VanMoof, the Dutch e-bike company once renowned for its sleek but expensive electric bikes, has recently fallen into financial distress. Despite boasting about being the “most funded e-bike company in the world,” recent reports reveal that VanMoof has filed for bankruptcy.
Here are three key things to know about the tragic VanMoof e-bikes bankruptcy.
1) Reason for Bankruptcy
In January, VanMoof submitted paperwork to avoid bankruptcy. By early July, the company had stopped taking orders and had sought protection from creditors. A Dutch court ultimately declared VanMoof’s Dutch operations bankrupt on July 17.
While the official reasons behind the bankruptcy haven’t been disclosed, customer reviews suggest that the company faced numerous issues with reliability, repairs, and customer service. Additionally, using custom parts made repairs a nightmarish process, as only VanMoof could provide spare parts or conduct repairs.
2) VanMoof’s Future
Currently, the future of VanMoof remains uncertain. The Dutch courts have appointed trustees to determine the fate of the company’s remnants. There’s a possibility that VanMoof might sell its assets to a third party to continue its existence. However, until a resolution is reached, customers with prepaid orders or in need of repairs will face challenges.
VanMoof will try to keep the VanMoof app and servers operational, but it cannot make any promises. Therefore, VanMoof is urging its customers to create a backup unlock code for accessing their bikes through the handlebars.
Competitors like Cowboy and Blurby Bike might step into the void left by VanMoof, offering alternative e-bikes at comparable prices.
3) Lessons for Competitors
VanMoof’s bankruptcy serves as a warning to other luxury e-bike manufacturers. Despite successful marketing and celebrity endorsements, VanMoof’s lack of focus on product improvement, coupled with high prices, contributed to its demise. As a result, competitors should take heed and prioritize delivering reliable and customer-friendly products in this competitive market.
Image source: The Verge, https://shorturl.at/bEV19. Image cropped.