Peapod Co-Founders and Bay Area Investors Headline Coaster Cycles’ Financing
BOSTON, MA- Today, Coaster Cycles announced personal investments from the co-founders of Peapod, Andrew Parkinson and Thomas Parkinson, as well as Bay Area investors John Lyman and Katherine Kennedy and Grant Allen (SE Ventures) in recent financing. As an already profitable company, the investment will support the expansion of Coaster’s Montana based manufacturing facility as well as the growth of Coaster’s existing rental fleets in Boston, New York City, and San Francisco. The funds will also allow expansion into new markets. It’s all part of an aggressive growth plan that started with a ride from Fenway Park in Boston.
“We began humbly in Boston with only five bikes, but from the start, the vision was big,” said Ben Morris, founder, and CEO of Coaster Cycles. “As cities and technology evolve, we believe a last-mile perfect storm is brewing that requires a solution like Coaster. And that is why, as a high margin and profitable business, it made sense for the Company to pursue outside investor capital. Beyond funding, we are very fortunate to have an engaged and experienced investor group to help us grow strategically.”
Coaster builds and operates eco-friendly mobility products that provide transportation, delivery, and branding services. Built in the USA, Coaster manufactures all models at the Company’s 24,000 sq. ft. facility near Missoula, MT. Enabled by technology and supported by ads, Coaster’s rental fleet provides customers a new way to ride, drive, and connect.
Coaster’s portfolio boasts a robust mix of public and private sector clients including Aramark, Nestle, Pepsi, University of Montana, Lime, UPS, and Uber. Coaster Cycles are offered in two size options. Models can be configured to service a variety of functions such as delivering food and packages, pouring coffee or beer, and servicing scooter and bike-share operations. Coaster Cycles operate in the bike lane, can access areas cars cannot, do not require a driver’s license, and can be outfitted with a variety of integrated technology features like e-assist.
“Having followed closely the incredible growth of online grocery & restaurant food delivery and the constraints of last-mile delivery in congested markets, I believe Coaster, with its talented team, superior products, and profitable business model, will experience explosive growth over the coming years,” said Andrew Parkinson, Co-founder of Peapod. “I’m extremely excited to be part of Coaster’s charge into the mobility marketplace.” Andrew and Thomas Parkinson co-founded online grocery delivery service Peapod in 1989 with $50,000 in seed money from friends and family. They took the company public in 1997 and sold it to Ahold in 2001.
Coaster Cycles cites increased urban congestion (e-commerce related traffic doubled from 2008-2019), the high cost of last-mile delivery, rapid adoption of scooters and other micromobility options (a millennial today is 30% less likely to buy a car), and pressure to adopt sustainable practices as critical factors driving the market.
“With the pressures to reduce carbon emissions around the world and especially in congested cities, Coaster provides a cycle driven alternative to cars and trucks,” added Thomas Parkinson, Co-founder of Peapod who served as Peapod’s CTO until announcing his retirement earlier this year. “Coaster is poised for explosive growth to meet the demands of a nimble and clean transportation alternative for restaurants, retail, and logistics.”
Coaster’s Chief Marketing Officer and Head of Growth, Mike Culver also commented on the Company’s opportunity to scale, “We are in a unique position to be actively building a new segment of the micro-mobility market with our clients and partners. It has been very encouraging to see the demand for Coaster products and services from cities, businesses, and communities alike.”
Moving forward, Coaster plans to continue integrating new technology, supply chain improvements, and operations partners to support accelerated growth.
Coaster Cycles inspires communities and brands to move, connect, and deliver with the world around them. Coaster builds and operates eco-friendly mobility products that provide transportation, delivery, and branding services for a range of clients, including Fortune 500s, governments, universities, events, and retailers. All Coaster models are proudly made in the USA at the Company’s 24,000 sq. ft. facility near Missoula, MT. The Company also operates fleets in Boston, New York and San Francisco and activates ad campaigns nationally. To learn more, visit www.coastercycles.com. Follow us on Social Media – Instagram: @Coastercycles Facebook: @Coastercycles Twitter: @Coastercycles