Dance, the German startup that offers electric bikes and mopeds through subscription packages, has recently reached a significant milestone. The company now boasts over 10,000 active and paying members. This achievement comes on the heels of Dance’s successful funding round, in which it secured additional investments from prominent individuals and firms such as 4P Capital, GDTRE, and Carl Pei (Nothing).
Key Takeaway
Dance, the e-bike subscription service, celebrates a major milestone with over 10,000 active subscribers. Amidst a competitive market, the company’s unique subscription-based model has resonated with customers, driving its success and attracting significant investments. As the demand for electric bike subscriptions continues to grow, Dance remains well-positioned to capitalize on the market’s potential.
Rapid Funding Success
Since its inception, Dance has been successful in securing funding to support its growth. In 2020, the company raised $17.7 million (€15 million), followed by $19.4 million (€16.5 million) in 2021, and another $13 million (€12 million) earlier this year. The recent investment round, the exact sum of which remains undisclosed, further cements Dance’s position as a key player in the e-bike subscription market.
The Rise of E-Bike Subscription Services
The COVID-19 pandemic has resulted in a surge in demand for electric bikes, contributing to the success of companies like Dance. Other manufacturers and bike-as-a-service startups, such as Cowboy and Motto, have also seen significant growth during this period. However, the recent bankruptcy of Amsterdam-based VanMoof has raised questions about the viability of operating unconventional electric bike models.
Despite the challenges faced by the industry, Dance continues to thrive with its unique business model. Unlike traditional bike sales, Dance offers customers the option to pay a monthly subscription fee that includes repairs and insurance, granting them access to a personal electric bike. Plans in cities like Paris and Vienna start at €49 per month, with a minimum commitment of one year.
Expanding Offerings
In addition to electric bikes, Dance also provides electric mopeds in select cities. Furthermore, the company offers a B2B solution for businesses looking to provide electric bikes to their employees. The cost of the subscriptions, in addition to potential add-ons such as accessories, allows Dance to generate substantial monthly turnover. However, further information about unit economics, including bike costs, churn rate, and average subscription length, would provide a more comprehensive understanding of the company’s financials.
