Cowboy and VanMoof are two e-bike companies that share many similarities. Both companies have received significant investments from venture capitalists in recent years but have also experienced heavy losses during periods of rapid expansion. They both focus on direct-to-consumer sales of premium e-bikes that are equipped with advanced software and sensors. Both companies have also faced operational challenges in the post-pandemic e-bike market.
However, Cowboy CEO Adrien Roose assures that his company is on more stable ground compared to VanMoof. One notable difference is the prospect of profitability. Cowboy has stated that it is close to profitability, with EBITDA losses of around €21 million over the past few years. Meanwhile, VanMoof has reportedly lost nearly €80 million in each of the last two years. Cowboy recently issued a press release claiming it is on track to achieve profitability by the third quarter of 2023. Roose now confirms that they are on track to achieve profitability within the current quarter and expects a profitable 2024.
Despite the similarities, Cowboy has several factors that set it apart from VanMoof. Cowboy assembles its e-bikes close to its European customers, while VanMoof’s e-bikes are assembled and distributed from Taiwan. Cowboy has also expanded its distribution beyond direct-to-consumer sales by partnering with independent bike dealers and retailers. This expansion allows Cowboy to transform its after-sales model and provide support through a network of bike shops. In contrast, VanMoof primarily relies on its branded stores for direct-to-consumer support.
To address concerns about profitability and ensure reasonable profit margins for Cowboy and its bike shop partners, the company recently raised its prices. Cowboy launched a less expensive “Core” configuration of its e-bike models, offering fewer features but lowering the overall price. However, the company still increased prices on the higher-end configurations. Despite this price increase, Cowboy emphasizes that it is achieving operational efficiencies, such as a 50% decrease in inventory and 20% reduction in production costs. These efficiencies, coupled with the price increase, are expected to contribute to the company’s long-term success.
While VanMoof’s recent bankruptcy filing presents an opportunity for Cowboy, the company expresses sympathy for its competitor’s situation. Cowboy acknowledges the positive impact that VanMoof has had on the industry, noting their role in changing the perception of e-bikes and making them more appealing to a broader audience. Cowboy has even released a cheeky app called Bikey in recognition of VanMoof’s achievements, earning goodwill in VanMoof communities.
Overall, despite the similarities to VanMoof, Cowboy believes it is in a different position and is focused on achieving profitability. The company emphasizes its partnerships with bike dealers, operational efficiencies, and ongoing revenue growth as signs of its success. With a commitment to delivering high-quality e-bikes and adapting to market trends, Cowboy aims to establish itself as a key player in the e-bike industry.
