VanMoof is a bit like the Apple of the electric bike. The Dutch manufacturer has entered this market with the ambition of attracting CSP+ city dwellers seeking premium mobility with connected products and high-end design, combined with a set of integrated services: a rental system, insurance, maintenance, guarantee against theft and high prices (around 3000 euros).
Something to convince investors: in May 2020, in the midst of the coronavirus crisis, the manufacturer announced a fundraising of 12.5 million euros and then 128 million dollars in 2021, the highest fundraising in the industry European cyclist.
But since the end of 2022, the difficulties seem to be accumulating to the point of fearing the worst for the manufacturer. And over the last few weeks, things have picked up speed.
On June 29, in the different geographical versions of the site, the manufacturer indicates that it is now impossible to buy a bicycle. The manufacturer evokes “an error”.
A little later, at the requests of the media and the discontent of customers, the manufacturer gave another explanation. “We have temporarily interrupted our sales to catch up with the production and delivery of our orders”, can be read below on the official website of the brand.
An insect?
Problem, customers who have already placed an order are still waiting for their bike and start to get annoyed on social media. VanMoof assures that everything is fine, but for many the company does not really have stock. Same delays for after-sales service.
According to TechCrunch, the company is once again in urgent search of fresh money (up to 40 million euros) to ensure its operation and even its survival, because the losses are accumulating.
According to an investigation by the Dutch financial newspaper, Het Financieele Dagblad, VanMoof would be selling their products at a loss and would also lose a lot of money replacing 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 highly verticalized model is costing you dearly.
At the same time, the leaders are jumping ship, which really does not bode well. CEO Gillian Tans has reportedly stepped down, while VanMoof co-founder Taco Carlier has also stepped down from his operating roles, according to TechCrunch.
A debt to be paid before July 17
And it’s not over. In another sign of great excitement, a partner (OnePlanet Crowd) is posting an unfulfilled refund from the manufacturer, stating that it has sent them a “defect notice.” VanMoof must comply with your claim within 14 days, that is, by July 17.
Since then, there has been radio silence from the manufacturer, in particular when asked about the number of pending orders, deadlines, financial situation, the search for funds.
Requested by BFM Business, VanMoof’s French spokesperson did not respond to requests for comment.
Bankruptcy would spell disaster for users
Separately, the company is communicating business as usual about a deal with a new bike service partner and has posted a software update online. Just to show that everything is normal. And there are no layoffs to report at this time.
However, by freezing orders during one of the most prosperous periods in the sector, namely the summer, the manufacturer may well amplify its financial difficulties even if it obtains funds or a loan.
Obviously, a potential bankruptcy for VanMoof would be dramatic for its employees (500 to 1,000 according to Glassdoor), but it could also spell hardship for VanMoof bike owners.
VanMoof bikes are wired and can only start and run with the associated app, a proprietary app. If this app is no longer functional, the bikes won’t be functional either and the owners will have a nice decorative item on their hands.
Source: BFM TV
