Listen to this article 2 min
A St. Petersburg entrepreneur has gained a national reputation after making a deal with Swedish electric motorbike company Cake.
In February, Michael Joyce — the entrepreneur behind St. Petersburg’s e-motorbike store Emoto and a University of Tampa alumni — negotiated a deal for the majority of the inventory of the international venture capital-backed startup, or seven truckloads of stock containing hundreds of motorbikes, spare parts and accessories. The deal has reset the company’s vision and inspired the small storefront to develop plans for a Florida e-motorbike franchise, Joyce said.
“I, at that time, didn’t even understand the impact it was going to have,” Joyce said. “All of this put us on the map and further solidified us as someone in the industry working on a new concept and a new model that is yet to be seen.”
With the new inventory, Joyce hopes to become a retail destination for motorbikes and electric micromobility devices, with the potential to franchise and expand across the state, he said. Since the deal, it has launched sales of several other product lines, like e-motorcycles from Cleveland-based Land Moto.
Previously, Emoto was one of the only authorized dealers in North America for Cake, a 7-year-old brand founded in Stockholm, Sweden. Cake was acquired by Norwegian car dealership Brages Bilforretning AS in February, according to Tech.eu.
Cake made a name for itself through its $14 million in a Series A round in 2019 and $60 million in a Series B round in 2021. New York publication Fast Company recognized the startup as one of the most innovative companies in the world, and a Cake bike was recognized in Time as one of the best inventions of 2021.
As Cake sought a Series C funding round, it ran out of money. Throughout 2023, the startup struggled to find capital amid the tightening in VC, according to reporting from TechCrunch.
The consumer retail space for the micromobility market is fledgling, especially for higher-end or more powerful e-motorbikes, but it has become popular in urban environments. Micromobility refers to electric two-wheeled commuter vehicles, like scooters, e-bikes and mopeds, according to a McKinsey report.
“Ideally, our hope is that the Cake brand lives on, and we want to work with whoever that new partner is, servicing North America, which we’re trying to do now,” Joyce said.
In February, Joyce heard Cake was filing for bankruptcy in Sweden and asked to buy the 15 bikes remaining in the store on consignment. His business depended upon Cake, as the bikes were its sole product.
“If I sold through that, I might be able to start paying back some of the [investors] cash,” Joyce said.
He soon realized the opportunity to acquire the total inventory at a discount, and he closed the week of negotiations in the middle of a Miami restaurant, he said.
The move was supported financially by Brett Morgan, the CEO of one of Tampa Bay’s largest private companies, Morgan Automotive Group. Morgan viewed the deal as a way to support Joyce and his potential to fulfill the company’s vision. The investment was also an educational entrance into an industry with the potential to be an inexpensive, secondary option to car ownership, he said.
“Being in the automotive business, we’re really in the transportation business, so I had a casual curiosity,” Morgan said. “I wasn’t really interested in what [Joyce] was doing until I experienced the Cake product.”
Today, he’s a cheerleader for the brand and micromobility’s adoption, he said.
After the deal, Joyce connected with Detroit-based manufacturing and supply chain logistics startup Bloom to manage the large stock of inventory — something the small storefront was previously ill-equipped to handle.
Justin Kosmides, the co-founder of Bloom, told Tampa Bay Inno the Cake situation matches Bloom’s platform and intentions for expanding and streamlining the micromobility market. The partnership indicates the challenges in the industry — sparse supply chains and budding retail locations — but also how micromobility is developing, he said.
“It goes to show micromobility in the past couple of years, their primary focus has been getting as many products on the road,” Kosmides said. “Now as the industry matures, it’s more important to look at how to operate more efficiently, how to keep vehicles on the road, how to operate in a new world where you need to have a more efficient way of operating your company and getting your products around the country.”