Pedego, the e-bike retailer that shot to fame with riders like William Shatner and Martha Stewart, is trying to get back in the fast lane with a new owner.
AÂ consortium of investors acquired Pedego and formed New Pedego Holdings Inc., CEO Larry Pizzi told the Business Journal on Nov. 25.
Financial details were not released.
Pizzi said, “Some of the lead investors also hold stakes in the e-bike supply chain and factories and have an interest in the global e-bike brand Urtopia.”
Pedego and Hong Kong-based Urtopia are collaborating on R&D, technology and product development, according to the CEO.
Pedego said it is seeking a “renewal” stemming from the “strategic partnership” with Urtopia.
“This is not a takeover—it’s a renewal,” said Pizzi in an announcement on Nov. 20.
“Together, we’re accelerating growth and bringing customers the world-class products and service they deserve.”
Pedego was acquired from Belgian-based investment group Verlinvest, which held a majority stake in the former Pedego company. Pizzi was also CEO of the former company.
Reclaim Leadership in NA
Don DiCostanzo and Terry Sherry co-founded the company in 2008, and it quickly became the leader in sales, growing 46% annually between 2012 and 2015. In 2016, Navigant Research named it the best-selling e-bike in the U.S.
It had 85 independently owned stores, with a goal of 500 by 2020, the company said on its website at the time.
It ranked No. 5 on the Business Journal’s 2021 list of fastest-growing mid-size private companies, with a two-year revenue growth rate of 181%. It sought to grow from $38 million in 2020 to more than $100 million in 2022.
It faces challenges such as an increasing number of competitors and tariffs on imports from China, where Pedego sources several key components.
“The company I co-founded, Pedego Electric Bikes, has seen first-hand the effects of U.S. tariffs on products imported from China,” DiCostanzo wrote in a 2019 Leader Board for the Business Journal.
“When the first set of tariffs became effective on Aug. 23, 2018, it was a week earlier than expected. Pedego had two containers from China come into port the following day and we paid more than $200,000 in unexpected tariffs.”
Pedego at that time began moving production to Vietnam and Taiwan, he wrote.
DiCostanzo served as CEO until April 2023 and then as a board member until October, according to his LinkedIn site.
CAGR 7.9%
Nowadays, Pedego says it has more than 100 authorized dealers and a “loyal base” of over 100,000 riders. During the pandemic, it had about 220 dealers.
The U.S. electric bike market is expected to grow about 7.9% annually to $4.5 billion in 2034. Global sales are estimated at $54 billion this year and rising 7% annually to $87.2 billion by 2032, according to the MarketsandMarkets research firm.
The industry is fragmented, with competitors like Aventon and Lectric eBikes surging, though their market share hovers around 10% each, while Pedego is generally considered among the top 10. It’s a volatile industry. Rad Power Bikes, one of the nation’s largest e-bike sellers with over 1,000 employees, may cease operations in January, it told the Cycling Electric website.
Pedego says the aim is “to reclaim leadership in North American e-mobility.”
“We’re strengthening Pedego’s foundation with Urtopia’s innovation, maintaining our dealer-first philosophy and community commitment that have made Pedego an American icon,” Pizzi said.
Smart Helmets, Future-Ready
The company says it plans to return to a growth trajectory in 2026, aiming to expand to more than 500 stores within three years and re-establish its position as the largest e-bike retail network in the United States and Canada.
Pedego also plans on introducing smart helmets, connected accessories and future-ready e-bikes—all while serving and growing the U.S. and Canadian rider community.
Urtopia is a smart e-bike company “founded by U.S.-educated engineers and designers from MIT, Cornell University, CMU, and the University of Minnesota,” according to Pedego. Urtopia’s LinkedIn site says it is based in Hong Kong.
Current sale prices for the bikes include $2,495 for the sleek Boomerang, $2,995 for the Pedego Trail Tracker and $3,795 for the Cargo model.
