As popular electric bike brand VanMoof faces insolvency, rival company Cowboy is looking to reassure and avoid a domino effect in the industry.
The famous Dutch electric bike brand VanMoof is living through dark days. The company recently filed for liquidation with the court in Amsterdam, marking the end of an era.
VanMoof, founded in 2009 by brothers Ties and Taco Carlier, had a vision to modernize the bike. Their aesthetic, with a minimalist and recognizable frame, has become the brand’s signature. The switch to electric in 2014 then propelled VanMoof to the ranks of the leaders in the electric bike industry. Their integrated approach, offering a unique experience to users, has influenced many companies, including Angell, the French startup founded by Marc Simoncini.
The shock wave in the electric bike industry
VanMoof’s bankruptcy is not without consequences. It shook the entire industry, prompting competing companies to react. This is the case of Cowboy, the Belgian electric bike company. With a philosophy and products similar to those of VanMoof, the firm was forced to reassure its shareholders.
In a letter to its shareholders, Adrien Roose, co-founder and CEO of Cowboy, insisted that his company’s situation was quite different from that of VanMoof.
Cowboy reassures its shareholders
According to Adrien Roose, Cowboy is on the rise. 2022 revenues have tripled from the previous year and significant growth is being recorded every month.
Following the launch of their new models, Cruiser and Connect, the company expects July sales to surpass their targets, making it the best month of the year.
We are on track to achieve our profitability target in the current quarter, and on a yearly basis next year.
“We are convinced that the strategy we are implementing is the right one for the company”, said Adrian Roose. Profitability is considered for the current quarter and next year, on an annual basis.
The Cowboy strategy: a solid foundation
According to Adrien Roose, Cowboy’s business model is based on strong unit economics and excellent design and supply chain. Its main asset, according to him, software innovation, would be a key differentiator in the industry.
Following the announcement of VanMoof’s bankruptcy, Cowboy quickly launched Bikey, a free application for VanMoof users to allow them to continue using their bikes in the event of the Dutch brand’s servers being shut down.
Angell: a questionable silence
French company Angell has yet to publicly respond to VanMoof’s situation. However, it recently launched big discounts on its bikes, and launched a campaign for its first models at a reduced price on the Veepee site, for 1000 euros. This decision can be interpreted in different ways: is Angell looking to empty its stocks, or is it simply trying to limit the damage in anticipation of a possible crisis?