You know the bikes with the characteristic blue front tire that often obstruct the sidewalk in student neighborhoods. The blue tires may be visible everywhere in the major cities, but the deep red company Swapfiets itself has again recorded a loss of more than 14 million for 2020. Over the 2018-2020 period, Swapfiets's loss will amount to €45 million. Yet the company behind Swapfiets and investor Pon still fully supports the growth strategy. The company is growing steadily and the losses are growing with it.

According to a Swapfiets spokesperson, the losses must be accepted for the time being in order to gain market share. It must be said that the loss in 2020 was lower than the year before, after earlier this year the company had already announced that turnover had increased by almost 70%, partly due to the corona pandemic.

(text continues below image)
"settlement in new cities involves high costs in the beginning"

In 2018, Ponooc, the investment company of the family business Pon, took over 100% of the shares in Swapfiets. The family business is not only a Volkswagen importer and producer of Gazelle bicycles, but also owns Greenwheels and operates the Shuttel mobility card.

competition

Whether all these start-up losses help to keep the competition away is open to question. One of Swapfiets's main competitors is E-bike To Go. The company known for the green rims also recently introduced a new e-bike with a monthly subscription under the new brand name Noord. In response to the competitor, Swapfiets will offer a cheaper subscription to a new electric city bike. The electric bicycle has one gear, weighs more than 26 kg and offers pedal assistance up to 25 km/h. The e-bike has a range of 40 to 80 kilometers on a full battery.

sharing is the new owning

Swapfiets has been offering an e-bike for some time, the Power 7, which is more advanced, including seven gears and a more powerful electric motor. The Power 7 also has a longer range: 50 to 100 km. The subscription price is also higher: 75 euros per month. Volkswagen importer and Gazelle owner Pon had long hinted that the idea of ​​a few Delft students was a good one. And Pon keeps his promise as a moneylender. Subscription bikes come with fine print in the conditions. Read this carefully because the personal contribution can be very high if the bicycle is stolen. 

cash deficit

Swapfiets has not made a profit for years. Quote even concluded from the annual figures that Swapfiets is not a start-up, but a business unit of the immense Pon empire. That idea was reinforced because consultant Peter Mensing has to keep an eye on Swapfiets. Mensing has ties with Pon. Finally, the FD indicates that Swapfiets still finds the prospects 'promising'. “The company notes that the popularity of bicycle transport is increasing throughout Europe, which is fueled by the electric bicycle. Other trends and factors that promote cycling: attention to health, congestion problems in cities and government investments in cycling infrastructure," according to the FD. 

(SOURCE: Financieel Dagblad & Quote)

Also read: Swapfiets will collaborate with tire supplier Vittoria

Swapfiets made a loss of € 14,7 million in 2020
Print Friendly, PDF & Email