The Dutch manufacturer of e-design bicycles, VanMoof, is on the verge of bankruptcy. The financial problems are so dramatic that the company can no longer pay its bills. Instead of making a billion people addicted to cycling, the company succumbs to a loss of millions.

On Wednesday, VanMoof was granted a two-month payment postponement by the Amsterdam court. Unfortunately, deferment of payment is often a precursor to bankruptcy.

In the meantime, all shops of the Amsterdam-based bicycle brand are closed, and the company has not been selling or delivering new bicycles for months. According to some Dutch media, it is uncertain whether people will see their newly ordered bicycles, their money (a VanMoof e-bike costs €3 500), or the maintenance costs incurred.

Many defects and long waiting times

VanMoof’s mission was “to get the next billion earthlings to cycle”. However, profit was not forthcoming. Year after year, the manufacturer of the trendy e-bikes ended up in the red. For 2022, the loss was 78 million euros, the year before 70 million euros. Currently, VanMoof is looking for new investments to keep its head above the water.

VanMoof’s initial success story soon showed its first cracks: the urban bikes had many defects – one out of ten VanMoof bikes had to return to the shop for repair – and customers complained about the long waiting times for repairs.

Made in Taiwan

One of the problems was that the VanMoof brothers made all the parts and software themselves instead of outsourcing it as many other manufacturers do. By keeping the design of parts in their own hands as much as possible, they wanted to make a unique product. Often made in Taiwan.

The Carlier brothers didn’t want to depend on large suppliers, such as Shimano or Bosch. Consequently, the bikes could only be repaired by specialized bicycle repairmen, resulting in long waiting times.

Ambitious goal

In the meantime, the Belgian bicycle brand Cowboy already offers VanMoof customers an app to lock and unlock their bicycles. If the Dutch manufacturer many would go bankrupt. Other VanMoof owners are trying to get rid of their bikes as soon as possible.

VanMoof was founded by two brothers, Taco and Ties Carlier. Their ambitious goal was to develop the perfect city bike and to get “the next billion on bikes”. “We want to get as many people as possible on the bike in New York, San Francisco, Paris, Brussels, and Amsterdam,” Taco Carlier said. “And if that’s the goal, then you have to go electric,” he added.

In 2020, the company opened a pop-up store in Belgium, near its competitor Cowboy in the popular Brussels Dansaert district.