listnride is a community bike-sharing platform, connecting people to a wide range of bikes to rent.
|Sectors||Travel, Leisure & Sport Digital Mixed B2B/B2C|
|Incorporation date||25 Nov 2016|
listnride is a bike sharing platform which connects bikes to cycling enthusiasts. People can book a variety of individual bicycles online - including road bikes, cargo bikes and e-bikes. Bikes can be rented from brands, individuals and shops, creating multiple revenue streams.
Initial market research from 2014 followed by prototyping until early summer 2016 resulted in the launch of the fully functional platform in October 2016. listnride is now up and running across Europe with focus on the cities Berlin, Munich, Vienna, Amsterdam and Mallorca.
Since Launch, we have seen our user base and listed bikes grow to more than 350% of the launch figures. Consequently we have seen a steep increase in rental transactions, with a compound quarterly growth rate of more than 200%. Six innovative bike brands are integrated offering curated bikes to the renter community. Our customer feedback on Facebook is 4.9 out of 5.
We believe our low-capital asset model plus multiple revenue streams, we feel gives a stable base to scale our business quickly.
Urbanisation and pollution levels encourage us to rethink our means of transport and an active and healthy lifestyle is gaining importance in society. With the abundance of goods and services combined with internet based technologies, the sharing economy is rapidly gaining importance. Given these major global trends, we believe that the cycling market has a bright future and that listnride could have considerable impact on contributing to a more healthy and sustainable lifestyle for it’s users.
listnride aims to be the leading bike sharing platform which connects bikes not currently in use to cycling enthusiasts. Annual bikes sales in 2015 were over 20 Million bikes in Europe alone, but we believe many are sitting idle and there is a large pool of unused bicycles available. On the other hand there is no centralized platform to our knowledge where renters can easily compare and book the bike of their style and needs online. We solve these issues by connecting supply and demand within a trusted online platform.
Substantial accomplishments to date
- Self funding of c. €62,000 in equity and debt by the two co-founders prior to official launch in 2016.
- Initial research and development, beta iPhone App and responsive Web-App.
- Launch of a fully functioning web platform in October 2016.
- Angel investment of €160.000 in October 2016.
- Recruitment of what we believe to be a strong, diverse and competent team.
- Launch of Dutch version of website, beside existing German & English versions.
- Introduction of the listnride “Lister Guarantee” offering insurance for the bike owners in case damages are not redeemed by the rider, in February 2017.
- Launch in Berlin, Munich, Vienna, Amsterdam and Mallorca.
- Delivered a white-label solution for fleet owners to easily rent out their bicycles.
- Opened 5 permanent test locations in Berlin, Munich, Hamburg, Vienna and Zurich for our brand partners to connect with potential buyers.
- Onboarded over 100 bike shops, with 32 currently being onboarded.
- Integrated 6 innovative bicycle brands on the platform, Brompton, Ampler Bikes, muli-cycles, Bonvelo, Wahoo, Vello.bike, to provide an additional revenue stream.
- Close to 1100 bikes listed.
- Almost 1750+ active users.
With the growth we have been through the last 3 quarters, we are now one of the largest peer to peer bike sharing platforms to our knowledge in the German speaking market, which is the largest bicycle market (by sales) in Europe.
Transactional Model: listnride earns money by taking a portion of the proceeds of each rental. We take 18% per booking.
Bike Brand partnerships: Brand integrations support bike brands to launch new bike models and generate direct feedback loops and sales from people renting / testing out their bikes. These partnerships are continuous income streams with a fixed and variable component.
Insurance: we plan to offer bike insurance against damage/theft for which we will receive commission. In the meantime, we have the lister guarantee in place, which provides compensation up to EUR 5,000.
We intend for our 2017 revenues to be split 33% rental transactions, 67% brand partnerships and testride programs. In the next 3 years we aim to develop towards 70% transaction revenues and 30% brand partnerships.
We believe our model scales well because, unlike community bike sharing systems such as those provided by local authorities or classic bike rental, we do not need to invest in hardware and personnel to manage the fleets. Instead, we have a lean, centralized operation, that we think can scale quickly and efficiently.
Use of proceeds
With this investment we aim to significantly grow our user base, resulting in more choice for riders and more demand for our listers and ultimately generate more rental transactions. Secondly we intend to keep enhancing our product with new features to make renting more and more easy and efficient.
We plan to allocate the funds as follows:
With your investment we will be able to further build our company and gather all data and feedback ins and outs to create a playbook for successfully entering cities & regions by Q4 2017/Q1 2018.
Please note that there are directors' loans of €52,228 outstanding in the company. The interest on these accrues at 3% a year, and funds raised will not be used to pay back this loan.
We expect to target the following groups:
Private owners looking to earn some extra money with their idle bicycles. We see many that are also interested in meeting people with a similar passion for cycling.
Bike shops and rental services get an easy digital channel to:
- Increase demand and utilization of their rental fleets.
- Grow in-store traffic.
- Expand repair and servicing business.
For bike shops that offer rental services, we will fill in the gap of what we believe to be a missing online presence and offer convenience for the customer to pick and choose the right bike for the occasion.
Brands and Manufacturers
- We intend to offer test ride fleets for building awareness and demand generation.
