When VanMoof declared bankruptcy last year, around 5,000 customers who had pre-ordered electric bikes were left in the cold. Now VanMoof has relaunched under new management, and the company's current owners are offering those same customers a €1,000 discount on new bikes to buy them.
It was a bold strategy, a gamble that abandoned customers who liked VanMoof bikes would shell out a few thousand euros more.
Before its bankruptcy, VanMoof required customers to pay nearly the full amount when they pre-ordered to give the startup working capital, but this resulted in long wait times for delivery. Prices for bikes range from 2,300 to 2,500 euros depending on the model and year.
Today's models (the full-sized S5 with 27.5″ wheels and a straight frame, and the smaller A5 with 24″ wheels and a step-through frame) cost €3,298. That means customers who want to take advantage of this discount will have to shell out an additional €2,298 on top of what they've already paid for their undelivered e-bike. In short, they'll end up paying roughly €5,600 in total for a single VanMoof bike.
“Obviously, it's not a perfect solution, we're very aware of that,” VanMoof co-CEO Elliot Wertheimer told TechCrunch. “We see this as a gesture to help people who still believe in bikes get back on the bike.” [VanMoof].”
Before its bankruptcy in July 2023, VanMoof had raised nearly $200 million in venture capital and won over a passionate fanbase with its vision of sleek, trendy, and uncluttered e-bikes designed end-to-end and controlled by an integrated app. The style was there, but the startup lacked execution. Using custom-made parts, the bikes broke frequently, and replacing those parts in a timely manner was difficult, especially without a strong service network. Wertheimer said the company also used VC money to artificially lower prices, which quickly became unsustainable.
Lavoie, the electric scooter manufacturing division of McLaren Applied, acquired VanMoof in August 2023. Since then, Lavoie has restructured VanMoof's supply chain, built an extensive service network in Europe and parts of the United States, revitalized VanMoof's technology ecosystem, including apps and websites, and worked to redesign VanMoof's core products. In other words, VanMoof claims to now offer more reliable and repairable electric bikes that have undergone McLaren's testing and design iteration process.
“We've rebuilt and we're starting afresh and we're looking at how to rebrand and start again,” Wertheimer said. “Throughout this whole journey, it's always been about what we can do for people who don't have access to bikes.”
Apparently, the answer to that question is not to refund customers, but to try to lure them in with discounts, because the money is tied up in bankruptcy proceedings. Wertheimer told TechCrunch that the money customers spent on the bikes, and the bikes themselves, are part of the bankruptcy estate and are being held by a receiver in the Netherlands, meaning Lavoie doesn't have access to those funds.
“So anything we can do to help people who didn't buy bikes from the old company has to essentially come out of our own pocket,” Wertheimer said, noting that 1,000 euros was the most Lavoie could give “without threatening our existence.”
Wertheimer also noted that the bankruptcy proceedings are ongoing and that customers may be able to get some refunds through them once the proceedings are concluded, but given that there is likely a long line of secured and priority unsecured creditors ahead of these customers (not to mention the legal costs associated with the bankruptcy proceedings), customers probably shouldn't get their hopes up.
Those who want to apply for the discount can do so here, but be prepared for a somewhat complicated process.
When Lavoie acquired VanMoof, a combination of back-end chaos and data-sharing restrictions imposed by Europe's GDPR regulations meant he couldn't access the company's customer orders, meaning customers wanting to take advantage of discounts had to contact VanMoof directly and provide proof of an order.
And if you haven't already gone through the hassle of getting your money back from your bank via chargeback, you should: VanMoof will only offer a discount to people who can prove they tried and failed to get their money back this way.
Those who follow all these steps and agree to pay the deposit upfront will be able to avail the discount until December 31, 2027.
It's unclear whether VanMoof's strategy will be successful. One thing is for sure: the startup's future depends on regaining customer trust and delivering on its promises. Customers will have to decide whether the allure of a fancy, redesigned e-bike is worth the price and effort, or whether past failures will scare them away for good.