observation of the week explores California’s new statewide ebike voucher program and how it aligns with the current California ebike market. This week’s featured vehicles are an Indian emoped and two urban commuters.

The next edition of Flywheel will be the 2024 Flywheel Wrapped, which will be shipped in early January 2025. If you have any specific metrics you’d like me to dive into, please let me know by responding to this email or reaching out at [email protected]. In the meantime, hope you enjoy this week’s edition and have a wonderful holiday season 🙂 🎄🎉.

Observation of the Week

California finally launches its ebike incentive program

It’s time. After being delayed more than 2 years, the California Air Resources Board is finally launching its ebike incentive program at 6pm PST today (Dec 18, 2024). California first allocated $10M in its state budget for an ebike rebate program back in 2021, but a combination of staff turnover, questions about eligibility requirements, and other political factors meant that the program was repeatedly delayed quarter after quarter. It’s a shame it’s taken this long given how critical of a role California plays in the US ebike movement and adoption curve. As per the secondary market, ebikes in California are ridden more than those anywhere else in the nation (average mileage of 406.02mi vs. 349.80mi) and California riders generally buy more expensive ebikes (average price of $2,596.84 vs. $2,468.41) than riders in the rest of the US.

Nevertheless, it’s extremely exciting that the program is finally here. At the moment, $7.5M in funding has been set aside for rebates which will be distributed in batches of 1500 point-of-sale vouchers. The first application window is kicking off today, and future application windows will open up every 3 to 4 months. Each base incentive voucher amount is $1,750, and eligible priority applicants that are low income/disadvantaged can receive an additional $250 incentive. The full applicant eligibility criteria:

• Applicants must be 18+ CA Residents.

• Applicants eligible for the Base Voucher must have a household income <300% of federal poverty level, which is ~<$45,180 for a 1 person household or <$93,600 for a 4 person household.

• Applicants eligible for the additional $250 priority incentive must have a household income <225% of the federal poverty level, “live in a disadvantaged community as defined by CalEnviroScreen 4.0, or live in a low-income community as defined by Assembly Bill 1550.”

Before being able to submit a voucher application, the program actually requires all applicants to watch an online video safety training course and a climate impact course. This is an interesting requirement that adds some friction in the process, but I think it’s one that is ultimately worthwhile (particularly for applicants new to ebiking).

The criteria for ebikes that qualify for the voucher program is fairly similar to that of other rebate programs across the country, but there’s a few unique requirements that are noteworthy:

• Must be Class 1-3

• Must be UL and/or EN compliant

• Must have motors with power ratings <= 750W. This is a unique requirement but most class 1-3 ebikes in the market that are UL certified meet this spec.

• Must have battery integrated front lights and equipped rear lights (don’t need to be connected to the battery). This is a unique requirement that is somewhat prohibitive for the traditional dealer-network OEMs that offer bare bones ebikes, but not so much for more commuter-focused newer ebike models. Lighting for ebikes used in urban settings is an absolute must in my opinion.

• Must have at least a 1yr warranty.

• Must be purchase at one of the 354 pre-approved select brick and mortar or online retailers. The addition of online retailers is a great expansion of eligible retailers that many other rebate programs don’t include, and the CA program does so in a responsible way by requiring online retailers have some type of physical presence in California that can quickly provide maintenance support. The full list of eligible retailers can be found here.

• Must be fully assembled and safety checked upon delivery. This is a new requirement that’s been added given that eligible ebikes can now be bought online, and it’s one that I think is really smart given that many ebike safety incidents can be traced back to consumers not having the proper tools and resources to assemble their ebikes on their own.

• A full list of eligible ebikes as of Dec 13, 2024 can be found here.

The voucher can also be used for accessories, assembly, delivery fees, and sales taxes.

The list of requirements for ebikes to be eligible for this program is obviously quite extensive. Looking at the Flywheel Data for California’s secondary ebike market gives an interesting peak into how the voucher program’s criteria aligns with the types of ebikes that are already out on Californian roads today.

About ~34.5% of used ebikes in California are UL-certified, meaning that a majority of the ebikes people have been buying over the past few years wouldn’t be eligible for a voucher. That being said, the brands and models most popular with CA riders are all more or less eligible. The top 5 ebike brands in CA, in order, are Specialized, Rad Power, Aventon, Trek, and Giant (Lectric is a close 6th). All of these OEMs sell ebike models that are eligible for the voucher program. The top 5 ebike models in CA, in order, are the Rad Power RadRover, the Lectric XP 2.0, the Soul Fast Sonic Saber, the Aventon Aventure, and the Aventon Pace 500. Although 4 of these 5 aren’t directly eligible, the XP 2.0. the Aventure, and the Pace 500 all have updated sister models that are eligible.

Applications for the first round of vouchers will be accepted starting at 6pm PST today. If ebike programs in the rest of the country are anything to go by, I expect these first 1500 vouchers to run out fast. If you’re interested in applying or learning more about the program, you can check it out here.

For more observations and resources on owned and used micromobility, check out rideflywheel.com/resources.

