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Welcome to Flywheel, a weekly 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.

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The observation of the week is an interview with Ryan Fishel, Founder and CEO of The Sweet Spot, about bringing ebike leasing to the US. This week’s featured vehicles are two longtail cargo bikes and two commuters.

Observation of the Week

Bringing Ebike Leasing to the US with Ryan Fishel (Founder of The Sweet Spot)

Ebikes are undoubtedly expensive purchases, and even budget vehicles can be significant financial commitments for riders. While buying used or using BNPL services like Affirm or Klarna can make buying micromobility a bit more accessible, the industry is in dire need for better and more flexible financing options when buying new. One popular financing option in the automotive segment is leasing, which allows customers to get access to a new vehicle via affordable monthly payments and frees them of the responsibility of transitioning the vehicle into its second life. Leasing for ebikes is quickly becoming a popular option in European countries like Germany, but we’re yet to see similar financing options here in the US. This week on Flywheel, I had the privilege of chatting with Ryan Fishel, Founder and CEO of The Sweet Spot, about his efforts to bring ebike leasing to the US. Please welcome Ryan:

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Puneeth: “Ryan, it’s great to connect again! I’ve been following The Sweet Spot’s journey and am excited to hear more about how you’re bringing ebike leasing to the US. Let’s start with the basics: How did you get into this space, and what motivated you to start The Sweet Spot?”

Ryan: “Thanks, Puneeth! The Sweet Spot started as a subscription company for bike enthusiasts, including myself and my co-founders. We originally launched the subscription service and partnered with Ventum before the pandemic but ultimately wound that down as we realized that the subscription has a lot of overhead costs. After that partnership ended, we kept brainstorming ways to blend technology with our love for bikes. We received feedback from manufacturers that they were interested in leasing, so, given my background in the bike industry and cars, it made sense to pivot. Now, we’re more of an embedded finance company, similar to Klarna or Affirm, offering ebike leasing directly on product pages.”

Puneeth: “That’s an interesting pivot that seems like a natural evolution. How does your leasing model work, is it similar to automotive leasing?”

Ryan: “Our approach is inspired by the car leasing model. In essence, instead of buying a product outright, you pay for its use over a set period—typically two years—at a lower cost. We underwrite the bikes, manage the lease plans, and coordinate the bike sale at the end of the lease term. The goal is to make high-quality ebikes more affordable and accessible to the average consumer. Through our platform, consumers can access ebikes for about 50-60% of the MSRP over two years, which is a great deal compared to current financing options.”

Puneeth: “That’s interesting, especially as the cost of ebikes, even budget ones, continues to rise. Once the lease period ends, what happens to the bikes?”

Ryan: “We’ve set up agreements with wholesale partners who purchase the bikes at the end of each lease. At the start of every lease, we lock in a residual value with our partners, so when the bike returns, we have a predetermined buyout price. Our wholesale partners include auction companies that purchase these bikes and auction them off to local bike shops, brands/manufacturers that want to recapture their vehicles for their second life, ebike refurbishers/resellers, and some manufacturers as well.”

Puneeth: “It sounds like you’ve built a robust network of offtake partners. What motivates these partners to invest in used bikes? How do you agree upon a residual value before the lease even begins?”

Ryan: “Many of these partners see a gap in the market for quality used ebikes, much like the early days of the automotive industry. For example, one of our partners was formed by former leaders from Kelley Blue Book. They saw an opportunity to create a similar marketplace for ebikes. Their model involves buying the bikes, refurbishing them, and selling them through local shops, which supports the broader bike community. Another partner is an online retailer that focuses primarily on used ebikes, and the third is a manufacturer wanting to expand its used ebike offerings.

As for residual value, it’s determined by a combination of our own data and that of our partners. We use various data sources—Facebook Marketplace, eBay, Craigslist, and other public listings—to establish depreciation curves for different brands and models. Our partners also have their own valuation methods, and we negotiate a blended rate that works for both sides.”

Puneeth: “Could you talk a little more about the residual value curves that you see? Any general rules of thumb or guiding numbers?”

