Start-up for used e-bikes is expanding

Munich Once you have gently stepped on the pedals, an e-bike starts moving. If you want to earn money with electric bikes, you need a lot more effort. Sven Erger experienced this painfully in the early days of his start-up Rebike Mobility.

In the meantime, however, the young Munich company is really on the move: sales are expected to double this year to more than 20 million euros. And the entrepreneur has just raised fresh money: 24 million euros flowed in as equity and outside capital.

Nevertheless, the 49-year-old is not progressing as quickly as demand would allow, because the bike manufacturers are not supplying enough. “We could sell a lot more,” complains Erger. But especially e-mountain bikes are scarce.

In 2018, Erger started together with partner and co-CEO Thomas Bernik: with an internet platform for high-quality, used e-bikes – the annual cars among electric bikes, so to speak. They should initially come from private individuals. The entrepreneurs also wanted to offer demonstration models from the manufacturers.

It soon became apparent that it is not worth buying e-bikes from consumers. The producers, on the other hand, do not have enough exhibits on offer to adequately supply Rebike. That is why the two founders have changed their business model.

Rebike sold 2000 subscriptions last year

They now take care of the supply of used e-bikes themselves. Bernik and Erger opened rental stations in Oberstdorf and Garmisch-Partenkirchen. After a few days or weeks of use, they then sell the bikes on their internet portal.

They also offer electric bikes for rent. According to the company, it sold 2,000 subscriptions last year. These models will also later be available on the internet from Rebike.

The company now employs more than 100 people. Half of them work at the head office in Munich. The other in Kempten, where Rebike processes subscription returns and disused rental bikes for sale. It is probably the biggest bet on a golden future: On 3000 square meters, the two founders have created the capacity to overtake 50,000 bicycles a year.

Bernik has already founded several companies and invested in start-ups. Co-boss Erger brings experience from large corporations. The former amateur cyclist has worked for Sony, Nokia and Microsoft.

Used e-bike

Rebike expands its business to France and in the future to the Netherlands.

(Photo: Rebike Mobility)

The duo always manages to convince other financiers. In the spring, for example, Circularity Capital, a European investor for growth companies in the circular economy, got on board; Tengelmann Ventures and Parkshore Holding also came on board. In addition, the venture capitalists Vorwerk Ventures and BayBG Bayerische Beteiligungsgesellschaft, who are already involved in Rebike, also participated in the financing round.

“Rebike has already established itself well in the e-bike market as a specialist for used e-bikes,” says Andrew Shannon, founding partner of Circularity Capital. Now it’s about taking the company “to the next level”. Patrick Schaich, Managing Director of Tengelmann Ventures, adds: “For us, the e-bike market is a market of the future.”

Rebike is aiming for stores in the cities

The company last raised ten million euros in spring 2021. Erger does not provide any information on the assessment. Just this much: the funds should now last until 2024.

>> Read here: How investors with stocks can benefit from the bicycle boom

On the one hand, Erger wants to use the fresh money to increase the bicycle fleet. On the other hand, he aspires to the metropolises. The sporty company leader is opening the first shops in Frankfurt and Munich, and the next one could soon follow in Cologne. “There is a certain clientele who want to see the bikes on site,” he says. The company director wants to appeal to customers over the age of 55 in particular.

But that’s not all: Rebike is expanding its business outside of the German-speaking countries. The start-up has already started in France, and the Netherlands are to follow next.

Erger also invests in TV advertising. He has been promoting the e-bike subscription with a 20-second spot on the Pro Sieben Sat 1 channels since spring.

Delivery bottlenecks for new e-bikes persist

Like Rebike, the entire bike industry suffers from supply bottlenecks. According to the Zweirad-Industrie-Verband (ZIV), slightly fewer bicycles were assembled in Germany in the first half of the year than in the previous year. For three years now, more e-bikes have been built in Germany than bikes without an electric motor. In particular, there is a lack of drive components for e-bikes, said ZIV Managing Director Burkhard Stork recently. So there is a lack of batteries, chips or screens.

Sven Erger

The co-founder of Rebike used to be an amateur cyclist himself.

(Photo: Rebike Mobility)

“Companies are again fighting for every bicycle that can be built this year,” said Claus Fleischer, Managing Director of Bosch E-Bike Systems, recently at the “Eurobike” trade fair. At Bosch, electronic elements for battery management, but also for drive control, are scarce.

“We can only pass on the backlog from our suppliers to the bicycle manufacturers. This will keep us busy for the coming months and will not be over by the end of the year,” warned the manager.

The e-bike boom is attracting numerous Rebike competitors. Specialist dealers offer almost new, used electric bikes on Bike Exchange. Ebay is also teeming with offers. Speiche24.de is a marketplace for e-bikes that also offers used bikes. Swapfiets, on the other hand, is probably the best-known brand among the bike subscription companies.

Rebike sees itself as a premium provider. Although with used, but definitely high-quality bikes. The electric bikes are significantly cheaper than new models, which could prove to be an advantage in the near future – because people are keeping their money together in the face of high inflation and the Ukraine war. After a good start to the year, fewer customers are now coming to the bike shops, the two-wheel trade association reported at the “Eurobike” trade fair.

Premium provider Rebike: wheels for 7000 euros

The cheapest bikes in the Rebike online shop currently cost just under 1600 euros and are from the 2019 model year. The most expensive bikes cost around 7000 euros, they are pedelecs from the Swiss brand Stromer. They are intended for commuters, with them speeds of up to 45 kilometers per hour can be achieved.

Erger himself cannot enjoy the extraordinarily sunny summer on his bike this year. After a serious bicycle accident in the spring, he runs his company from the sofa at home. “I worked up the first bikes myself in the basement,” he remembers. In the meantime, the business is running smoothly even without the founder.

More: How industry pioneer Sigma wants to compete with Garmin and Wahoo with its bike computers

source site-15