Chris Nolte has been a key figure in the ebike industry for over a decade, founding Propel Bikes and playing a major role in shaping US policy on ebikes. After stepping back from Propel, the company is now run by his sister Cat Strain. Nolte achieved important successes in court that led to more liberal laws in the city of New York regarding ebikes. Today, Propel Bikes has a store in New York City, a warehouse in Brooklyn and two locations in Long Beach, California and Wilmington, Delaware. The company has made a name for itself in particular in the field of e-cargo bikes.
After stepping back from Propel, Chris co-founded Bloom with Justin Kosmides to focus on reshoring and optimizing US-based manufacturing and logistics for the light electric vehicle industry. From their base in Detroit, the Bloom duo wants to reintroduce the local bicycle industry to the US and give it more economic significance. In an exclusive interview, Chris Nolte explains how they plan to achieve this, why Bloom has the entire micro-mobility sector in its sights and what significance ebikes have in the US.
Chris, what exactly do we understand by Bloom?
Bloom was founded to strengthen the hardware industry in the US by leveraging existing domestic manufacturing and logistics infrastructure. We want to build an ecosystem that connects existing facilities – many of which serve the automotive and aerospace industries – to the mobility and electric hardware sector. Such potential partners already exist all over the US. However, they don’t make bicycles, but other, very similar products. Some of the companies would very much like to get involved in the bicycle industry.
On your website, you also mention services related to warehousing and logistics.
Exactly, we also deal with that, specifically for the bicycle industry. For example, we can offer rudimentary assembly. The customer may still have to finalise it, but it eliminates a step for them. Many companies in the mobility industry do their own warehousing, but don’t want to. In that case, Bloom can be an interim solution. Even with options like “no box delivery”.
What is Bloom’s basic orientation?
We basically deal with everything smaller than a car, including microcars and similar vehicles. After all, it is not clearly defined who manufactures such a product. Is it more of a bicycle manufacturer or better an automobile manufacturer? We fill this gap and support these types of products. One advantage is that regulations for such vehicles and thus their development in the US are currently characterised by more freedom. Hardly anyone in Europe is familiar with an electric cargo scooter, for example. Here you see them on the streets. You use a throttle on them. Do you still need pedals then? If not, what does that create then? And how does that fit into the bicycle infrastructure? We would like to actively shape the opportunities that arise from this.
This shaping should later lead to concrete production orders for local factories. What is the current situation regarding ebike production in the US?
Just three per cent of ebikes for the local market are actually built here. In comparison, in Europe the figure is more than 60 per cent. That’s a dramatic difference. And it’s one reason why the bicycle lobby has a relatively weak standing in the US. The bicycle industry lacks strong policy support, in part because domestic production is limited. Expanding US-based manufacturing could strengthen the industry’s influence. Especially compared to the automotive industry. If the share were larger, politicians would probably be more likely to make decisions in favour of bicycle traffic. That was one of the reasons why I wanted to start a company like Bloom.
What excites you about the new role?
Definitely the hope of being able to shape the industry more comprehensively than before and make a bigger contribution to all the brands in the industry. At Propel Bikes, I was only able to work with a few brands. More generally, I like to be involved in conversations about regulation, about standards, about how we develop these systems and protocols to really support the growth of the industry in a more sustainable way. But we will only reap the benefits if we manage the transition away from boom-and-bust growth and towards a more sustainable model.
What will change in the bicycle industry in the US over the next five years?
I expect a growing share of assembly in the US. The same applies to component manufacturing. Perhaps frame manufacturing will be added as well. I think we will see more innovations, new materials and new technologies. Similar to Moustache, which manufactures cast frames in France. Who knows, maybe additive manufacturing will become more and more profitable.
In which areas might we see the first concrete results of this?
I see a lot of promise in certain niches. For example, in specialised bicycles for people with disabilities, like the ones Van Raam offers. And in segments like e-road bikes, e-gravel bikes and e-cargo bikes, there is still a lot of potential for growth. In New York City, for example, a bike and trailer combination can be up to 16 feet long. Actually, Bloom is currently supporting a company that manufactures such an ebike. Its loading capacity is an incredible 350 kilograms. Pretty impressive. Traditionally, we are quite strong in areas such as software, AI and machine learning. More innovations could also come from this direction in the future.
In your opinion, what is the current situation regarding ebike riding in the USA?
I think we’re on the right track. In urban areas, more and more people are discovering ebikes as a great choice for commuting to work. At the same time, more and more bicycle infrastructure is being created. It will be crucial to add secure bicycle parking. As well as sufficient opportunities for charging batteries. If we can do that, the upswing will continue.
What are the remaining hurdles?
Well, in the US, ebike leasing is still in its infancy. In Europe, on the other hand, it has long since become a major part of the business. In the US, gaps in financing, insurance, and consumer awareness have slowed adoption, but there’s strong potential for growth. And the many low-cost products worry me. I fear that many people will buy such ebikes, ride them for a while and then say goodbye to them because they enjoyed them in some ways but didn’t really find them satisfactory. If they then upgrade to something better, that’s fine. But if they say, ok, I tried an ebike and now I’m going to switch back to the car, that would be disastrous.
What is the difference between the US and European markets at the moment?
Some people in the US think it’s crazy to use a bike, even if they only have to go half a mile down the road. We often still consider the bicycle to be a status symbol. Unfortunately, not a very positive one. It is rather associated with the question of whether you can’t afford a car? Many people love cycling. But a bicycle would never come into question as a means of transport for them. Although, things are starting to change in cities. People there are increasingly recognising the advantages of ebikes. Those who think ebikes are weird are seen as a bit more of an outsider than they used to be. Another big difference is the price. In the US, the market is currently dominated by ebikes that cost $1,000 or less. This segment accounts for around 80 per cent of the market. In Europe, the average price is likely to be closer to €3,000.
With these micromobility companies, Bloom is already cooperating
What can be done to make ebikes more popular in the US?
Safety for you and your parked ebike is one of the most crucial factors. Infrastructure that has been properly thought through. Some municipalities wonder why no one uses their newly built bike paths. Because they lead to nowhere. Or are not well coordinated with the use of other means of transport. Incentives such as government bonuses are not bad. But you can’t really rely on them. I feel good about leasing. That could work for a larger part of the population. You can support other people through bike sharing or bike libraries.
What are bike libraries?
A city or non-profit organisation purchases bikes and lends them to private individuals. The loan period can range from a few days to several months. Often for a small loan fee or completely free of charge. Bike libraries promote the acceptance of ebikes by enabling people to try them out in their everyday lives with very little risk.
Do such bike libraries also lend class 3 ebikes, which, analogous to the speed pedelecs in Europe, do not have a throttle and support speeds of 45 km/h?
Yes. Unlike in much of Europe, they are quite popular here. Partly because their use is less strictly regulated. For example, you don’t need a license plate and so on. This is an important category for the bike industry. It brings people to ebikes who would otherwise consider bikes too slow.
Chris, thank you very much for the conversation.
Pictures: Bloom Inc.; Civilized Cycles Incorporated; Cometworks SAS; Dust Moto Inc.; Fries, Radlbeck, Schwarz GbR; New Lab LLC