When VanMoof declared bankruptcy last year, it left around 5,000 customers who had preordered e-bikes in the lurch. Now VanMoof is up and running under new management, and the company’s current owners are courting those same customers by offering them a €1,000 discount off a new bike.
It’s an audacious strategy, one that bets on jilted customers loving VanMoof’s bikes so much that they’ll shell out several thousand more euros for them.
Before it went bust, VanMoof had asked customers to pay close to the full amount when they preordered, a move designed to give the startup working capital that also resulted in long wait times for delivery. The down payment cost anywhere from €2,300 to €2,500, depending on the model and year, money many customers never got back.
Today’s models — the full-sized S5 with 27.5-inch wheels and a straight frame, as well as the smaller A5 with 24-inch wheels and a step-through frame — cost €3,298. Which means customers who want to take advantage of this discount will have to put down another €2,298 (€3,298 cost of bike minus €1,000 discount) on top of what they already paid for their undelivered e-bike. Simply put, they’d be spending close to €4,600 all together for one VanMoof bike.
“Obviously it’s not a full resolution. We’re very much aware of that,” Eliott Wertheimer, VanMoof’s co-CEO, told TechCrunch. “The way we see it is this is a gesture to help people get back on the road who still believe in [VanMoof].”
Before going bankrupt in July 2023, VanMoof had raised close to $200 million in venture capital and gained a cult following on the vision of its sleek, trendy, uncluttered e-bikes designed end-to-end and controlled by an integrated app. The style was there, but the startup lacked execution. Using bespoke parts meant the bikes often broke, and it was difficult to replace those parts in a timely manner, especially without a robust servicing network in place. The company also used its VC money to artificially lower prices in a way that quickly became unsustainable, according to Wertheimer.
Lavoie, a division of McLaren Applied that was formed in 2022 to build e-scooters, acquired VanMoof in August 2023. Since then, Lavoie has worked to re-establish VanMoof’s supply chain and set up a wide service network throughout Europe and parts of the U.S.; reinvigorate VanMoof’s technical ecosystem, including its apps and website; and re-engineer VanMoof’s core products. In other words, today VanMoof claims to offer more reliable, repairable e-bikes that have gone through McLaren’s testing and design iteration process.
“We’re past restructuring, we’re past restarting. We’re getting into how we re-establish the brand and relaunch,” said Wertheimer. “An ongoing consideration throughout this whole journey was what can we do for people who didn’t get their bikes?”
Apparently, the answer to that question is to try and hook customers with discounts instead of giving them their money back because that money is tied up in bankruptcy proceedings. Wertheimer told TechCrunch the money customers used to pay for their bikes, as well as the bikes themselves, are part of the bankruptcy estate, which is being managed by the estate’s administrators in the Netherlands. That means Lavoie doesn’t have access to those funds.
“So anything we could do to support people who didn’t get their bikes from the old company will effectively have to come out of our own pocket,” said Wertheimer, noting that €1,000 is the most Lavoie could afford “without threatening our existence.”
Wertheimer also noted that the bankruptcy process is ongoing, and customers still stand to get partial refunds through that once it’s resolved. Although, given what is likely a long line of secured creditors and priority unsecured creditors ahead of those customers (not to mention legal fees associated with the bankruptcy process), customers probably shouldn’t hold their breath.
For those who do want to sign up for the discount, they can apply here — but get ready for a somewhat convoluted process.
When Lavoie took over VanMoof, it wasn’t able to access the company’s customer orders due to a combination of a chaotic back-end and data-sharing constraints from Europe’s GDPR regulation. That means customers who want to cash in their discount will need to reach out to VanMoof directly and show documentation to prove they made an order.
They’ll also need to go through the rigmarole of trying to get a refund from their bank via a chargeback, if they haven’t already. VanMoof will only provide discounts to people who can prove that they tried and failed to get their money back this way.
For those who are happy to follow all those steps and ante up, they have until December 31, 2027 to apply their discount.
It’s unclear if VanMoof’s strategy will pay off. One thing is certain: The startup’s future hinges on its ability to regain customer trust and deliver on its promises. Customers will have to decide on whether the allure of a sexy, re-engineered e-bike is worth the price and the effort, or if past failures will keep them away for good.
Updated 7/15/24 9:30 a.m. PT to clarify costs for customers who placed preorders (undelivered) before VanMoof declared bankruptcy.
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