How VanMoof’s new owners plan to win back their old customers

When VanMoof filed for bankruptcy last 12 months, it left some 5,000 customers who had ordered e-bikes within the lurch. Now VanMoof is under new management, and the corporate’s current owners are courting those self same customers by offering them a €1,000 discount on a new bike.

It’s an audacious strategy, based on the belief that stranded customers will love VanMoof bikes a lot that they may spend several thousand euros more on them.

Before the corporate went bankrupt, VanMoof asked customers to pay almost all the amount after they pre-ordered, in a move intended to provide the startup with working capital, which also resulted in long waits for delivery. The bikes cost between 2,300 and a pair of,500 euros, depending on the model and 12 months.

Today’s models – full size S5 with 27.5-inch wheels and a straight frame, in addition to smaller A5 with 24-inch wheels and a step-through frame – costs €3,298. This signifies that customers who want to make the most of this discount can have to pay one other €2,298 on top of what they already paid for the undelivered e-bike. In simpler terms, they’d have spent a complete of close to €5,600 on a single VanMoof bike.

“Of course it’s not a complete solution. We’re very aware of that,” Eliott Wertheimer, VanMoof’s co-CEO, told TechCrunch. “We see it as a gesture to help people get back on the road who still believe in (VanMoof).”

By the time VanMoof filed for bankruptcy in July 2023, it had raised nearly $200 million in enterprise capital and built a cult following with its vision of sleek, stylish, uncluttered e-bikes designed from start to finish and controlled by an integrated app. The style was there, however the startup lacked execution. Using custom parts meant the bikes often broke down, and replacing those parts in a timely manner was difficult, especially with out a solid service network. According to Wertheimer, the corporate also used the VC money to artificially lower prices in a way that quickly became unsustainable.

Lavoie, a division of McLaren Applied that was founded in 2022 to construct electric scooters, acquired VanMoof in August 2023. Since then, Lavoie has worked to reestablish VanMoof’s supply chain and create a broad service network throughout Europe and parts of the United States; revitalize VanMoof’s tech ecosystem, including its app and website; and redesign VanMoof’s core products. In other words, today VanMoof claims to offer more reliable, repairable e-bikes which have undergone McLaren’s design testing and iteration process.

“We’ve already gone through a restructuring, we’ve already gone through a restart. We’re starting to figure out how to reestablish the brand and get it going again,” Wertheimer said. “A constant consideration throughout this journey has been, what can we do for the people who haven’t gotten their bikes?”

The answer, apparently, is to try to lure customers with discounts slightly than give them their money back, since that cash is tied up in bankruptcy proceedings. Wertheimer told TechCrunch that the cash customers used to pay for their bikes, in addition to the bikes themselves, are a part of the bankruptcy estate, which is being managed by trustees within the Netherlands. That means Lavoie has no access to those funds.

“Anything we could do to support people who didn’t get bikes from the old company will have to come out of our own pockets,” Wertheimer said, noting that €1,000 is essentially the most Lavoie can afford “without putting our existence at risk.”

Wertheimer also noted that the bankruptcy process is ongoing, and customers can still receive partial refunds once it’s complete. Although given the likely long line of secured creditors and priority unsecured creditors ahead of those customers (not to mention the legal costs related to the bankruptcy process), customers probably shouldn’t hold their breath.

People who want to make the most of the discount can apply for it Herebut be prepared for a slightly convoluted process.

When Lavoie took over VanMoof, he couldn’t access the corporate’s customer orders due to a mixture of a chaotic back office and data-sharing restrictions stemming from the European GDPR. That means customers who want to claim their discount can have to contact VanMoof directly and supply documentation to prove they placed an order.

They will even have to undergo the entire strategy of trying to get the cash back from their bank via chargeback, in the event that they haven’t already. VanMoof will only provide discounts to individuals who can prove they’ve tried and failed to get their money back this fashion.

Those who take all of the steps and make a purchase order have until December 31, 2027 to make the most of the discount.

It’s unclear whether VanMoof’s strategy can pay off. One thing is needless to say: The startup’s future will depend on its ability to regain customer trust and deliver on its guarantees. Customers can have to determine whether the allure of a horny, redesigned e-bike is definitely worth the price and energy, or whether past failures will keep them away for good.