Clicking on a button and getting anything delivered at home in a few minutes, hours, or days changed the way consumers shop and the face of retail. But behind this convenience, delivery workers – especially those from the gig economy – are spending a much too significant share of their revenues on gas. The last-mile delivery services are costly, polluting, and put workers in tight financial situations.

Sunryde is trying to ease the burden on independent delivery drivers by renting them a solid, functional, clean electric bike. We reached out to Arkadiy Okhman, founder and CEO of Sunryde, to learn more about his strategy to take cars – and costs – out of the streets.

Funding Round Details

Sunryde logo
Company: Sunryde
Security Type: Equity - Common
Valuation: $6,500,541
Min Investment: $498
Platform: StartEngine
Deadline: Sep 13, 2023
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In your own words, how would you describe your company?

Sunryde provides affordable and environmentally friendly cargo electric bikes and scooters for rental purposes, catering to delivery tasks and personal transportation needs. Due to traffic and parking issues, traditional car-based delivery methods can be costly and time-consuming. By offering an e-bike subscription model, Sunryde enables drivers to embrace a modern and cost-effective mobility solution, saving over $650 monthly on car maintenance. We aim to reduce carbon emissions and alleviate road congestion by encouraging people to utilize our e-bikes for efficient last-mile delivery.

What inspired you to take the leap and start this company?

During the COVID pandemic, I worked as a food delivery driver for Postmates and DoorDash for a year and a half. Throughout my experience, I encountered various challenges related to maintaining my car, such as high fuel costs, frequent maintenance needs, traffic congestion, and difficulties finding parking. As a result, I decided to develop an innovative transportation solution that could help reduce overhead expenses and bridge the gap between vehicles and drivers in the last-mile delivery sector.

Who is on your team and how did you come together?

We have a highly skilled and experienced team of innovators, entrepreneurs, and designers. One notable member is Mike Jacobs, who has been a close friend and a valuable board of directors member for the past four years. Mike brings a wealth of knowledge and expertise, having had successful exits as a food technologist and being the founder of Kitchen Data Systems, Nextbite, and Tapin2. Another key team member is Nicholas Burton, our Lead Engineer and Technician. With over 10 years of experience in the micro-mobility sector, Nicholas has previously worked at Bird Scooters, Wheels Bike, and Link Scooters. We found Nicholas through Indeed two years ago, and since then, he has made significant contributions to our company, particularly in the scooter division.

How can delivery drivers adapt their work when they switch from working with a car to working with an e-bike?

When delivery drivers switch from working with a car to an e-bike, they can experience several benefits. These include: 1. Cost savings: E-bikes are more fuel-efficient and have lower maintenance costs than cars, resulting in significant cost savings for delivery drivers. 2. Environmental impact: E-bikes produce zero emissions, reducing air and noise pollution and contributing to a cleaner and greener environment. 3. Improved agility and accessibility: E-bikes can navigate through traffic more quickly, allowing delivery drivers to reach their destinations faster and access areas that may be challenging for cars. 4. Health and well-being: Riding an e-bike provides physical exercise, promoting better health and fitness for delivery drivers. 5. Parking convenience: E-bikes require less space for parking, making it easier for delivery drivers to find parking spots and avoid parking-related challenges. The switch to e-bikes can enhance efficiency, reduce costs, and have positive environmental and health impacts for delivery drivers.

Why would delivery drivers choose to rent e-bikes or scooters instead of buying their own? Do you ever let drivers buy your bikes?

Delivery drivers may choose to rent e-bikes or scooters instead of buying their own for several reasons. Renting provides flexibility, as they can use different models based on their specific needs or the type of delivery they are making. Renting also eliminates the upfront cost of purchasing a vehicle, making it more affordable for drivers who may not have the financial means to buy one. Additionally, renting includes free maintenance and repairs, relieving drivers of those responsibilities. Yes, we also offer Rent-to-Own packages or direct purchases for $3000.

How do you protect yourself against theft, loss and damage of your e-bikes and scooters?

As we do not provide insurance coverage, we have a mandatory policy that requires drivers to sign a rental agreement and release form. This form states that in the event of theft or loss of a bike, the driver is responsible for reimbursing Sunryde $3000; for a scooter, the amount is $750. Additionally, our equipment is equipped with GPS trackers, allowing us to constantly monitor their location, our stolen/lost recovery success is 94%.

What is your traction on the B2B side of the business?

We have established partnerships with three delivery companies, namely Duffl Delivery, Handle Delivery, and DroppingBuy. We have signed letters of intent to lease over 1000 Sunryde scooters and bikes to existing customers of Duffl and DroppingBuy. Currently, Duffl has 30 of our scooters, Handle has 15 scooters, and DroppingBuy has 5 e-bikes. Our customer base is expanding, and we continue to grow.

If we speak again in 12 months, which milestones will you have achieved?

We anticipate having a fleet of more than 800 e-bikes and 300 e-scooters in operation across the country, including locations such as Texas and Florida. We are currently in discussions with ChowNow and other delivery and grocery companies for potential collaboration.

We look forward to seeing where Arkadiy and his team take the company. Sunryde is currently raising on StartEngine