E-bike subscription Dance has 10,000 subscribers

Dance, a German startup that rents electric bikes and mopeds, has two interesting developments. First, the company added a few investors to its €12 million funding round. Second, Dance has 10,000 paying members.

Dance says little about funding. The company isn’t disclosing the second tranche’s amount, which usually means it’s small. The startup had high-profile investors like 4P Capital, GDTRE, Carl Pei (Nothing), Alex Asseily (Jawbone, Lilium), Mads Fosselius (Dixa), and Andhim.

Dance raised $17.7 million (€15 million) in 2020, $19.4 million (€16.5 million) in 2021, and $13 million (€12 million) this year. Dance has been raising money quickly.

Many electric bike companies saw a Covid boom during the COVID-19 pandemic. Cowboy and VanMoof raised large funding rounds. Bike-as-a-service startups like Dance and Motto thrived too.

Only two months ago, the Amsterdam court declared VanMoof bankrupt. This chilling effect affected electric bike startups. Many wondered if unconventional electric bikes had too high operating costs.

Dance seems to be on track with new backers and more cash. The startup doesn’t sell electric bikes, so unit economics are different.

Customers pay a monthly subscription for a personal electric bike with repairs and insurance. Customers never own those bikes. Plans start at €49 per month with a one-year commitment in Paris and Vienna. Plans start at €59 per month in Berlin, Hamburg, and Munich.

If they don’t want a one-year contract or add accessories like a child seat or basket, many customers pay more. In some cities, Dance offers electric mopeds. Dance also offers B2B electric bikes to companies.

Overall, Dance has 10,000 paid subscribers. The company probably makes hundreds of thousands per month. It doesn’t mean much without knowing the bike cost, churn rate, average subscription length, and all costs associated with repairs and refurbishments for new customers. But electric bike subscriptions are growing in popularity.