After lockdowns lead to an e-bike boom, VanMoof raises $40M Series B to expand globally

E-bike startup VanMoof, has raised a $40 million investment from Norwest Venture Partners, Felix Capital and Balderton Capital. The Series B financing comes after a $13.5 million investment in May. The funding brings VanMoof’s total raised to $73 million and furthers the e-bike brand’s ultimate mission of getting the next billion on bikes.

The Series B funding will be used to meet the increased demand, shorten delivery times and build a suite of rider service solutions. It also aims to boost its share of the e-bike market in North America, Europe and Japan.

Partly driven by the switch of commuters away from public transport because of the COVID-19 pandemic, the e-bike craze is taking off.

Governments are now investing in cycling infrastructure and the e-bike market is set to surpass $46 billion in the next six years, according to reports.

Ties Carlier, co-founder VanMoof commented: “E-bike adoption was an inevitable global shift that was already taking place for many years now but COVID-19 put an absolute turbo on it to the point that we’re approaching a critical mass to transform cities for the better.”

VanMoof says it realized a 220% global revenue growth during the worldwide lockdown and sold more bikes in the first four months of 2020 than the previous two years combined.

Stew Campbell, Principal at Norwest said: “Taco, Ties and the VanMoof team have not only built an unparalleled brand and best-selling product, but they’re reshaping city mobility all over the world.”

Colin Hanna, Principal at Balderton: “As the COVID-19 crisis hit supply chains worldwide, VanMoof’s unique control over design and production was a key advantage that allowed the company to react nimbly and effectively. Moreover, VanMoof’s direct to consumer approach allows the company to build a close relationship to their riders, one that will be strengthened by new products and services in the years to come.”

VanMoof launched the new VanMoof S3 and X3 in April of this year. I reviewed the S3 here and checked out the earlier X2 version here.

#balderton-capital, #bicycles, #co-founder, #colin-hanna, #cycling, #e-bike, #e-bikes, #electric-bicycle, #europe, #felix-capital, #japan, #micromobility, #north-america, #norwest-venture-partners, #supply-chains, #tc, #transport, #vanmoof, #vanmoof-s3

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Zwift, maker of a popular indoor training app, just landed a whopping $450 million in funding led by KKR

Zwift, a 350-person, Long Beach, Calif.-based online fitness platform that immerses cyclists and runners in 3D generated worlds, just raised a hefty $450 million in funding led by the investment firm KKR in exchange for a minority stake in its business.

Permira and Specialized Bicycle’s venture capital fund, Zone 5 Ventures, also joined the round alongside earlier backers True, Highland Europe, Novator and Causeway Media.

Zwift has now raised $620 million altogether and is valued at north of $1 billion.

Why such a big round? Right now, the company just makes an app, albeit a popular one.

Since its 2015 founding, 2.5 million people have signed up to enter a world that, as Outside magazine once described it, is “part social-media platform, part personal trainer, part computer game.” That particular combination makes Zwift’s app appealing to both recreational riders and pros looking to train no matter the conditions outside.

The company declined to share its active subscriber numbers with us — Zwift charges $15 per month for its service — but it seemingly has a loyal base of users. For example, 117,000 of them competed in a virtual version of the Tour de France that Zwift hosted in July after it was chosen by the official race organizer of the real tour as its partner on the event.

Which leads us back to this giant round and what it will be used for. Today, in order to use the app, Zwift’s biking adherents need to buy their own smart trainers, which can cost anywhere from $300 to $700 and are made by brands like Elite and Wahoo. Meanwhile, runners use Zwift’s app with their own treadmills.

Now, Zwift is jumping headfirst into the hardware business itself. Though a spokesman for the company said it can’t discuss any particulars — “It takes time to develop hardware properly, and COVID has placed increased pressure on production” — it is hoping to bring its first product to market “as soon as possible.”

He added that the hardware will make Zwift a “more immersive and seamless experience for users.”

Either way, the direction isn’t a surprising one for the company, and we don’t say that merely because Specialized participated in this round as a strategic backer. Cofounder and CEO Eric Min has told us in the past that the company hoped to produce its own trainers some day.

Given the runaway success of the in-home fitness company Peloton, it wouldn’t be surprising to see a treadmill follow, or even a different product entirely. Said the Zwift spokesman, “In the future, it’s possible that we could bring in other disciplines or a more gamified experience.” (It will have expert advice in this area if it does, given that Swift just brought aboard Ilkka Paananen, the co-founder and CEO of Finnish gaming company Supercell, as an investor and board member.)

In the meantime, the company tells us not to expect the kind of classes that have proven so successful for Peloton, tempting as it may be to draw parallels.

While Zwift prides itself on users’ ability to organize group rides and runs and workouts, classes, says its spokesman, are “not in the offing.”

