The future of bankrupt electric motorbike startup Cake remains uncertain, but a significant portion of its U.S. inventory has found a new home in Florida. Michael Joyce, the owner of Emoto, a retail shop in St. Petersburg, has made a substantial purchase, acquiring all the Cake Makka and Ösa motorbikes that were shipped to the United States, along with related accessories and spare parts. Notably, the remaining Cake Kalk electric motorcycles, which have been recalled due to battery fire risk and steering column problems, were not included in this acquisition.
Key Takeaway
Michael Joyce of Emoto in St. Petersburg, Florida, has purchased Cake’s remaining U.S. inventory of electric motorbikes, signaling a potential lifeline for the bankrupt startup.
Supporting the Swedish Brand
Expressing his intentions, Joyce aims to support the survival of the Swedish brand through this acquisition. He emphasized the importance of ensuring that consumers maintain confidence in the brand, highlighting his commitment to not leaving them without support.
Collaboration with Bloom
Furthermore, Joyce is collaborating with a new Detroit-based startup called Bloom, which will handle the warehousing of the acquired inventory and facilitate the distribution of the motorbikes across the country. This partnership reflects the adaptive nature of the electric vehicle industry, showcasing efforts to navigate the challenges faced by companies in this sector.
Cake’s Bankruptcy and Efforts to Sustain Operations
Cake’s filing for bankruptcy in early February came after persistent attempts to secure a series C funding round. Despite pursuing partnerships with established entities such as Harley-Davidson and traditional automakers, the startup faced insurmountable challenges following the depletion of venture capital options.
Strategic Approach and Future Prospects
With the purchase of Cake’s inventory, Joyce is optimistic about his ability to sell the electric motorbikes, leveraging a refined sales and marketing strategy developed over the past year. By enhancing the retail experience and expanding customer interaction with Cake’s products, he anticipates a positive sales trajectory.
Partnership with Bloom and Future Aspirations
As the acquired inventory makes its way to Bloom’s warehouse in Detroit, Joyce and Bloom are poised to test a new hybrid business model. Looking ahead, Joyce envisions Emoto evolving into a comprehensive showroom for electric motorbikes, aspiring to emulate the success of prominent powersports dealers across the country.
Continued Support and Long-Term Vision
In the event that Cake restructures and continues its operations, Joyce expresses his desire to sustain a partnership with the revitalized version of the company, underscoring his commitment to the brand’s potential resurgence.
