Bike subscription pioneer Buzzbike will shut down its services this week, as a result of economic challenges in the cycling industry.
Founded in 2016, the company has supplied its fleet of city bikes and e-bikes to residents in London and Manchester at a monthly cost, helping 20,000 people cycle in its eight-year lifespan.
Recent market woes, however, have led the company to write a statement, in which it announced it came “bearing sad news”.
“We have taken the very tough decision to close the business due to escalating costs and difficult economic conditions that have impacted the whole bike industry,” read the statement, published on Buzzbike's website earlier this month.
The brand confirmed it will continue its service until this Friday, 15 November, when customers will be able to buy their rental bikes outright.
“To continue delivering on our mission to encourage people to cycle, we’re offering our riders the option to buy their current Buzzbike (and lock) at an extremely discounted price,” the statement continued. “If you’re buying your Buzzbike-EZ, the battery is also included.”
Created by Tom Hares and Andy Nunn, Buzzbike offered an all-in-one solution for city cyclists, providing them with a bike and a lock, as well as theft replacement and repairs. Monthly fees began at £18.99 for its single-speed city bike, and £59.99 for its urban e-bike.
The founders hoped that flexible bike ownership would help “accelerate the shift to sustainable travel for everyone”.
Since the Coronavirus pandemic, cycling brands have struggled, victims of a sharp fall in demand following a popularity spike.
It is unknown when Buzzbike’s woes began, but the company’s annual accounts in April 2023 showed it owed £3.7 million to creditors, due within one year.
Buzzbike’s closure comes at a time of rapid growth for pay-as-you-go e-bike schemes in UK cities. In London, brands like Lime, Tier and Human Forest operate around 40,000 e-bikes, available for hire via mobile apps.
In September this year, Brent Council in north-west London threatened to ban Lime bikes, saying inconsiderate parking from users was “causing havoc” on the streets. An agreement was reached last month between the council and the brand, and no ban was enforced.