#3d, #causeway-media, #cycling, #gaming, #hardware, #health, #highland-europe, #kkr, #mobile, #online-fitness, #permira, #recent-funding, #startups, #tc, #venture-capital, #zone-5-ventures, #zwift

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Google Maps rolls out end-to-end directions for bikeshare users

Google Maps is making it easier for bikeshare users to navigate their city with an update to Maps now rolling out across 10 major markets. Already, Google Maps could point users to bikesharing locations and it has long since offered cycling directions between any two points. The new update, however, will combine both walking and biking directions in order to provide end-to-end navigation between docked bikeshare locations.

That is, Google Maps will first provide detailed walking directions to your nearest bikeshare location before providing turn-by-turn directions to the bikeshare closest to your destination. It then offers the final leg of the trip between the bikeshare drop-off and your destination as walking directions.

Before, users planning to use a bikeshare would have to create three separate trips — one to the first bikeshare to pick up a bike, the second to the bikeshare drop-off point and then walking directions to their final destination. Now, you can plan this outing as one single trip in Google Maps in the supported markets.

In addition to the new end-to-end navigation, Google Maps in some cities will also display links that allow you to open the relevant bikeshare mobile app in order to book and unlock the bike.

The feature is rolling out over the weeks ahead in 10 cities, in partnership with transportation information company Ito World and supported bikeshare partners. These include the following markets:

  • Chicago, U.S. (Divvy/Lyft)
  • New York City, U.S. (Citi Bike/Lyft)
  • San Francisco Bay Area, U.S. (Bay Wheels/Lyft)
  • Washington, DC, U.S. (Capital Bikeshare/Lyft)
  • London, England (Santander Cycles/TfL)
  • Mexico City, Mexico (Ecobici)
  • Montreal, Canada (BIXI/Lyft)
  • Rio De Janeiro, Brazil (Bike Itaú)
  • São Paulo, Brazil (Bike Itaú)
  • Taipei and New Taipei City, Taiwan (YouBike)

Google says it’s actively working to add more partners to bring the functionality to more cities in the months ahead.

The launch of the new feature again one-ups Apple Maps, which recently announced it was catching up with Google Maps by adding a dedicated cycling option within Apple Maps that will optimize routes for cyclists. Apple’s new biking directions can even show if a route includes challenging hills or there’s a bike repair shop nearby, if desired.

Ito World also noted in March it had partnered with Apple to integrate bikeshare data into Apple Maps, allowing iPhone owners to find bikeshare locations across 179 cities.

But Google continues to offer more detailed bikeshare information in its Google Maps product, having over the years launched features like dockless bike and scooter integration with Lime in more than 100 cities and real-time docked bikeshare information in select cities to show availability of bikes for rent.

Offering better biking directions has become even more of a competitive product in recent months for mapping providers, due to the coronavirus outbreak’s impact on travel and transportation. Some commuters, for example, have shifted to using bikes for their trips instead of relying on public transportation, like buses and subways. Google notes this impact has also been reflected in growing worldwide search interest for phrases like “bike repair shop near me,” which hit an all-time high in July — more than double what it was last year.

The updated bikeshare navigation is rolling out in the coming weeks, says Google.

#apps, #bikeshare, #biking, #cycling, #google-maps, #maps, #navigation, #transportation

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Review: Handsome and nippy, new VanMoof e-bikes could be the shape of cities to come

I have to admit, I was an e-bike virgin. Sure, I’d tried out Uber’s Jump bikes and similar e-bikes, but these are more like normal bikes “with a little extra help.” So when I was offered the chance to try out the new VanMoof S3, an e-bike that has literally been built from the ground up, I was excited at how different the experience might be.

Perhaps more significantly, I had a particular task in mind for it. In the current COVID-19 pandemic much has been made of cities being transformed into proverbial deserts, as traffic and pedestrians disappeared. Now, with many cities coming out of lockdown, governments have advised their citizens to go back to work, desperate to get their economies moving. And they are pushing cycling as a viable alternative to public transport, where the virus is more likely to be found. So what better time would there be to try out an e-bike as a viable alternative to commuting to and from the suburbs of a large city?

Indeed, the U.K. government has unleashed a £2 billion package to create a new era for cycling and walking.

In the U.S., New York City recently committed to adding protected bike lanes across Manhattan and Brooklyn. Berlin is extending some of its already extensive bike lanes. And Milan will introduce a five-mile cycle lane to cut car use after the lockdown. New York City has reported a 50% increase in cycling compared to this time last year, and cycling in Philadelphia has increased by more than 150% during the COVID-19 outbreak.

But much of the official advice is to avoid public transport where possible, due to the near-impossibility of social distancing.

So with cycling a viable option in many cities, but distance still the old adversary, many consumers are looking to e-bikes as a way to kill two birds with one stone. Not only can you socially distance, but you can also take the bikes on much longer commutes than is possible with traditional bikes and, dare I say it, traditional legs.

With London still on lockdown recently, I decided to try out the new VanMoof S3 on the deserted streets, cycling from the deep London suburbs right into the empty center of the city.

The bike
For starters, it’s worth saying that the VanMoof S3 is a handsome bike. As a significant upgrade to its previous version, it is similar in its good looks, but what’s “under the bonnet” is what counts.

