Star Electric Bicycle Bankruptcy: If 1.6 million units are sold at a loss, it will burn out 1.3 billion yuan and be difficult to make a profit

Every E Bike sold is losing money, and the "Tesla" in the electric two wheeled Bicycle has gone bankrupt.

VanMoof, a luxury Electric Bicycle company priced at around 2000 euros, has been officially declared bankrupt by the Amsterdam court.

Subsequently, VanMoof's CEO's internal letter was also exposed by the media, stating that we had to file for bankruptcy.

For a long time, VanMoof has been regarded as the "Tesla" of Electric Bicycles and has attracted the favor of many investment leaders due to its high price and the process of hiding the battery in the body.

Why has such a popular new energy company come to this point?

01 The more you sell, the worse you lose.Why is VanMoof losing money every time he sells a bicycle?

Since its establishment in 2009, VanMoof has become a star enterprise in E-Bike because it has made many innovations in the product level, with a high level of intelligent integration, as well as high costs in marketing and supporting various services.In order to quickly open up the market, VanMOF promises to receive up to three years of free maintenance for even the cheapest products it sells, which results in VanMOF's product after-sales costs being higher than the sales price.

In addition, VanMoof Electric Bicycles typically use customized parts specifically designed for the body. Although it provides VanMOF with a product strength advantage, it is also due to the complexity of customizing and repairing proprietary components, resulting in a very long maintenance cycle.
This is even worse for VanMOF, which is already struggling with capital turnover.The E-bike industry is originally a heavily invested industry, but when demand decreases, it is easy to encounter financial problems. Unfortunately, VanMoon's largest market - the US market - has been in a state of de inventory since last year, and demand is far from what was imagined.

The industry is already sufficiently introverted, and it is necessary to achieve differentiated long-term development, otherwise no matter how outstanding it is, it may become cannon fodder.