In 2022, the value of e-bike sales in the UK hit an estimated £310 million, which is up from just £150 million in 2019. This highlights the exponential growth of the industry and its contribution to the economy. On contrary to this, VanMoof, a Dutch electric bike company known as the “Tesla of e-bikes,” has gone bankrupt.
VanMoof, known for its sleek design and premium pricing, experienced a significant boom in sales during the pandemic. However, despite raising $128 million in 2021, the company’s trajectory took a nosedive, leading to bankruptcy.
VanMoof was founded in 2009 by Taco and Ties Carlier, two Dutch brothers who dreamt up the perfect city bike. The company’s signature S5 bike, marketed as “Perfect for controlled cruising and longer rides,” carried a hefty price tag of nearly £3,300. With many components being proprietary, repair and maintenance of these bikes also proved challenging and potentially costly, as regular bike shops were often unable to service them.
Oliver Montague CEO and co-founder of Swytch commented, “After the news of some big players within the e-bike industry struggling or even going bankrupt, some are wondering whether the e-bike boom we saw during the pandemic is coming to an end. I don’t believe this to be the case – this societal shift was also driven by a number of other key factors which remain relevant today, such as a desire to live more sustainable and healthy lives, evident in the persisting popularity of e-bike rental schemes seen across cities in the UK.”
What does it mean for buyers and users?
If individuals had planned on purchasing a VanMoof bike or had recently placed orders for their bikes or bike parts, they are out of luck as the company has ceased all outgoing deliveries. Also, the resumption of deliveries remains uncertain.
For owners of VanMoof bikes, the company assures that their bikes would remain functional and rideable, as they intended to keep their app and servers online to ensure ongoing services in the future. However, it was important to note that the two-year warranty on these bikes would no longer be valid.
In case of a need for repairs, customers who had already sent their bikes to VanMoof for repairs have the option to collect them from one of the company’s repair stores in the Netherlands. However, there is no guarantee that the repairs will be completed. Since VanMoof bikes could only be repaired by the company itself, and with the company no longer conducting any repairs, they will likely be stuck with their broken bikes for an indefinite period.
