On Linkedin, I happened to come across an article by Michael Entner-Gómez who had commented on the bankruptcy of Cake “RideCake.com,” which got me to add my unsolicited two cents.
It pains me to see this happen because I do what I do, to contribute towards businesses from having to go down this failed path by developing a clear and defined brand. Except, like Chinese brands, they all treat what they do as a commodity of who can produce the said product at the lowest price, which is unfortunate.
Before I go, you can read Michael’s LinkedIn post, you can read it here: https://www.linkedin.com/posts/mikeentner_scooters-urbanmobility-ebike-activity-7159560489998426112-CoFl?utm_source=share&utm_medium=member_desktop
Cake 0 Emission AB has entered into bankruptcy on 1 February 2024. Attorney Jakob Callmander, Advokatfirman Fylgia, has been appointed as trustee in the bankruptcy. Sales have been discontinued until further notice. The trustee is working towards a sale of the operations. For more information, see www.fylgia.se/cake-0-emission-ab-i-konkurs/.
– RideCake.com
My “comment section” level of contribution:
I am not familiar with Cake, but I have spent a considerable amount of time contending with Chinese brands that make Cake’s e-bike endeavor look like a million-one other companies, which is something I came across in a myriad of industries from cutlery to automotive, a lot of me too’s.
I also love biking, and you can find me on my bike several times a week. I am also familiar with e-bikes (especially super73) because I had planned on buying one, although I am no expert in this segment. I am merely commenting on this brand and the management team’s lack of focus on developing a clear and defined brand.
If you are thinking Makka (the product name), you might be the only one thinking that.
This company was doomed to fail because:
- Management treated its product as a commodity (nothing about the people behind the brand). Their website says absolutely nothing about the people behind the product, their capabilities, or what they bring to the table (think of how many tech companies cite “ex-Tesla or SpaceX employee,” on their website).
- Unsubstantiated brand name: naming themselves, Cake which implies nothing and contributes nothing to what you can expect from the product or brand. FYI, there is nothing wrong with obscure names like naming a hardware company Apple, but you better define who you are and how you “Think Different (oh, and if you tout that, you better be different).”
- Obscure product names: Makka, Kalk, Aik, Osa, Bukk, WTF. None of it is cohesive or says anything other than haphazard/disorganized as an English speaker.
In Swedish, “makka” seems to mean mate or wife, yet that is not in line with a cake or bakery products, and it may primarily imply you are a dude (male-centric), and your e-bike is your wife? Although, yes, it can be two females, but why go down a path that implies your product has a uniqe or intimate way in connecting the rider to the e-bike, to the extent, that it would be a mate or wife?
You can’t just tout you are different, and you really have to be different.
driven by price
38-42% of the top-selling products on Amazon are from Chinese companies, and no matter what information you put out (marketing), or your product aesthetics, etc, people are only trying to justify to themselves why they should buy the cheapest product possible (I’ve dealt with this when selling $3-6k brake set with a price difference of $800). Cake unfortunately did nothing to deter these buyers from doing that.
a piece of cake
The only thing that saves these businesses is a strong brand where you are clearly differentiating how you are different from the competition, although most brands rely on generic marketing copy or think branding is graphic design. It is that approach, why many companies like Cake crumble to pieces and fail.