Ryan: “Sure. There are two parts to residual value: wholesale and consumer. The wholesale side is much more stable compared to the consumer side, which can fluctuate almost weekly, especially when new products launch. On the wholesale side, similar to the car industry, values remain much steadier. There are specific brands that hold more value even at the wholesale level, but the differences are generally within a few points. We do see minor fluctuations year over year, but they’re not volitile enough to impact our forecasting.

While I don’t want to get into specific residual value numbers because that’s part of our proprietary data, I can say that ebike values do drop significantly within the first two years. After that, they tend to level off. So, by years three to five, the value stabilizes until it hits a floor, which is around $1,000. It stays at that level for about seven years before dropping further.

What’s interesting is that componentry doesn’t influence the value as much as the brand itself. For example, if you compare a smaller bike brand to a premium one like a Specialized S-Works, the latter will always command a premium, even if the components are the same. It’s often the brand that carries the weight and influences the residual value the most.

There are some brands whose bikes drop only about 10% over two years, which is exceptionally low for the industry. After reaching 50% of the MSRP, the value plateaus and can remain at that level for a long time—sometimes even for bikes that are 15 years old. You’ll find that these bikes often hold about half of their original value, which is remarkable.

On the other hand, some other brands see their value dip to around $1,000 and then stay there before eventually dropping further. The exception I mentioned is rare and is largely brand-driven. It’s less about the materials or components and more about the power of the brand name.

One thing to note is that ebikes tend to depreciate faster than pedal pikes. This is because of concerns over obsolescence and battery quality, much like electric cars. People worry about battery degradation and the technology becoming outdated, even though you’re not likely to use an ebike in the same way you would a car, logging tens of thousands of miles or traveling exceptionally long distances. But those concerns still impact residual values, much like with EVs.”

Puneeth: “You mentioned that you’re agreeing upon a residual value with offtake partners before the lease is even originated, so there’s probably a specific condition they expect the vehicle to be in when they buy it. How do you ensure that the vehicle is actually in this condition? Are there any requirements you place on your customers in terms of maintaining the vehicle and keeping it in good condition?”

Ryan: “The expectation from our customers is similar to what would happen if you lease a car. If it comes back, the minimum expectation is that some basic maintenance has been done. 

We have some brands with which we do have a maintenance schedule, but generally, in two years, it’s unlikely you’ll encounter major problems unless you’re a super cyclist. The expectation is that the bike returns with reasonable wear and tear. Anything beyond that, the customer would pay for, just like with a car lease. For example, if you return your car and one wheel is smashed, that needs to be replaced, or if there’s a dent, you, as the consumer, would need to cover those costs. We have the same terms in our leasing agreements. If a bike comes back completely worn out, the consumer has to pay for the repairs. If it’s beyond repair, the included insurance covers it, but the customer is responsible for the deductible to make sure we are made whole on the asset.”

Puneeth: “Ebike leasing is a fairly well established model in Europe, particularly in Germany. How does the US market differ from Europe, and why is now the right time for this model here?”

Ryan: “Europe’s leasing model often goes through employers as part of a commuter benefit package, which is more embedded in their work culture. In the US, however, people are more accustomed to arranging leases themselves directly with a dealership or retailer, like they do with cars. Our approach caters directly to consumers, offering them flexibility and choice. We think this consumer-focused model will resonate better here, where there's a desire for more freedom and variety.

In terms of timing, one of the most important factors here is the rising cost of quality ebikes. The average price for a decent ebike starts around $3,000, and with tariffs and supply chain issues, prices are only increasing further. At these price points, people are hesitant to buy outright, so leasing offers a way to manage that expense without the long-term commitment or upfront capital costs.”

Puneeth: “How do you select which bikes to include on your platform and which brands to work with? What’s your rough criteria?”

Ryan: “We partner directly with brands and manufacturers, and focus on bikes with an MSRP between $3,000 and $20,000. This range ensures the bikes are of high quality and maintain a sufficient residual value over time. We avoid lower-priced models because they don’t offer the same resale value or margin. We work closely with partners, like Trek and Canyon, to ensure their offerings fit our model.

