From 1968 to 1973 Schwinn produced what became known as the Krate Bicycles. They came in what was referred to as seven flavors: Apple Krate (red), Pea Picker (green), Orange Krate (orange), Grape Krate (purple) Gray Ghost (gray) and the Cotton Picker (white). This model was least favorite among children and was known as the Lemon Peeler. Schwinn's famous Cantelever Frame is present again in this model along with the Knee-Action Front End. Other features include the five-speed derailer system on the rear, a stick shift, which includes a buffer device making it easier to change gears, the spun aluminum drum brake (like on father's automobile), a 16" silk front tire, 6 volt generator to the rear which ignites the tail light and headlight, a speedometer and odometer. The ape hanger handle bars went along with the banana seat design and shock absorbers which were inspired by the drag racing community. Kids learned rapidly to pop "wheelies" and ride them through their neighborhoods, hardly letting the front wheel touch the ground.

In 1964 Ralph Nader wrote, "UNSAFE AT ANY SPEED" which sparked a movement to strengthen safety features for American consumers. In 1971 Nader's Raiders set their sights on the Bicycle Industry and the first thing to go was the stick shift whose knob could come off, presenting a sharp hazard for bicycle wrecks. After 1971, all bicycle pedals came equipped with reflectors.