Race to disrupt both access and sustainability in the cycling industry, ready for national and European expansion after the বাই 16.75M off new investment in children’s bike subscription services, bike clubs.
Already the UK’s largest bike-subscription scheme, Bike Club, chaired by Mike Belfort OBE – founder of Fitness First – has now received the cash injection as part of the Series B funding round. Leading the investment is Circularity Capital, a private equity firm specializing in the circular economy business – which challenges the “take-make-disposal” approach to production and use, instead encouraging waste removal, with existing investor Codex Capital.
Collecting £ 13.25M to date, bike subscription success stories, solving the hassle of buying new, quality bikes every 12-18 months as kids get older, has the ambition to pedal in Germany and France in the next 12 to 24 months.
Founded in 2016 by James Sims and Alexandra Rico-Lloyd, Bike Club is revolutionizing the bicycle industry by giving families the opportunity to subscribe to new or modified bikes and scooters online and then exchange them as their children get older.
Exceeding the fleets of Lime, Uber and Santander Cycles, the easy-to-manage monthly subscription program – costing £ 4.49 to £ 15.99 per month – currently has a network of 40,000 quality bikes and with new investments it has put it on track for 220,000 over the next three years. To climb Subscribers are now set to more than double to 80,000 next year
James, the founder of the Bike Club and father of three, formerly a special adviser to the chairman of KPMG, said: The highest level in decades. The Bike Club is on a mission to disrupt family cycling which means you will never have to buy kids bikes again. We’ve seen traction with different families across the country that use us to hang out and enjoy a healthier more active lifestyle.
Riding your family bike is a huge hassle and often quite a waste. With our unique subscription we can eliminate the hassle of getting the right quality bike and give your child the best lasting gift. Kids grow up fast and at different times, there is no point in spending বাই 300 plus on a bike, joining a bike club is the solution.
We’re focusing on family cycling and the junior market, but there are also opportunities to help parents and other adults get on the bike. Membership makes a lot of sense when you really consider the issue of ownership
The world is moving towards providing monthly, subscription and fractional ownership. We see lots of household items and consideration items being moved in this model, most cars are now purchased for monthly payments, you pay your mortgage and monthly rent, you have a TV streaming subscription, it means you will pay for children’s bikes monthly and long term Their ownership is not profitable, considering how often they need to be exchanged for the size of the next frame.
Our research tells us that if you keep a quality bike of the right size for kids, they are much more likely to ride a bike in their early years. The Bike Club is designed to make the process of upgrading a bike easy and hassle-free for parents, where children can enjoy all the benefits of cycling throughout the year.
Kids grow up fast, making this year’s bikes, next year’s headaches. Not to mention the associated costs and effects on the planet due to waste. To ensure they can experience the benefits of riding the perfect size wheel, a parent must purchase eight different bikes before their child turns 12.
Cycling is one of the best ways for kids to be active, build confidence and develop vital skills that will benefit them throughout life. Nevertheless, bikes can be a costly burden for both the family and the environment, and building just one bike emits 96 CO2 * (kg) of greenhouse gases.
And with around 12.5M unused bikes in the UK alone, there are millions of sheds and garages around the world that have become unnecessary graveyards for unwanted bikes.
You’re worried about durability, and you like the idea of a membership or you don’t want the advance cost of a quality bike, but really want your child to ride a lightweight, well-designed bike they’ll find fun and easy to ride; Or you don’t have a place to keep outgrown bikes for younger siblings, the bike club subscription model provides families with a more durable and accessible way for kids to ride bicycles. “
About 900,000 * children’s bikes are sold in the UK annually in Europe with a chance of € 4.3bn. The on-the-go cycling subscription service is on track to generate 5.8m in revenue this year, rising to £ 11m next year, with the current company valued at £ 45 / $ 57m // € 53m. The fastest growing division of the bike club is First Pedal (age 3-6 years) with an increase of 76% by 2021 v 2020.
Customers can choose from a selection of well-known, quality bike brands, including Frog, Form, Strider, Um, Pukey, Squish and Isla.
David Mowat, a partner at Circularity Capital, an expert investing in business growth in the circular economy, said: “As society faces climate change, we must work together to make better use of it, which means we should rent better things and reform them. Bike Club offers this option to thousands of families across the UK.
The bike club’s circular economy means fewer bikes have to be made each year. Each of these bikes is saving 336kg of CO2 compared to the proprietary bikes. So far, their fleet has saved 1,174 tons of CO2 versus ownership. “
Jamie Lawson-Brown, co-founder of Codex Capital and a board member of the Bike Club, said: Business being the first C-19 lockdown height.
We have worked closely with management, including navigating global supply chain disruptions, and today is a very strong and very well capitalized business. The simple and convenient model of the bike club gives customers the flexibility to make the right choice for their kids and their wallet, and the business is perfectly positioned, where customers are increasingly focused on the environment and combined with financial recession, rising electricity prices and financial problems. Inflation
We look forward to working closely with Circular Capital and Management to build the business into the next phase of index growth. ”
