German e-bike subscription service Cycle has acquired Ebike4Delivery to expand its last-mile delivery operations and launch in the UK.
Dutch bicycle company Ebike4Delivery has manufactured more than 7,000 custom e-bikes for over 1,000 customers including delivery chains such as Domino’s Pizza, Pizza Hut and New York Pizza.
The acquisition will see these leasing contracts, as well Ebike4Delivery’s team and bicycles, transferred to Cycle under its own operations in 85 cities across Germany, the Netherlands, Italy, Poland and Austria.
“We will be leveraging the Gen3 Bike from Ebike4Delivery to serve restaurants and franchise companies who highly value its robustness,” Cycle Co-Founder and CEO Luis Orsini-Rosenberg told Zag Daily. “This is particularly exciting for markets like Germany and Poland, where Ebike4Delivery currently has a limited presence.”
Ebike4Delivery’s Gen3 E-bike is its latest model designed to be a low-maintenance option for the delivery market with its robust frame.
The alliance between the two companies aims to increase operational efficiencies, reduce costs, and expand Cycle’s product range by merging their sales, software and product development expertise.
“We will combine our maintenance capabilities and sales efforts, positively impacting our unit economics. Cycle will benefit from Ebike4Delivery’s manufacturing expertise, while Ebike4Delivery will leverage the advanced Fleet Management Software developed by Cycle.”
The acquisition comes one year after Cycle raised €10.3 million in a Series A funding round led by Scania Growth Capital, and the company has raised over €20 million euros in total.
Cycle’s primary expansion focus is the UK market with preparations for the launch already underway.
Both Cycle and Ebike4Delivery will continue to operate independently for some months following the acquisition for a smooth transition, and the Ebike4Delivery brand will not change.
