Since its launch in 2021 in France, Upway has revolutionised the way that people purchase e-bikes.
Upway sources used e-bikes and refurbishes them at its centers, before applying a warranty and reselling them online at a discounted price.
The firm is now present in eight markets globally, including the US where it launched in March 2023, and has raised more than $60m to date.
“Our business model is simple, brings a ton of value to our customers and we are incredibly ambitious,” Maxime Renson, Upway’s US General Manager, tells Zag Daily.
“Upway has refurbished and sold over 50,000 e-bikes since 2021 and delivered a $100m GMV [Gross Merchandise Value] run rate in 2024 alone. The target for this year is to double that number.”
Rapid growth
In addition to its US operation, Upway has a presence in France, Germany, Belgium, the Netherlands, Spain, Austria and Switzerland, which it serves from UpCenters located in Paris, Berlin, Mechelen and Dusseldorf.
“Next on the list in terms of expansion is Canada, Japan, Australia, Portugal, Italy and potentially the UK,” Renson says.
After spending nearly seven years at Uber, Renson joined Upway in November 2022 as it was preparing to launch in the US. He was attracted to the firm because of the impressive growth it had delivered in its first year and after looking at statistics depicting growing e-bike usage, he decided to make the leap.
A year after his arrival Upway raised $30 million during a Series B round backed by Sequoia and Korelya Capital, bringing total funding for the firm to more than $60m.
“Our goal is to conduct a Series C round within the next couple of years,” he explains.
“We could be profitable tomorrow, but it is about managing that with our growth ambitions and building the category.”
As it stands, there are 1,300 e-bikes available for purchase on the Upway platform in Europe, and 700 e-bikes in the US. Plans are in place to grow those numbers substantially during 2025 with the opening of a new warehouse in LA, its second in the US (the first is in New York).
“The LA UpCenter is set to open this month and should allow us to increase the number of e-bikes on our marketplace up to around 1,400 as of March,” Renson says.
“We already ship everywhere in the US, but having this UpCenter will provide us with that footprint in the country’s biggest market. Other benefits will include cutting logistics costs, reducing delivery wait times, and offering a click & collect option in a prime location in LA which is good for our customers.”
Germany’s used e-bike market booms
Upway US represents 20% of Upway’s total business, while Germany currently holds the biggest share.
“The e-bike market is really big in Germany,” says Renson.
“I think around two million were sold last year, while 700k e-bikes were sold in France and one million in the US. This is down to the tax incentives that Germany has in place which makes buying an e-bike much cheaper.”
To drive its growth within Germany, Upway partners with leasing firms that gave it a pipeline of used e-bikes to purchase.
Today, the used e-bike market in Germany is two-times the size of the market for new models.
“The selection of used e-bikes is really broad in Germany which is what attracted us to the market,” continues Renson.
“In the UK, that volume does not exist yet which makes setting up a well-stocked marketplace more difficult.”
Though there is a growing number of e-bikes hitting the second-hand market in Germany and beyond, Upway has been able to successfully differentiate itself in the market. Renson believes there are three reasons for this.
“Firstly, we believe that we have the deepest and widest selection of e-bikes in the world in terms of brand, model, category and price,” he argues.
“Secondly, our e-bikes are usually 35% to 45% cheaper versus retail, with even better discounts available in certain instances. And thirdly, we are much more trustworthy than many of the second-hand sellers on platforms like Facebook Marketplace.
“The e-bikes we sell are restored by professional mechanics and come with a 14-day money back guarantee and one year warranty. We also have close to 10,000 reviews on Trustpilot, rating us 4.7 out of 5.”
What gives Renson further confidence in Upway’s future is the trajectory of e-bikes.
“The e-bike market has grown incredibly fast over the past few years, while mechanical bike sales have remained steady. I think it has huge potential.”
A model that works
In addition to partnering with e-bike leasing firms to buy their second-hand bikes, Upways also purchases directly from individuals, bike shops, businesses and demo fleets.
“We nurture these relationships because building recurring channels is really important for maintaining our broad supply selection,” Renson explains.
From a consumer perspective, the presence of Upway has helped reduce the barriers to entry that previously existed around purchasing an e-bike. A new model will often cost around $3,000, which is often unaffordable for many people.
“Our marketplace improves the affordability of e-bikes and can reduce the financial disparities that exist in cycling,” Renson says.
“By making e-bike ownership possible for more people, we can help replace short car trips which reduces noise, pollution and waste. In the US, 80% of car trips are between zero and 10 miles, the majority of which could be replaced by an e-bike.”
While Upway’s embrace of the circular economy may have positive environmental externalities, the company says it takes safety very seriously.
“We have decided not to refurbish batteries due to the risk of fire and will replace any that are not up to standard.
“If you look at our range, around 90% have a battery from a labs-certified brand and every one has been carefully checked over.”
With the goal of doubling in size during 2025, Upway is clearly cognisant of the opportunity the e-bike market holds. Whether Renson’s prediction about it outstripping the market for mechanical bikes within five years comes true, there are few signs of its momentum waning.
