Issa’s e-bike venture up for sale

Businessman Elias ‘Lee’ Issa wants to sell the dealership for the Ellesco electric bike brand, which he brought to Jamaica in 2021.

“Thriving opportunity to buy ebike and warehouse equipment business,” read a notice from Ellesco published in The Sunday Gleaner.

The company boasts a turnkey operation in a prime location at Ferry in Kingston.

In 2021, Issa said he invested $100 million to set up operations at Ferry. His plans included growing annual sales from 250 units in its initial year to about 1,000 annually by the fifth year.

Issa did not respond to queries up to press time.

When the Financial Gleaner called the number published with the ad, a person who declined to be identified described the business as profitable, but that Issa wanted more time to focus on his other businesses.

Issa holds stakes in the department store Lees Fifth Avenue, four hotels operated under the Couples Resort brand, and other businesses. He is also a property developer.

Bike imports to Jamaica grew to US$6 million in 2023 from US$3.6 million the previous year, according to data from Trademap, a United Nations-owned database for global trade. The 2023 growth, up by two-thirds, outpaced the previous five years, which saw an 11 per cent annual growth from 2019. The data did not disaggregate the proportion of electric versus gas-powered bikes.

Ellesco sells ebikes, bicycles, scooters, and warehouse equipment, such as pallet stackers, and scissors lifts. All its e-bikes use rechargeable lithium batteries. Ellesco ebikes sell for $195,000 plus tax, or roughly twice that of gas-powered bikes. The target market includes techies and fleet companies.

Ebikes have had a slow take up from the food delivery sector, mainly uses bikes for deliveries.

DELIVERY MARKET

The food delivery sector grew during a series of nationwide lockdowns to stem the spread of the pandemic. In 2021, the Government launched E-commerce National Delivery Solution or ENDS to link over 2,000 vendors with delivery riders with customers. The delivery market in Jamaica now has numerous players, but in 2023, it was disrupted when market leader Hugo exited the country. Hugo was acquired by an even larger delivery brand called Delivery Hero, which decided to focus on the Spanish region.

The head of the Jamaica Electric Vehicle Association, Oliver Hill, declined to comment when contacted on whether the market has shifted.

Motor vehicle imports surpassed 19,000 units in the first five months of 2024, up 15 per cent over the previous year, based on data from port operator Kingston Wharves Limited. The breakdown for electric vehicles was not available.

Ellesco’s facility at Ferry in Kingston includes a service and parts centre for its products, which are sold directly to customers at that location.

steven,jackson@gleanerjm.com