- Integration of brand as of April 2017: 6 in place: Brompton, Ampler Bikes, muli-cycles, Bonvelo, Wahoo, Vello.
Our experience suggests that, similar to the automotive industry, test riding before buying has become more important. Especially in the mid & high-end bike and for direct sellers, providing proper test ride options to experience the bicycle is essential. listnride learned it can add value by integrating “curated” brands into the platform combined with a test ride program.
We plan to target the following groups:
Locals in need of a specific bike type for a specific occasion.
i.e. mountain bike, child-transport bike, electric bike, racing bike, cargo bikes etc.
- Tourists who want to explore their destination on two wheels, get insider tips from locals.
- Tourists on a regional biking holiday, for example in Mallorca, Girona, or Tuscany.
- Families travelling in need of multiple bikes and looking for a one-stop solution.
- Business people on temporary assignment to another location.
Athletes and race participants, unable to transport their own equipment to an event.
Buyers in the market for a new bicycle, looking to test ride the latest models.
Characteristics of target market
Cycling: Cycling is experiencing a noticeable increase in popularity as an everyday means of transport in Europe. This goes in parallel with renewed interest in personal health and fitness, and with mounting concern over the environmental damage caused by road traffic.
Sharing Economy: The sharing economy generated revenues of €3.6bn and facilitated €28bn of transactions within Europe in 2015, with double digit growth projected. In Europe at least 275 sharing economy platforms have been founded and there is a quickly growing participation across European consumers, as both users and providers. (PwC Research).
Bike Sharing: Between 2008 and 2013 alone, the global bike sharing market saw 34% growth p.a., reaching a market volume of €1.3bn. The market is expected to grow by 20% p.a. until 2020 – Then, the market will be between €3.6bn and €5.3bn. (Roland Berger Research).
Whilst bike sharing schemes (e.g. Nextbike, Santander Cycles) can be great to quickly move from A to B, we believe there is a need for bicycles in different categories for a longer period - half day, day, weekends, weeks long. Short-term-use models don't work for these needs, and we believe are the reason bike rental remains a huge market, despite the addition of increasing numbers and varieties of bike sharing services. Our experience suggests that traditional bike rental can be inconvenient and frustrating. To our knowledge, many shops who offer rental bikes cannot be easily booked online and renters regularly have to contend with paperwork.
listnride has a two sided marketing strategy, with separate channels, content and optimisations for owners and renters. Key to both of these is our dedication to meticulously tracking the impact of every action we take, and continuing to test and iterate to constantly find what works best and optimize both our marketing spend and the underlying rental platform.
As high density of local supply is key, marketing activities will be mainly with a local focus. This means we have planned the acquisition of supply by major city and or bike region and set clear targets against these target cities.
We can integrate the traditionally non-digital bicycle rental providers, which has typically lacked the option to find and book bicycles online. listnride provides them the opportunity to make their fleet available online. To increase our reach and search engine relevancy, bike shops will integrate a small plug-in that displays all their bikes listed with listnride on their own page.
Rentals of half a day and more are, we believe, also the best trade off between bicycle owner time and earning potential. We think this is one of the reasons we see low attrition of our fleet, with organic growth of bicycles outpacing attrition.
We use the full complement of digital channels, including social media, search, and display advertising. Additionally, we actively pursue offline marketing, especially being visible on dedicated bicycle and lifestyle fairs and organizing bicycle rides for our community.
The principle target market of listnride is half day or longer rental of bicycles in bicycle friendly cities and regions. This is exactly where traditional bicycle rental plays today. We believe that this focus distinguishes us from other bike sharing businesses and offers several advantages.
Our focus on rentals longer than a half day ensures that we are targeting the highest-value rentals in the market, ensuring healthy per-transaction margins.
listnride could be called “AirBnB for bikes” and it does have all the advantages of a low-capital asset, network/platform business model. However, listnride has multiple distinct revenue streams, thanks to its various channels, including transaction fees on all rentals, brand marketing and recurring advertising fees, test rides, and branded events.
Our research suggests that there are few competitors and that their offerings are largely local. We see the key to staying ahead of the competition as displacing traditional models, and growing the share of peer-to-peer supply as a whole. With that in mind, we believe that we're fortunate to have substantial advantages over both traditional bike rental, as well as traditional bike sharing.
When compared to bike rental, in our view the key advantages of our offering include:
Better selection: By pulling from the set of bicycles people actually buy, instead of needing to buy large numbers of standardised fleet vehicles, we can offer a greater diversity and range of makes and models than any bike rental.
Less traveling to find a vehicle: With hundreds of bicycles throughout cities, we can have bicycles much closer than individual bike rentals, who are limited by the number of rental lots. Some of our owners even offer delivery!
When compared to bike sharing:
- We believe we have a cost advantage, with no need to buy bicycles, maintain a distributed fleet, and arrange parking. All these costs are sunk costs for our owners, and so our fleet is self maintaining in this way.
- We believe we have better pricing for listers, with no need to monetize by the minute. Urban bicycle rental schemes need to be sponsored as the rental fee by itself can not cover for the costs involved. This is not so on listnride: listnride has no fee to join, and offers simple, “half day”, “day”, and “weekly pricing”.
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