The concerns were legitimate. After several months of difficulties, VanMoof, the maker of high-end electric bikes, officially filed for bankruptcy on Tuesday.
The Amsterdam court “withdrew the suspension of payment proceedings for Dutch legal persons (…) and declared these entities bankrupt,” the company said in a press release, while specifying that “VanMoof’s legal persons outside the Netherlands are not subject to insolvency proceedings”.
Why is it bankrupt?
VanMoof made a bet. He proposed an offer integrated with a premium and connected bicycle sold for several thousand euros associated with a series of services such as maintenance (with free change of parts), insurance against theft and a smartphone application that allows, for example, to unlock the bicycle, manage speed, light, locate it etc…
What to convince investors: in 2021, the manufacturer raises 128 million dollars in 2021, be the biggest fundraiser of the European cycling industry. In total, 190,000 bikes were sold according to the company.
Problem, VanMoof would sell its products at a loss, in particular due to the replacement of parts under warranty. More expensive parts due to inflation and more difficult to obtain because they are designed exclusively for the brand’s motorcycles. In short, VanMoof’s very upright and proprietary model is costing him dearly.
The company suffers losses of almost 80 million euros in 2021 and 2022, according to local media, and must manage criticism for the numerous breakdowns of its bicycles due to sometimes unstable technical innovations.
At the end of June, the manufacturer stopped taking orders on its sites while customers who had previously placed an order were still waiting for their bike. At the same time, the leaders jump ship.
The company is then in search of fresh money to operate, in vain. It quickly finds itself in default.
No new deliveries expected
For customers who placed an order before the end of June, the situation is complicated. On its site, the company specifies that no new bikes, accessories, or ordered parts will be delivered.
However, in a tweet, VanMoof specifies that “if you ordered a bike or accessories and have not received them, it is probably a scam.” However, it is difficult to know if all the orders have actually been complied with.
If VanMoof is liquidated, these clients will have to turn to the administrators who are in charge of evaluating the assets to pay the creditors. But expired customers are always last on the list.
The only hope is the rapid takeover of the company by a third party. Two directors, “continue to assess the situation at VanMoof and are exploring the possibilities of a restart through the sale of assets to a third party so that VanMoof’s activities can continue,” the company stressed.
For those who have a bicycle in after-sales service, “they can recover it, but they will have to present proof of ownership,” says the company.
Bicycles turned into bricks?
For VanMoof bike owners, it’s uncertainty. The question is whether their bikes will still work. These are connected and can only start and work with the associated application, a proprietary application. If this app is no longer functional, the bikes won’t be either.
By the way, the manufacturer warns: “It seems that the servers will work for a while, but we never know how long.”
However, the Belgian manufacturer Cowboy has proposed a solution principle, which also offers high-end electric bikes.
In fact, the manufacturer has developed an application called cyclist that allows users of VanMoof bikes to obtain the digital key to their two-wheeler and unlock it using Bluetooth technology. To do this, they simply need to log into their VanMoof account by going to the app. With this tool, VanMoof bike owners can control them without going through the brand’s servers.
For now, alone S3 models and X3 can be unlocked through the Cowboy software. But the S5 and A5 should soon join them, according to numeral.
It remains to be seen if this solution will be sustainable and if the app will be regularly updated to allow users to fully enjoy their bikes.
Source: BFM TV
