From Roombas to e-bikes, why are hardware startups going bankrupt?
Summarize this article with:
Latest AI Amazon Apps Biotech & Health Climate Cloud Computing Commerce Crypto Enterprise EVs Fintech Fundraising Gadgets Gaming Google Government & Policy Hardware Instagram Layoffs Media & Entertainment Meta Microsoft Privacy Robotics Security Social Space Startups TikTok Transportation Venture Staff Events Startup Battlefield StrictlyVC Newsletters Podcasts Videos Partner Content TechCrunch Brand Studio Crunchboard Contact Us The hardware world had a brutal week, with iRobot, Luminar, and Rad Power Bikes all filing for bankruptcy. Each company faces its own mix of tariff pressures, supply chain issues, and shifting markets, but together they tell a larger story about the challenges of building physical products in an era of global trade tensions and cheap overseas competition. From the Roomba maker that almost got acquired by Amazon to the e-bike company that couldn’t escape its Chinese supply chain, this week’s bankruptcies are a warning sign for hardware startups everywhere. Today on TechCrunch’s Equity podcast, hosts Anthony Ha, Rebecca Bellan, and Sean O’Kane discuss what went wrong for three once-promising hardware companies, plus Amazon’s massive OpenAI bet and Trump’s new approach to AI regulation. Subscribe to Equity on YouTube, Apple Podcasts, Overcast, Spotify and all the casts. You also can follow Equity on X and Threads, at @EquityPod.
Topics Audio Producer Theresa Loconsolo is an audio producer at TechCrunch focusing on Equity, the network’s flagship podcast. Before joining TechCrunch in 2022, she was one of 2 producers at a four-station conglomerate where she wrote, recorded, voiced and edited content, and engineered live performances and interviews from guests like lovelytheband. Theresa is based in New Jersey and holds a bachelors degree in Communication from Monmouth University. You can contact or verify outreach from Theresa by emailing theresa.loconsolo@techcrunch.com. Plan ahead for the 2026 StrictlyVC events. Hear straight-from-the-source candid insights in on-stage fireside sessions and meet the builders and backers shaping the industry. Join the waitlist to get first access to the lowest-priced tickets and important updates. Tech provider for NHS England confirms data breach Google’s vibe-coding tool Opal comes to Gemini Google tests an email-based productivity assistant Hacking group says it’s extorting Pornhub after stealing users’ viewing data Lidar-maker Luminar files for bankruptcy How iRobot lost its way home DoorDash driver faces felony charges after allegedly spraying customers’ food Subscribe for the industry’s biggest tech newsEvery weekday and Sunday, you can get the best of TechCrunch’s coverage.TechCrunch's AI experts cover the latest news in the fast-moving field.Every Monday, gets you up to speed on the latest advances in aerospace.Startups are the core of TechCrunch, so get our best coverage delivered weekly.By submitting your email, you agree to our Terms and Privacy Notice.© 2025 TechCrunch Media LLC.