Following the bankruptcy of electric motorbike startup Cake, Florida retailer Michael Joyce has acquired its remaining Cake's U.S. inventory, partnering with Bloom to navigate the challenges and sustain the brand's presence.

In a surprising turn of events for the electric vehicle industry, the future of the bankrupt electric motorbike startup Cake remains in limbo. However, a significant portion of Cake’s U.S. inventory has found a new home with Michael Joyce, a retailer in St. Petersburg, Florida. Joyce, the owner of Emoto, has acquired all the Cake Makka and Ösa motorbikes along with accessories and spare parts previously shipped to the U.S., excluding the Cake Kalk models due to their recall for safety concerns.

Reviving Cake’s U.S. Presence

Joyce aims to sustain the Swedish brand’s presence in the U.S. by providing continued support and confidence to consumers. His efforts are not solitary; he collaborates with Bloom, a Detroit-based startup, to manage the warehousing and nationwide distribution of the inventory. This partnership marks a unique adaptation strategy within the electric vehicle sector amidst Cake’s bankruptcy.

The Shock of Bankruptcy

Cake’s financial downfall came as a shock to many, including Joyce. The company’s bankruptcy early in February, after unsuccessful attempts to secure a Series C funding round and potential partnerships with major industry players like Harley-Davidson, has left retailers like Joyce in a precarious position. By purchasing the remaining inventory, Joyce secures a lifeline for his business, Emoto, granting him a buffer to explore new partnerships and expand his product offerings.

Strategies for Success

Despite the challenges, Joyce is optimistic about selling the acquired Cake inventory, attributing his confidence to a refined sales and marketing strategy developed over the past year. Transitioning to a consignment model significantly increased customer engagement and sales by allowing potential buyers to experience Cake’s motorbikes firsthand in his retail space. This hands-on approach has proven effective, with sales numbers reaching into double digits monthly.

Partnership with Bloom

Finding a solution for the logistical challenges posed by the sudden acquisition of inventory, Joyce connected with Bloom. The startup offers comprehensive support services to electric vehicle startups, including manufacturing, delivery, and logistics, aiming to alleviate the operational burdens faced by companies like Cake. This partnership represents a pioneering approach to addressing the electric vehicle industry’s challenges through collaboration and shared resources.

Looking Forward

As the inventory makes its way to Bloom’s facilities in Detroit, this venture stands as an initial trial of a new business model that could redefine the electric motorbike market. Joyce’s vision extends beyond merely selling off the existing stock; he aspires to establish Emoto as a premier electric motorbike showroom. Should Cake find a path to recovery and restructuring, Joyce is eager to maintain his partnership with the brand, underscoring his commitment to supporting the electric vehicle industry’s evolution.