Meet Upway, a French startup that’s constructing a market for second-hand electrical bikes. The startup simply raised a $5.7 million (€5 million) seed spherical from Sequoia Capital and World Founders Capital.
In the event you’re aware of the world of on-line marketplaces for vehicles, Upway will sound acquainted to you as effectively. The corporate buys electrical bikes from each clients and corporations. They examine them and restore them in case one thing is damaged. After that, Upway lists and sells the electrical bikes on its web site.
Proper now, the startup has a warehouse in Gennevilliers close to Paris. A group of 5 repairpersons examine every bike that arrives with a listing of 20 completely different exams. Upway can then ship the bike to clients in a cardboard package deal — the handlebar and pedals are indifferent from the body.
On common, bikes are 20% to 50% cheaper than their unique value. You’ll find merchandise from many acquainted manufacturers within the electrical bike trade, corresponding to Moustache, VanMoof, Cowboy and Canyon. All electrical bikes include a one yr guarantee.
Why electrical bikes and never regular bikes? Co-founder and CEO Toussaint Wattinne instructed me that electrical bikes are the quickest rising phase of the bike trade. Final yr, 500,000 electrical bikes had been offered in France — that’s a 30% improve in comparison with the earlier yr. And but, as a result of provide chain concern, it’s not all the time straightforward to search out and purchase a brand new electrical bike proper now.
Furthermore, there’s extra friction whenever you purchase a second-hand electrical bike as you don’t know if the motor nonetheless works tremendous and also you’re unsure in case you’ll have to exchange the battery whenever you get it. And, in fact, electrical bikes are costly items so that you desire a no-fuss expertise.
Upway buys bikes instantly, which signifies that it technically owns the inventory of electrical bikes. It’s going to be a capital-intensive startup. However many corporations have thrived within the used automotive market house. Upway might observe the identical path and develop alongside the electrical bike trade.