Upway is constructing a web based market to purchase and promote used electrical bikes – TechCrunch
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 International Founders Capital.
In the event you’re conversant in the world of on-line marketplaces for automobiles, Upway will sound acquainted to you as nicely. The corporate buys electrical bikes from each prospects and firms. They test 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 staff of 5 repairpersons test every bike that arrives with a listing of 20 totally different exams. Upway can then ship the bike to prospects in a cardboard bundle — the handlebar and pedals are indifferent from the body.
On common, bikes are 20% to 50% cheaper than their unique price. You will discover merchandise from many acquainted manufacturers within the electrical bike trade, similar to Moustache, VanMoof, Cowboy and Canyon. All electrical bikes include a one 12 months guarantee.
Why electrical bikes and never regular bikes? Co-founder and CEO Toussaint Wattinne informed me that electrical bikes are the quickest rising section of the bike trade. Final 12 months, 500,000 electrical bikes have been offered in France — that’s a 30% enhance in comparison with the earlier 12 months. And but, as a consequence of provide chain difficulty, it’s not all the time straightforward to seek out and purchase a brand new electrical bike proper now.
Furthermore, there’s extra friction while you purchase a second-hand electrical bike as you don’t know if the motor nonetheless works fantastic and also you’re undecided for those who’ll have to interchange the battery while you get it. And, in fact, electrical bikes are costly items so that you need a no-fuss expertise.
Upway buys bikes instantly, which implies 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 automobile market house. Upway might comply with the identical path and develop alongside the electrical bike trade.
Picture Credit: Upway