The S3 is a full-size bike with 28-inch wheels. It has a 24-inch wheeled sister called the X3, which is more compact and it therefore technically “nippier” in the city; however, I found the S3 perfectly suited to London. In fact, its “chopper-like” handling felt very reassuring over London’s bumpy and often unkempt roads.

The S3 and X3 both cost $2,000. Both also come with four-speed automatic shifting and hydraulic brakes. They are cheaper than the previous S2 and X2 models, which only had two-speed automatic shifting and cable brakes. Although the frame construction is unchanged, VanMoof says it has achieved savings by making production more efficient. The bikes weigh about 41 pounds, which is very acceptable for an electric bike. You can get front and rear racks as accessories for pannier bags, cargo boxes or a child seat.

The range per charge varies somewhere between 37 and 93 miles, depending which power level you select on the smartphone app. Level 0 turns off the electric pedal assist, leaving the bike quite heavy to pedal, and level 4 boosts the bike continuously. For my jaunt around London I used Level 4 all the time and managed to get a full, and quick, 45 miles out of the bike without even breaking a sweat, showing that even the heaviest users would be well served by the S3. If you are concerned about your battery charge level, this is displayed on top of the cross-bar, which also shows you current speed. It takes four hours to charge the bike to 100%, but just under an hour and a half to get to 50%.

The VanMoof is driven by a front hub motor and in “European mode” gives a continuous power of 250 watts. But to get more speed you can select the U.S. setting, tick a disclaimer and get 350W of continuous power, with peak power-hitting 500W via the Boost button on the right handlebar. That means you can take off at the lights very easily and quickly get ahead of the traffic, while the normal pedal assist will suffice for most needs. The Boost is particularly useful when going up hills, which the S3 seemed to devour on my ride through London.

Thieves will find this bike frustrating. The rear brake locks when you tap the button near the rear hub. All parts apart from the handlebars and seat post require a special tool to undo. The headlight and taillight are integrated into the frame. The tires are large and puncture-resistant and covered by large metal fenders with integrated mud flaps.

If a thief tries to wheel away the bike when it’s locked it will immobilize the rear wheel and belt out a loud alarm. If the thief persists, a more shrill alarm will sound, the headlights and taillight will flash, a notification will appear on your phone and the bike will refuse to work at all. Only VanMoof can then re-enable the bike using the bike’s built-in cellular data connection and Bluetooth. The bike will sense the phone in your pocket as you approach, allowing you to unlock the rear wheel — and the app always shows the bike’s current location.

VanMoof’s three-year, $340 “Peace of Mind” plan means that it guarantees to find or replace your bike if it gets stolen (assuming it was locked). In the meantime, you will get a bike on loan, although this plan is only available in cities where VanMoof has a presence.

One possible drawback of having the battery welded inside the bike is the necessity of needing to be near a power outlet every time it needs charging. This drawback will be limited to those who are unable to take the bike up to an apartment, or fear for the bike’s safety if it has to charge outside a house. Yes, the hard-wired battery might well be a security “feature,” but this may well be a deal breaker for many, forcing them to look to other bikes which have removable batteries. That said, you are likely to pay more for the bike in the first place.

The journey
As for my test around London, to put the bike through its paces I cycled from the deep suburbs right into the heart of the West End. I’d like to say people asked me about the bike, but no one was around to impress! At the time of the test, London was in full lockdown and eerily quiet.

Hitting the Boost button felt like the “Punch it, Chewy” moment form Star Wars, as I pulled away from traffic. I unwittingly rode the bike at Level 4 all the way there and back, which meant that after about four hours and about 45 miles I ran out of charge on the last mile home. However, this was not a problem as I could cycle the last leg, despite it being a bit of a strain without any electrical assistance. Level 2 or 3 would probably have been a more ideal combination of power and range.

When you drive a Tesla you drive differently, zipping in and out of lanes. Similarly with this bike I realized I could overtake “normal” bikes effortlessly. Overall I’d say this is an excellent electric bike.

VanMoof, which was was founded in 2009 by Taco and Ties Carlier, two Dutch brothers, has now attracted a €12.5 million ($13.5 million) investment from London VC Balderton Capital and SINBON Electronics, the Taiwan-based electronics manufacturer which is VanMoof’s bike assembly partner. So expect to see this company ramp up its presence across Europe and the U.S.

Admittedly they are not the only VC-backed e-bike on the market. Brussels-based Cowboy is an e-bike startup which only appeared in 2017 but which has since raised $19.5 million from Tiger Global and London’s Index Ventures.

It looks like the e-bike wars have begun, they have.

[All pictures by Mike Butcher]

#berlin, #bicycles, #bluetooth, #brussels, #cowboy, #cycling, #e-bike, #e-bikes, #electric-bicycle, #europe, #flash, #london, #mountain-biking, #new-york-city, #philadelphia, #reviews, #sinbon-electronics, #smartphone, #tc, #tiger-global, #transportation, #uber, #uk-government, #united-kingdom, #united-states, #vanmoof

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