After days of uncertainty, the Dutch e-bike manufacturer VanMoof has been declared bankrupt by the Amsterdam court.
This news came shortly after the company filed for protection from creditors, hoping to restructure and continue its operations. VanMoof, founded by brothers Taco and Ties Carlier in 2009, had gained fame as one of "Europe's fastest-growing companies," raising hundreds of millions of euros in 2020 and 2021 due to the increased demand for bicycles during the pandemic.
Despite its initial success and worldwide popularity, VanMoof had recently faced financial challenges. The company was experiencing losses on each bike sold, with deficits amounting to millions of euros in 2019 and 2020. Their 2021 annual report indicated a staggering deficit of €78 million, and further losses were expected in 2022. This led to a suspension of payment and the subsequent bankruptcy declaration by the Amsterdam court.
Rival e-bike manufacturer helps VanMoof 's customers
The sudden bankruptcy of VanMoof has raised concerns for its customers, especially those relying on the connected smartphone app that the company provided. This app played a crucial role in controlling various settings and functions of the e-bikes, including the ability to start the bike. With VanMoof's servers at risk of going offline during the administration process, many VanMoof bike owners could be left with unusable e-bikes, unable to access the app's features.
In a surprising move of support and goodwill, Cowboy, the Belgian e-bike manufacturer and a competitor to VanMoof, has released a free app called "Bikey." This app allows VanMoof bike owners to generate a unique digital key, ensuring that they can continue to use their bikes even if VanMoof's servers go offline. By providing this app, Cowboy aims to keep bikes on the road and help VanMoof customers, regardless of their rivalry in the market.
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As VanMoof navigates the bankruptcy process, it remains uncertain whether a buyer or new financier will struggle to maintain the company's customer base if they turn to third-party apps like Bikey or Moofer (another app alternative for VanMoof owners). The fate of VanMoof and its customers will largely depend on the administrators' decisions and potential buyers' interest in reviving the business.
A cautionary tale for other e-bike startups
The VanMoof bankruptcy serves as a cautionary tale for other e-bike startups in the industry. As the demand for e-bikes surged during the pandemic, many companies experienced rapid growth but also faced financial challenges.
For sustainable success, it is essential for e-bike manufacturers to carefully manage their finances, address supply chain issues, and ensure they offer reliable support and after-sales service to their customers.