We also use a data-driven approach to validate which models are suitable. Our technology maps out depreciation curves for different bikes based on our collected data and partners’ input. We then set up agreements with offtake partners who are comfortable with these values, ensuring we’re covered when the bikes come back to us.”

Puneeth: “You mentioned servicing as an additional subscription on top of your lease. Could you expand on that?”

Ryan: “Service is a huge part of making the leasing experience seamless. We plan to offer service plans similar to how car dealerships do, using existing bike shops as our service network. We want to ensure that when someone leases an ebike through The Sweet Spot, they know they’ll have a reliable way to maintain it. In the long run, we want to support local bike shops and integrate their services into our platform, creating a more connected and supportive ecosystem for our customers.

Back when we were a subscription business, we offered a full subscription package that included delivery, insurance, and maintenance (similar to programs like Care by Volvo). While this was profitable, it wasn’t scalable without significant infrastructure investments. By partnering with bike shops and focusing on lease plans with optional service add-ons, we can provide flexibility and scalability.”

Puneeth: “Could you talk about how the business has progressed to date? Any milestones/numbers you can share?”

Ryan: “Sure. We launched a proof of concept in 2022, focusing on regular bikes initially, but quickly pivoted to ebikes due to demand. Our current lease portfolio is roughly $250,000 of bikes. Our standard lease term is 24 months, and the average unit value hovers around $6,000. As we expand, we’re seeing more interest in bikes priced between $4,500 and $6,000, which aligns well with the $100/month lease range that appeals to consumers.

We’ve also integrated our platform with several e-commerce partners like Stromer and Integral Electrics, and we’ve launched pre-orders with Integral Electrics, securing around 70 orders in just four weeks.”

Puneeth: “Amazing, congrats on your progress! So, what’s next for The Sweet Spot?”

Ryan: “We’re expanding our brand partnerships—we started with eight brands and have another 24 in the pipeline, including big names like Trek and Canyon. We’re also developing retail options with local bike shops, ensuring they can offer leasing directly to their customers. Beyond that, we’re building out our tech platform to gather even more data on the secondary market, which will help refine our residual value models and provide actionable insights to better serve our customers and partners. A large component of our mission in getting more people on ebike/micromobility solutions is to take our sales, financial, and telemetry data to enable more affordable transportation services and solutions to our customers, allow our manufacturers to focus on improving their product offerings and production forecasting, and supporting our retailers with data to help stay ahead of sales trends to improve inventory turnover and avoid the constant discounting we’re seeing in the industry right now.”

Puneeth: “Exciting times ahead! Thanks for sharing all these insights, Ryan. I’m really looking forward to seeing how The Sweet Spot evolves. One last question—where can people find more information about your services?”

Ryan: “Thanks, Puneeth! People can find us through our brand partners’ websites—when you select an ebike, you’ll see our leasing option at checkout. We also have a presence at bike shops with select partners, and we’re expanding our retail presence soon. Anyone interested in staying updated can check out our website and sign up for updates. For anyone interested in connecting with me directly, they can connect directly with you or DM me on LinkedIn.”

You can learn more about The Sweet Spot here. This interview has been edited for clarity and length.

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

Featured Vehicles of the Week

1. Heybike Hauler | $700 | Seattle

The Heybike Hauler is a class-2/class-3 budget longtail cargo bike. While it may not have many of the high-quality accessories and other bells and whistles of more expensive cargo bikes, it covers the basics and has a high performance level that far exceeds other cargo bikes in this price range. Its UL 2849 certified powertrain features an 80Nm rear hub motor (controlled by a cadence sensor) and a 672Wh battery pack, and there are mountings for an optional second battery pack. Interestingly, for anyne looking to upgrade or hot rod their Hauler, the vehicle actually has a casing and mounting points for a mid-drive motor conversion kit built directly into the frame. The Hauler has a claimed payload capacity of 440lbs. This is starting to become the expected payload capacity for premium cargo bikes from the likes of Tern, so the Hauler’s capacity (if validated) is a highly impressive and notable claim that few other budget cargo bikes can match. A front suspension fork and plush 20”x3” fat tires make the Hauler comfortable to ride, and hydraulic disc brakes and a 7-speed Shimano transmission give the ebike great handling and acceleration/deceleration. Lastly, the Hauler comes standard with a rear modular cargo rack with mounting points for accessories (“DIY pegboard”), footrests, and a cargo kickstand that make it ready to haul cargo right out of the box. This listing has only been ridden once for the purposes of a review and is listed for almost 50% off the MSRP. Listing can be found here.

