 Hey, welcome back everybody. Jeff Frick here with theCUBE. We're in Reno, Nevada at the Reno Convention Center. It's InnerBike 2018. I think it's like 20,000 people. Haven't got the official account yet, but this has been an amazing show. It's all about bicycles. We came because we want to learn more about e-bikes and really this kind of last mile thing that's going on, mobility. And right at the center of the e-bike revolution is a company that's been around forever. And that's Bosch. And we're happy to have Jonathan Winder. He's a sales and marketing manager for the Bosch e-bikes. Jonathan, great to see you. Great to see you, Jeff. So I don't know if everybody knows. You guys power like half of all the e-bikes that are out there. You guys are completely in bed with all these manufacturers with really the industry leading system. Thank you. Yes, the Bosch e-bike system, you'll find it worldwide on about 70 different bike brands throughout the world. Here in North America, we're on about 30 different brands from Trek to Electra to Cannondale. And they power all types of bikes. So commuter bikes, cargo bikes, fat bikes, mountain bikes, any type of bike that you can think of can use the Bosch e-bike system to amplify the rider's power and help you go further, higher, farther, less sweat or sweat it out, whatever you want. Right, it's like the magic power. So the magic carpet ride. The make-up components are you got the drive unit which is really the heart of the system, the battery obviously to provide the power, and then the control unit that's up on top of the handlebar so you can control it. Exactly. So we were talking before we turned the cameras on, I'm kind of the history. You guys have been at this for like nine years, I believe you said. Exactly, yeah, we invented this system nine years ago. It was a combination of technology from our automotive business. So an electric power steering motor married with technology from our power tools business, the lithium-ion battery pack. And we also had some sensors, torque sensors and electronics. And we put these technologies together and the engineers back then, what they wanted to do is create something to make cycling still feel like cycling but help you conquer hills and go farther and use the bike more. Right, it's pretty interesting because there's a whole lot of data that's feeding that software and the algorithms to make those feedback loops smooth, make them feel like bicycling. So it's really your riding on software. Exactly, you're riding on software and we have three sensors that are capturing your input. Torque sensor from the pedals, how fast you're pedaling and wheel speed. And those three sensor measurements go into the electronics and tell the motor how much extra oomph to give you. Right, but you have to be pedaling, right? It's always one of the inputs. Exactly, these are all pedal assist e-bikes and they only assist you when you pedal no throttle and they can assist you up to 20 miles per hour or 28 miles per hour for our speed system. Right, we saw that last night in the Gazelle, they had one of the 28 mile an hour bikes. Yeah, which is great for people that have long distance commutes or they want to do these huge adventure rides. So yeah, both are great. Now what about the maintenance for these types of system? I mean, it looks like a pretty close system. It is totally closed, yeah. It's totally closed. Yeah, the maintenance, they last a long time. They're warrantied for two years but if you have a problem with anything and you take it to the dealer, the dealer takes the component off sends it to Bosch and gives you a new one. You don't have to open anything or solder anything. Right, right. Yeah, no, it's automotive grade sort of service and diagnostics. So the other thing we're seeing all over the show flow here again is all about the data. There's so much more data available to the riders. We're just at the Garmin booth and I don't know how many different data sets that they can track in terms of your pedal pressure and whether you're tipping back and forth, whether you're even. And you guys are actually pulling some of that external data back into your systems, right? For a unified experience for the rider. I think you said a heart rate sensor for instance. Exactly, that's the newest feature that we are showcasing at InnerBike today. The Kiox display, which connects man and machine or woman and machine. You can wear a heart rate monitor and as you're riding, you can see your heart rate on your device which is great if you want to train on any mountain bike. Sometimes you want to keep your heart rate in a certain range. Sometimes you want to make sure it doesn't go above a certain limit. Right. Yeah, so it's our first step into connectivity. Many more connectivity features will follow. Right. So I'm just curious from your perspective on the bike industry, because you sit in kind of this cat bird seat since you deal with so many different types of bikes. And I was amazed at how much of the mountain bike adoption of the e-bikes is happening here. Have you seen within your dealers kind of this new opportunity to leverage electronics and a motor to kind of reinvigorate the brands, reinvigorate the models, and reinvigorate many of the, just a wide range of cool form factors that we're seeing all over the floor. Yeah, so, yeah, nine years ago, Bosch coupled with Hi-Bike. Hi-Bike sort of created this segment of e-mountain biking by putting the motor in a unique way into the bike. And since then, this e-mountain bike trend has really taken off. It's huge in Europe. You'll see e-mountain bikes all over the ski resorts there. They're allowing families to ski, to e-mountain bike together, to bike together, just like they ski together in the winter. So it's reinvigorating ski resorts. And we see ski resorts here in the US also embracing e-mountain bikes. Mammoth Mountain just, they allowed class one e-mountain bikes on all their bike park trails. So e-mountain biking is really spreading through this resort and other resorts. North Star, right down the mountain, right up the road. And I wonder on the city side, again, lessons we can learn from Europe, because it seems like the regulations are, they're always a little bit behind the technology in terms of, how are e-bikes treated? Are they a bike? Are they a motor vehicle? And I know there's some laws, but it still seems a little bit confused. And cities aren't quite ready to realize that an e-bike is better than a car in terms of so many things happening in the city. Are you guys involved in that? Are you kind of industry consortium and how do you see that evolving? So we've been involved with several other bike companies and people for bikes to create a framework how to regulate e-bikes. And we've divided e-bikes into three classes, class one, two and three, pedal assist, throttle. Anyway, setting up this definition of the three classes of e-bikes, we've created this e-bike law in California and nine other states throughout the country. So now they know how to regulate e-bikes in these three classes and they can limit where each class can go on the roads. And with this regulation, we're seeing the e-bike adoption in these states really start to pick up now that they're easier to regulate. Right. Well, Jonathan, really a cool story and it's been really fun to watch, boss, especially as you guys have gone from your long history in the auto parts world to this new exciting space. So thanks for taking a few minutes and congrats. Oh, my pleasure, Jeff. Thank you. All right, he's Jonathan. I'm Jeff. You're watching theCUBE. We're at Interbike in Reno, Nevada. Thanks for watching. See you next time.