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E-bike shooting star VanMoof in dire straits
07/13/2023 4:39 p.m
In the corona pandemic, the e-bike manufacturer VanMoof from the Netherlands has expanded significantly. But for some time now things have been going downhill for the former shooting star. Angry customers stand in front of closed shops in Amsterdam. The company is in financial difficulties.
The Dutch e-bike manufacturer VanMoof, once celebrated as a rising star, is on the brink of collapse. The Amsterdam-based company applied to the court for a moratorium on payment, which it was granted. Management and court-appointed administrators are now “looking for a possible solution so that VanMoof can continue its business,” the company said. It “temporarily” closed its branches.
“Due to recent developments, we have decided to close our branches for the safety of our colleagues there,” the company said. “We will inform all customers as soon as possible about upcoming deliveries or repairs.” The sale of new wheels has been discontinued.
Angry customers gathered in front of the store in Amsterdam today, Wednesday. Many had brought their bikes to be repaired or had already ordered them. “I’m here to pick up my bike but they won’t let me in,” said one customer. “That’s a shame.”
VanMoof had expanded significantly during the corona pandemic. But since then it’s been downhill. According to Dutch media, the company is struggling with long delivery times and technical problems. In 2021, the bottom line was a loss of 80 million euros, as well as in 2022, as the newspaper “Het Financieele Dagblad” reported.
The e-bike trend is driving Europe’s bicycle industry
The bicycle industry experienced a boom during the pandemic, as customers shied away from public transport and discovered cycling in the fresh air with a low risk of infection. Due to the high demand, production jumped up and there were delivery problems. The market has recently cooled off again. However, the economic basis of the industry is intact and the popularity of cycling is unbroken, said Kevin Mayne, head of the Cycling Industries Europe association.
Despite the waning Corona tailwind for the industry, sales of bicycles and bikes with electric drives grew by 7.4 percent to a total of 21.2 billion euros, the Association of the European Bicycle Industry announced in June. Sales of bikes with electric motors in the EU and Great Britain increased by a total of 8.6 percent to 5.5 million, while their production shot up by almost a fifth (19 percent), the association reported at the Eurobike trade fair.
Overall, sales of bicycles and bikes with e-drives fell by a good nine percent to 20.2 million and production by five percent. “Despite the slowdown in bicycle sales in Europe in 2022, the overall industry and market trend is positive,” said Conebi Managing Director Manuel Marsilio.