The bike market is experiencing a real boom with double-digit growth (14% for traditional bikes and 44% for e-bikes in 2020). But if the new market suffers from the lack of components and accessories with deliveries that are postponed for several months, it is the second-hand market that is co-nominating for the goose that lays the golden eggs. In particular, electric bicycles are the fastest growing segment.
“Last year, 500,000 electric bicycles were sold in France, an increase of 30% over the previous year,” said Toussaint Wattinne, CEO of Upway, an online marketplace specializing in pedal assisted bicycles. Born a few months ago, Upway has just closed a record 5 million euro seed round from Sequoia Capital and Global Founders Capital.
Toussaint Wattinne and Stéphane Ficaja, co-founders of the startup, met at Uber after driving Uber Eats in Northern Europe and North America respectively. The Upway idea came to Toussaint, a cyclist, while he was cycling this summer with his wife, he on a normal bike, she on an electric bike.
The business model of the young startup is simple: it buys electric bicycles from both individuals and companies, checks them and repairs them if necessary. Subsequently, the “reconditioned” bikes are sold on the website with a price from 20% to 50% less than the price list and with a one-year warranty.
The startup is based in Gennevilliers near Paris, where a team of five mechanics check the bikes and certify their operation with a thorough inspection.