Dance's E-bike Subscription Surpasses 10,000 Active Members
Dance, the German startup renowned for its electric bike and moped subscription services, has made significant strides on two fronts. Firstly, the company has successfully attracted a group of additional investors, bolstering its recent €12 million funding round. Secondly, Dance has achieved a milestone by amassing a sizable base of 10,000 active, paying subscribers.
While specific financial details about the recent funding round remain undisclosed, this infusion of capital appears substantial, given the notable high-profile investors who have joined Dance's journey. Among these investors are 4P Capital, GDTRE, Carl Pei (co-founder of Nothing), Alex Asseily (known for Jawbone and Lilium), Mads Fosselius (from Dixa), and Andhim.
To put this achievement into perspective, Dance has been on an impressive fundraising spree in recent times. The company secured $17.7 million (€15 million) in 2020, followed by $19.4 million (€16.5 million) in 2021 and an additional $13 million (€12 million) earlier this year. This rapid succession of funding rounds highlights the growing demand and investor confidence in the electric bike and mobility-as-a-service sector.
It's worth noting that the meteoric rise of electric bike companies like Dance can be attributed, in part, to the surge in demand during the COVID-19 pandemic. Manufacturers such as Cowboy and VanMoof experienced substantial financial backing during this period. Similarly, bike-as-a-service startups like Dance and Motto thrived as they catered to the evolving needs of urban commuters.
However, there have been challenges within the industry, exemplified by the recent bankruptcy declaration of VanMoof in Amsterdam. This incident raised concerns about the sustainability of operating unconventional electric bike models.
Despite these challenges, Dance continues to maintain its growth trajectory, thanks to new investors and increased capital infusion. It's important to note that Dance's business model differs from traditional bike sales since customers pay a monthly subscription fee that covers not only the use of a personal electric bike but also includes repair and insurance services. While customers don't own the bikes outright, they enjoy hassle-free access to electric mobility. Subscription plans in cities like Paris and Vienna start at €49 per month with a minimum one-year commitment, while rates in Berlin, Hamburg, and Munich begin at €59 per month.
Notably, customers may incur additional expenses if they opt for shorter commitment periods or add accessories like child seats or baskets to their subscription. Dance also extends its offerings to electric mopeds and provides a business-to-business (B2B) solution for companies aiming to offer electric bikes to their employees.
In sum, Dance has reached a noteworthy milestone of 10,000 paying subscribers, indicative of significant monthly revenue. However, without access to additional metrics such as bike acquisition costs, churn rates, average subscription durations, and expenses related to repairs and refurbishments, it's challenging to assess the company's financial health comprehensively. Nevertheless, one undeniable trend is the growing interest in electric bike subscriptions, positioning Dance and similar ventures in a promising market.