Hardly available. Quite expensive. These two circumstances are reasons why people all over Europe fail to buy an ebike. One way out of this dilemma could be second-hand ebikes. But who buys such a complex product privately from an unknown person? Nowadays, there is often not enough trust to do so.
Professional shops for used ebikes are now filling exactly this gap. At a time when “refurbished” is becoming more and more established as a concept in our consumer behaviour, this seems only logical. One of the currently largest suppliers on the market for used ebikes is Upway. We spoke to the company from France about how it implements its business model and how it is driving its international growth. Before we get into the conversation, though, a few general facts about Upway.
Overhauled and greatly reduced
Just over a year ago, in 2021, Frenchmen Stéphane Ficaja and Toussaint Wattinne founded the company. Both knew each other from a joint job at Uber, the US-based ride service provider. Their goal is to give millions of used electric bicycles a second life in the coming years through a technical overhaul and resale.
Upway founders Stéphane Ficaja (left) and Toussaint Wattinne
At Upway, professional mechanics check 20 points of the used ebike as part of the maintenance and replace anything that needs to be replaced. In the online shop, the bikes are then offered at prices that are between 20 percent and 60 percent lower than the manufacturer’s original recommended price. Such a reconditioned bike comes with a one-year warranty on the motor, battery and other electronics. After you buy an ebike from Upway, it will be delivered directly to your home.
Sale is also an option
At the same time, you as a private person can sell your ebike to Upway, just like companies. For this purpose, the company provides a form on its website. In the form, you describe the general condition of the ebike, add pictures for documentation and name a price at which you want to sell the bike to Upway. In case of an agreement, Upway will have the bike collected from your home.
We estimate that there are currently around 700 ebikes in Upway’s online shop. The company describes itself as “the number one for refurbished ebikes in Europe”.
How many employees are currently working for Upway?
We have a total of 50 employees working in our offices and warehouses in Paris and Berlin.
In which countries is the company active?
Besides France and Germany, we are present in Belgium and the Netherlands.
Which target group does Upway focus on with the refurbished ebikes?
With more than 1,000 bikes now available online, our target group is extremely broad. It ranges from commuters who ride an ebike to work, to families looking for a cargo bike, to people who like to extend their cycling trips and want to switch to an ebike to do so.
Upway’s motifs usually focus on younger adults in an urban setting.
Do prospective customers from Germany differ in any way from those from other countries?
Our audience from Germany is very diverse. What is particularly noticeable is the interest in higher-quality bikes, especially from German brands.
Where do the ebikes that are later sold in the online shop come from?
Firstly, Upway buys used ebikes from private individuals. Secondly, we work with hundreds of bike shops. The dealers are given the opportunity to buy back their customers’ old bikes if they buy a new one in return. They then pass the old bike on to Upway. And the third partner is leasing companies from all over Europe, whose paid-off models we refurbish and sell.
How does Upway ensure that no stolen bikes are sold?
We have really thought about this in detail. Bike theft is a real problem and nobody wants to resell stolen bikes. First, Upway matches the frame number of each bike with national databases in countries where stolen bikes are registered. We also check the sellers’ IDs and make sure that the original charger and keys are present. As we only pay by bank transfer, it is guaranteed that the transaction is registered in the seller’s name.
What are the specifications for handling used batteries?
As part of our 20-point inspection process, we measure the battery’s charge cycles, mileage and condition. If it has less than 80 per cent of its original capacity, we overhaul it.
Are original parts always used as replacement parts?
Quality and safety are our top priorities. As part of our maintenance, we try to use original parts as often as possible. If these are not available, we use the best possible spare parts to achieve our quality standards.
Upway has had a very successful start and has already raised around 30 million dollars in several rounds of financing. Which companies or individuals are among the biggest investors?
The global venture capital funds we work with include Sequoia and Exor Seeds from the USA, Global Founders Capital from Germany and Origins, the venture capital fund of former French world football champion Blaise Matuidi.
Rarely do you find a refurbished ebike in a rapeseed field. You have a better chance in the Upway online shop.
What is the importance of Germany as the largest European market for ebikes for Upway?
Understandably, a very big one. For good reason, our only warehouse outside of France is currently located near Berlin. Four times more new ebikes are sold in Germany than in France, and almost ten times more e-cargo bikes! So, there are millions of ebikes that have been on the roads for several years and will soon be replaced or discarded. It is crucial that these bikes are professionally refurbished to get a new lease of life and avoid unnecessary waste. With an average price of 2,800 euros, they are still expensive. By offering deals up to 60 percent below the price of new, Upway is helping to make ebikes more affordable for more people across the country.
Is it correct that an expansion to North America is even being prepared?
Yes, early next year we will launch in the US. Maxime Renson, the person in charge locally, is currently recruiting our team and preparing to open our first warehouse in Brooklyn, New York.
Thank you very much for the interview.
Pictures: Upway France SAS