This Updated Take on the Bike Chain Wants to Make the Multibillion-Dollar Light e-Vehicle Market More Efficient and Affordable

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The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.

As consumers around the world become more eco-conscious, alternatives to gas-guzzling cars are seeing a surge in popularity. Individual e-bike sales rose 116% in the United States last year, even as the pandemic disrupted nearly every industry. About 650 cities around the world are helping speed up this trend by implementing shared micro-mobility services, including e-bikes, e-scooters, and other light electric vehicles (EVs). 

The trend is drawing major investors like Alphabet Inc. GOOGL and Bain Capital Ventures BCSF, which recently participated in a $170 million investment round led by Uber for JUMP, its micro-mobility brand. It has also encouraged major manufacturers to develop all-electric vehicle lines like Harley-Davidson Inc.’s HOG launch of Serial 1 Cycle Co., its new e-bike brand. 

As cities work fast to add new cycle lanes and lower speed limits to accommodate the growing number of light EVs on urban streets, the global market for these more eco-friendly, efficient modes of transportation is poised to reach $644 billion by 2028, according to market analysts. 

Despite optimistic projections, costs and inefficient design features are preventing some people from relying on these vehicles as their primary source of urban transportation. Veer is a company that has designed a new carbon-fiber belt drive to replace outdated metal chain drives on bikes and light EVs to try and address these issues. Here are the problems the light EV market is facing and how Veer says its Split Belt is trying to solve them.

Cost and Inefficient Designs Slowing Light EV Adoption?

While e-bikes do offer a more eco-friendly, healthy, and convenient way to commute in a city, cost and safety can be a major concern making some potential e-bike riders hesitant to buy. Light EVs range from a few hundred bucks at the low end up to $3,500 or more for a premium model. The increased power from electric motors can also lead to more chain failures, which can be very dangerous in city traffic.

Veer says that after the initial purchase, traditional metal chains can come with seemingly hidden, but additional maintenance costs. They typically should be cleaned, lubricated, and inspected every 300 miles to prevent wear, breakage and rusting. Even with regular lubrication, they might only last about 3,000 miles and will need to be replaced multiple times throughout the life of the vehicle. 

Many light EVs, like e-motorcycles and e-scooters, lack gears, which means riders can’t change gears to accommodate hills or speed changes. This can make for an inefficient drive system that requires a bigger battery, larger motor, and more time charging between rides. 

All of this can lead to higher production costs, higher ongoing costs for the consumer, and a less convenient transport option resulting from less efficient designs. Veer believes it can address all of those issues with a simple fix that both manufacturers and consumers can use.

How an Updated Bike Chain Could Solve These Problems

Veer’s Split Belt is a carbon fiber belt drive that fits on existing bike designs, as well as OEM Bike manufacturer’s bicycles, and can easily be adapted to fit on e-scooters and e-motorcycles. The after-market solution can be bought and installed by consumers who already own bikes or EVs with the traditional metal chain drive that has been the industry standard for more than 100 years.

By ditching the metal chain, Veer says the Split Belt offers a more efficient, lower-maintenance option. Carbon fiber belts don’t require lubrication or cleaning. They also can last up to 30,000 miles and are far less prone to breakage or other problems that create safety hazards and higher costs for consumers. “A broken chain almost killed me riding into an intersection, causing me to crash in the middle of traffic. I never want someone to experience that. This is one of the reasons why I invented Split Belt” says Sean Hacking, founder and CEO of Veer. 

In the future, for bicycles as well as other light EVs, gear changing will be built directly into the drive system, allowing riders to adjust gears when going up or down hills and generally improve the range and performance of their vehicle.

When manufacturers build vehicles with the Split Belt and multiple speeds already included, they can create lighter-weight designs with smaller batteries because gears keep the motor running at its optimum speed. Smaller batteries and motors means lower production costs for manufacturers which leads to lower sale prices for consumers. “Our goal is to increase ridership as urban transportation evolves. If we can lower the barrier of entry for the masses by decreasing price, increasing safety, and increasing vehicle lifespan, we can reshape how people get around as cities become more congested”, says Hacking.

Veer details that as it works to meet growing demand and increase the rate of adoption of its new carbon fiber belt technology, especially among manufacturers, it has also launched a crowdfunding campaign to raise additional capital to support its growth and ramp up production.

The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.