- Entertainment
ByGarrett Ettinger
With greater attention to our carbon footprint, more people than ever are using bikes as their main mode of transportation. While biking still pales in comparison to how many people use cars in the United States, it's grown from under half a million people in 2000 to 786,000 in 2019, according to The Bike Advisor. Bike shares and e-bikes have also increased the adoption of the two-wheeled mode of transport, with cargo e-bikes serving as an important tool for delivery drivers across the country during the global pandemic.
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However, delivering takeout isn't the only thing cargo e-bikes are good for, and the founder of Bunch Bikes, Aaron Powell, set out to convince the Sharks of this in season 12 of "Shark Tank." Rather than storing groceries, Bunch Bikes aimed to bring e-cargo bikes that transported children and pets to mass audiences.
As one of the happier episodes in "Shark Tank" history, Bunch Bikes would become an even bigger company after its appearance on the show. As the company was started from one person's passion, it's quite impressive and one of the more successful businesses to grace "Shark Tank."
What happened to Bunch Bikes on Shark Tank?
Aaron Powell debuted on "Shark Tank" season 12 in 2021. He boasted a new electric cargo bike marketed towards families with children. While the Sharks seemed impressed initially by Powell and Bunch Bike's $2.7 million in sales, investors quickly started dropping once he explained the numbers behind the business.
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As a premium option, Bunch Bikes was at a fairly high price point, especially in 2021, as families were just starting to recover from the effects of the global pandemic. The base model of the bike would cost consumers $4,295, with the premium version costing $6,000. According to Powell, production and shipping costs for each bike were $2,917, leaving room for a decent margin on the product.
He would seek $250,000 for 10% equity in the company. All but one Shark, Barbara Corcoran, would be interested in the deal. Eventually, they would land on a deal that would include a $100,000 investment plus a $150,000 loan for 15% equity in the company.
Bunch Bikes actually caught two Sharks after the show
In one of the more interesting turns in "Shark Tank" history, Bunch Bikes was actually able to land another investor in Robert Herjavec, but after the show aired. Eventually, both Herjavec and Barbara Corcoran would invest in the business, splitting the deal 50/50. Later, the exposure from the show would trigger a deluge of orders immediately after the episode aired.
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As is the case with other "Shark Tank" episodes, it seems like the exposure the show provided helped push sales. This would eventually equate to over $1.8 million just a little over a year after the episode premiered. According to a Fox interview, the relationship continues today, with Aaron Powell recently traveling to New York City in 2023 for a networking event for entrepreneurs hosted by Corcoran.
Bunch Bikes also landed a deal with Lucca & Livvy, a premium beverage company that sells nitrogen-infused juices and coffees. The company would use Bunch Bikes in operations, eventually purchasing a total of 500 bikes. This would amount to approximately $2 million in sales.
Bunch Bikes recalled preschool bike due to lead paint
One of the more recent controversies the bike company has faced is a lead paint recall from the United States Consumer Product Safety Commission. According to the organization, The Preschool Electric Bicycles made by Bunch Bikes contained levels of lead that exceeded federal lead paint guidelines and posed a toxic hazard to young children.
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This would affect around 150 bikes, with the recall going into effect on May 25, 2023. According to Bunch Bikes, they have reached out to 81% of purchasers and are trying to get in contact with the remaining owners to replace the recalled parts. As it appears, Powell and the company are making their best effort to keep consumers safe after this serious mistake.
Bunch Bikes is still in operation today, with the price of its The Original 3.0 Electric Cargo Bike being just a bit more expensive than it was when the show originally aired at $4,865. In addition to providing its e-bikes to families across the country, the company also makes a concerted effort to offer adaptive seating and discounts for those with special needs. It also offers special discounts for specific professions, like educators and healthcare workers.
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