Seems like VanMoof is not our Tesla

Lessons from a bumpy ride, and what I think should replace it

One of my 7 VanMoofs. They were one of the most requested bikes in my fleet. I’ll still have them in my fleet until they break, but their legacy will live on.

Recently I removed the VanMoof from my recommended bike list due to the unfortunate news that they have stopped taking orders and are pursuing a sale. They were innovators, and pushed the industry forward. An early retro is that what went wrong is that they added too much complexity, and that put a big dent on reliability. That pushed their costs above what consumers were willing to pay. (Note that much of this is speculative.)

That complexity came in a variety of places. Some innovations that they had (they weren’t the first on all of these, but these each contributed to the complexity) :

• Kick lock and passcode unlock mechanism (more on anti-theft after this list)

• “Peace of mind” maintenance package

• Anti-theft insurance package

• Custom parts requiring a custom tool to remove, to reduce theft of e.g. the bike seat

• Advanced app

• GPS tracking, including Find My integration with Apple

• Display screen on the bike frame itself

• Automatic gear shifting

• Integrated battery

• Boost in lieu of throttle

• Over the air updates, including push button shifting

• Custom parts in many areas of the bike, in lieu of off the shelf components

• Being both direct to consumer and sold through their own retail

• Creating not just the S/X or S/A models, but also the V, which was to be a faster version

Let’s talk more about that anti-theft in particular. VanMoof sold, for about 10% of the price of the bike, an insurance package where the user would get a full replacement of the bike if it was stolen, up to 3 times within 3 years. This was a price far lower than commercial insurance. Typical commercial insurance prices are (ballpark) that you’re paying 10% for 1 year of protection to get the depreciated value of the bike if it’s stolen one time, after a deductible.

This step change in customer value was supposedly enabled by the tracking on the bike, as well as their “Bike Hunters” that would track your bike down, and sometimes make a YouTube video of it.

The promise of that package, while being able to lock the bike using an integrated and convenient lock, was the primary value driver for customers. Sometimes customers would say they loved the sleek design, and others liked having a tech forward bike. But the anti-theft features were the enduring value driver.

Now VanMoof is exploring a sale. It will be an uphill battle, because all of the complexities they took on together make it a large undertaking to take over. The reliability challenges along the way have been well documented, and I experienced as much with the 7 Van Moofs that I own. VanMoof offered customers good warranties, but their parts were custom and they kept breaking, so the costs were high to fulfill claims. And a primary customer value prop, the insurance plan, was likely unit economics negative.

It was a great addition to my fleet, because it showed people a glimpse of the future. It was one of the most frequent requests to test ride. But it wasn’t a great option to be people’s only bike. And now it appears the end of an era. VanMoof isn’t going to be our Tesla.

But we’ll see more tech-forward bike companies. Let’s not forget the car industry has also seen a wave of failures recently, especially in the electric car space. And the bike industry is largely unsubsidized and its customers have to deal with unsafe roads.

That contrasts with the electric car industry, which gets $7,500 per car for many cars, and gets to use roads for free that come at great expense to taxpayers. VanMoof’s demise is unfortunate.

The biggest learning that I’ll take away from VanMoof is that there is substantial demand for more anti-theft features. And that’s what I’d like to see next. A bike that largely uses tried and true features that focuses on being a good bike at a good price. But adds anti-theft features. I’m not sure if an integrated lock is essential. It probably has tracking. It might have a camera. I think there’s potential for a recovery service. And financial services like the insurance program could be a solid addition.

In other words, a bike that doesn’t try to change everything at once. And what it does try to change is focused on anti-theft. Anti-theft is the second most important feature for ebikes, after road safety. We need much more support from cities on both, but even despite that, ebikes are making our cities better. Thank you to everyone in the industry for your work. And thank you VanMoof for pushing the industry forward.

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Ebikes are more than a hobby for me. They are a big reason we’re able to build walkable neighborhoods at my company, Culdesac. Check out Culdesac Tempe! Our first residents moved in May 2023, and we’re leasing out another 30 buildings now! Even if moving to Culdesac Tempe isn’t in the cards for you, come do a tour and grab dinner at Cocina Chiwas! Or check out our weekly market, Little Cholla.