2. Dōst Drop | $1,500 | Denver

The Dōst Drop is a reliable class-2/3 step-thru commuter built for long distances. Dōst is an award-winning ebike brand; a Dōst ebike was used to set the Guinness World Record for longest journey by motorized bicycle in 2022, and the Drop was recognized by EBR as 2024’s best value commuter. The Drop features high-performance componentry that’s rarely found on commuter form factors. Its powertrain features a 120Nm Bafang BBS02 mid-drive motor and a 672Wh battery, and there’s an option to install a second 500Wh battery for extended range. While the motor relies solely on a cadence sensor and thereby lacks the more refined feel of a torque sensor, the vehicle does have a shift detection sensor that helps to protect the 9-speed transmission. The high-torque motor, large battery pack(s), and throttle allow the Drop to conquer hills and long distances effortlessly, making it ideal for trekking or heavy-duty commuting. Finally, the Drop has a well-rounded commuting-focused accessory package, which includes a hydraulic suspension fork (great given the vehicle’s 300lbs payload capacity), hydraulic brakes, integrated lights, and a rear rack. This listing only has a mileage of 222mi and comes with the optional second battery pack despite being listed for $750 less than the model’s average resale price. Listing can be found here.

3. Aventon Soltera.2 | $890 | SF - Bay Area

The Aventon Soltera.2 is a budget-friendly class-2 commuter that bridges the gap between affordable D2C ebikes and more premium, dealer-supported options. What stands out most about the Soltera.2 is how upscale it looks for a bike retailing for less than $1.5K. The Soltera.2, with its clean welds, sleek frame, and fully integrated battery, is easily one of the best-looking budget bikes on the market, and its performance matches its aesthetics. Its powertrain features a 45Nm rear hub motor and a 360Wh battery pack, and is paired with a 7-speed Shimano transmission. Pedal assistance is determined by both a torque sensor and a throttle, which is a combination that offers high utility and versatility for everyone from commuters to fitness/leisure riders. The Soltera.2 is also a well-reputed, safe, and reliable vehicle. Its ebike system is TÜV certified in accordance with UL 2849, and the vehicle itself has been rated by Consumer Reports. Other thoughtful details on the Soltera.2 include integrated lights and practical-to-use turn signals that enhance safety. Although the vehicle lacks suspension and only uses mechanical disc brakes as opposed to stronger hydraulic brakes, these trade-offs are reasonable given the Soltera.2’s excellent overall design, solid feature set, and price point. This listing has a mileage of 150mi and comes with a suspension seat post. Listing can be found here.

4. Engwe LE20 | $1,499

The Engwe LE20 is a recently launched class-2/class-3 longtail ebike entering the increasingly competitive budget cargo bike market. Its primary selling point advertised by Engwe is its range - the LE20 has a high capacity battery pack and is capable of fast charging. The LE20’s powertrain features a 75Nm rear hub motor (100Nm mid-drive motor for EU models) that is controlled by a torque sensor and a monstrous 921Wh battery pack. There’s even a model available that comes with a secondary battery. The battery is EN15194 certified, which is a European analog to UL 2849 that is slightly more holistic and covers both mechanical and electrical safety testing. While fast charging capability is mentioned frequently on the LE20 product landing page, what it really boils down to is just a higher amperage charger. While this isn’t a groundbreaking innovation, it’s a nice upgraded accessory nonetheless. The LE20 is yet another cargo bike with a claimed payload capacity of 440lbs, and as such has many of the components that are must haves to maneuver that kind of weight: Hydraulic disc brakes, a 7-speed transmission, a front suspension fork, and 20” by 3” tires. The LE20 began shipping this fall. Listing can be found here.

That’s it for this edition. Thanks again for joining, see you next week!

- Puneeth Meruva