Losing more than 30 million euros per year, Dutch bikes Swapfiets continue to believe in it thanks to its owner’s money, but must resolve their outstanding payments and repairs.
You have probably seen them in the streets of Paris or even abroad like in Amsterdam. Normally, with their blue front tires, the Swapfiets bikes available for rental are popular.
The Dutch firm has in fact been offering four models for several years, including two electric bikes. On the other hand, you may have noticed that they have left the streets of Strasbourg, Lyon or Toulouse. Because despite appearances and its 270,000 subscribers, Swapfiets is not doing that well.
Swapfiets blue tires in the red
If it sees its turnover take off by 37% (71.1 million euros) according to the media Quote, the brand published its third consecutive net loss according to the latest financial report. It thus recorded a deficit of 30.9 million euros last year, compared to 29.3 million in 2021 and 14 million in 2020. Are we dealing with a new Dutch player heading towards bankruptcy, like Vanmoof ? Not so fast.
Because Swapfiets belongs to the Pon group (Cannondale, Gazelle, Kalkhoff, Cervélo, etc.), trusting it entirely. Its owner has already invested 109 million euros, including 34.5 million last year alone, and still believes in profits in 2023.
An unlikely objective, leading Swapfiets to stop its expansion and leave certain markets. This is the case of Italy, or of certain cities like us with the exception of Paris. The activity thus focuses on the Netherlands, Belgium, France, Spain, Germany, Denmark and Austria.
On the other hand, to avoid ending up in the red once again and in 2024, Swapfiets will have to resolve its big problem: 44% of bicycles are damaged, leading to 600,000 repairs, or kept by tenants who no longer pay. And the competition, in Paris via Dance, Red-Will or Motto, is raging.
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