Buzzbike completes funding round after e-bike subscription demand soars sevenfold
London-based Buzzbike has announced the completion of its latest funding round, bringing total investment to £7.2m.
The micromobility subscription business said it had seen 700 per cent growth in demand for its e-bike services over the last year. It is now giving the option to the public to become shareholders via a crowdfunding campaign.
Current investors include 50Oceans and the British angel investor Richard Fearn. Shareholders include the Adidas family and US-based VC Lake Nona Sports and Health Tech fund.
Co-founder and chief Tom Hares said: “The continued growth we have seen despite the broader economic environment underscores the macro trends that underpin our business – addressing the climate crisis, crippling congestion in cities, a mental and physical health epidemic, the shift to electrification in mobility and the unstoppable migration to access over ownership.
“Securing this funding will allow us to maximise the huge demand we have seen for our e-bike service as we hit the peak Spring and Summer cycling season.”
Buzzbike aims to eliminate barriers to accessing premium bikes with a subscription fee of £18.99 per month, including coverage for theft and maintenance. Its service operates in London and Manchester.
It said subscription models like itself had seen “rapid growth” in spite of a decline in the UK retail sales market.
Dr. Hans Dohrmann, founder of Pawao capital, who are investing in the latest funding round, said: “I have followed Buzzbike’s journey for a few years now and continue to be amazed at how they have disrupted the cycling model.
“We fully support their strategy to double down on electrification – High priced e-bikes combined with a subscription model democratises a desirable product many couldn’t afford to own
so makes the perfect match.”
Cycling in London, including e-bike usage, is on the rise. The latest Transport for London (TfL) travel report estimates cycling comprised around 4.5 per cent of all journeys in 2022, up from 3.6 per cent in 2019.
E-bike and scooter start-up Lime recently pledged to invest £25m in the UK capital after record growth last year.