Featured Vehicles of the Week

1. 2025 River Indie | $1,800 | India

Announced on Nov 26, 2024, the 2025 Indie is the latest emoped from Indian electric two-wheeler startup (and Trucks VC portfolio company) River. While most emopeds are typically commuter focused, River wants to build the “SUV of mopeds” that is rugged and cargo-focused. The 2025 Indie retails for about $300 more than its predecessor but features several upgrades to the the original version launched back in 2023. The most notable upgrade is a shift to a chain drive system from the previous belt-drive, which is a first in the Indian emoped segment and represents a significant mechanical improvement that gives the Indie higher torque, makes it more durable, and reduces long-term maintenance/repair costs. The powertrain mostly remains the same, and features a 6.7kW, 26Nm rear hub motor (capable of regenerative braking) and a 4kWh battery pack to give the Indie a top speed of 90km/h (~56mph) and an increased range of 160km (~99.4mi) on a single charge. What has helped River stand out in the ultra-competitive Indian 2W EV segment is their vehicle’s exceptional storage capacity. The underseat compartment provides 43L of space and the lockable glovebox provides an additional 12L of storage. Riders can even further expand capacity with an optional 25L top box mounted on the rear rack. The vehicle also includes front foot pegs so that riders can store cargo on the extra-wide floorboard, which can be equipped with a detachable floor cage. Lastly, the rear “Lock&Load” mounts support panniers, ultimately making the Indie unparalleled in storage capabilities compared to other emopeds. Rounding out the Indie are 14” fat tires (larger than most competitors) and dual hydraulic suspension, both of which give the vehicle smooth rideability over rough urban terrain. At the moment, the two leading emoped OEMs in India are Ola and Ather. While both offer more commuter-focused vehicles that are either similarly or lower priced, the Indie’s cargo capabilities make it a compelling option for riders looking for a vehicle that is equally competent for work and leisure. As always, it’s worth reiterating the mind-blowing pricing of Asian two-wheelers. The River Indie retails for ~$1,866, which is roughly the same price as a typical D2C budget class-2 ebike. The River Indie is available for pre-order and deliveries are expected to begin in August 2025. Check out River’s launch video to get an in-depth look at the inspiration, R&D, and design process behind the new Indie. Listing can be found here.

2. Stromer ST2 | $2,000 | SF - Bay Area

The ST2 is a premium class-3 commuter from Swiss luxury ebike brand Stromer. Its powertrain features a 42Nm custom Stromer rear hub motor and an 814Wh battery, providing ample power and range for even them most demanding urban commutes. The ST2 was the first model in the Stromer lineup to include a Gates carbon belt drive, which paired with the 5-speed internally geared hub gives the ST2 an exceptionally smooth riding experience and makes it easy to maintain. Unlike many premium brands that favor mid-drive motors, Stromer uses hub motors in an attempt to make their vehicles easier to keep up and running. Hub motors generally require less maintenance and reduce drivetrain strain compared to mid-drives. Although they lack the smooth extension-of-your-legs feeling that mid-drives offer, I still think that hub motors are the more practical and reliable choice for daily commuting. The ST2 also features an advanced electronics package, including high/low-beam headlights, brake lights, GPS tracking, and support for over-the-air software updates. The bike weighs a hefty 65lbs, which makes the ST2 less portable but gives it a far more sturdy and planted ride on rough city roads. Stromer announced on Nov 20, 2024 that are officially discontinuing their sales and operations in the US and Canada. Bike shops and other distributers will still be able to process warranties and order spare parts from the OEM’s Swiss HQ, but no more new vehicles will be delivered to the US or Canada. This move seemed shocking at first given Stromer’s reputation and popularity in Europe, but it’s ultimately one that makes sense and is illustrative of the differences in ebike culture between the US and EU. US consumers are simply not at the adoption curve yet (if ever) where they’re willing to shell out ~$6K+ for an ebike given the the macroeconomic conditions, the perceived value of ebikes, and the growing number of options in the $1.5K-$4K range that aren’t as high quality but get the job done. Given Stromer’s retreat from the US market, this listing for an ST2 in good condition (Flywheel estimated mileage of 773mi) that is selling for $1.2K less than its average resale price is a timely find. Listing can be found here.

3. Velotric Discover 2 | $1,600 | NYC

Released in late March 2024, the Velotric Discover 2 is an upgraded class-2/class-3 step-through commuter designed for comfort and affordability. Building on the success of the original Discover 1, it includes several highly-requested powertrain and UX improvements. Its powertrain features a stronger 75Nm rear hub motor, a torque sensor instead of a cadence sensor for smoother pedal assistance, and a 705.6Wh battery pack. The powertrain is UL 2849 certified, and the battery pack is UL 2271 certified. Rounding out the drive components on the Discover 2 are a Shimano 8-speed transmission, hydraulic disc brakes, and a front suspension fork, all of which further the vehicle’s smooth and responsive ride that is perfect for daily commuters. Impressively, the Discover 2 has a 440lbs maximum payload capacity. This is not only a payload capacity similar to that of a good cargo bike, it is also one that is validated to ISO 4210 testing standards. Lastly, the Discover 2 has several practical software and electronics features, including integrated lighting, turn signals, Apple Find My tracking, and a USB-C charging port for mobile devices. Velotric is hybrid-style OEM that combines direct-to-consumer (D2C) shipping with a robust network of over 1,000 partner bike shops nationwide, which ensures easy access to servicing while keeping costs low. This listing is in Good condition and has a mileage of 461.2mi. Listing can be found here.

That’s it for this edition. Wishing you all a Merry Christmas and a Happy New Year 🙂 🎄🎉. Thanks again for joining, see you in 2025!

- Puneeth Meruva