Whizz, an e-bike subscription startup based in New York City, is capitalizing on the city’s crackdown on cheap, uncertified e-bikes. While some may see the regulations as a challenge, Whizz views it as an opportunity to provide gig delivery workers with safe and high-quality e-bikes. The startup offers subscriptions and rent-to-own schemes for as low as $139 per month, with additional perks such as service, maintenance, and anti-theft protection included.
Founded in 2022, Whizz recently raised $12 million in funding to expand its fleet of e-bikes, develop e-mopeds, and enter new cities like Boston, Chicago, Miami, Philadelphia, and Washington, D.C. The company aims to manage 40,000 e-bikes in the NYC area in the next three years. Despite being a relatively new player in the e-bike subscription space, Whizz’s main competitor is Zoomo, an Australian startup with a presence in NYC and some European cities.
While the e-bike subscription market is still emerging, it presents both opportunities and challenges. Other micromobility subscription services in NYC have come and gone, highlighting the difficulties of sustaining a hardware-as-a-service business model. However, subscriptions offer repeat revenue and can be leveraged to improve margins if operations are kept lean and efficient.
Whizz’s success lies in its proprietary software that streamlines operations and its culture of bootstrapping. The startup’s enterprise resource management (ERP) system cuts costs by 35% and achieves an 85% fleet utilization rate. The software provides analytics on repairs, warehouse logistics, customer information, and remote control of bikes. Whizz also uses an internal scoring model to ensure responsible renters.
In addition to its software advantages, Whizz differentiates itself by designing e-bikes specifically for food delivery workers. The bikes are reliable for up to 1,000 miles per month, have large batteries for extended range, and undergo UL certification. Whizz’s customer service is available in six languages to cater to NYC’s diverse population.
While Whizz’s future plans may be affected by new tariffs on Chinese imports, the company is confident in its ability to adapt. It owns its intellectual property and can shift production to new partners in India or Vietnam. As for scaling across the U.S., Whizz aims to work its way down the East Coast before expanding nationally. The startup also plans to introduce new form factors, such as e-mopeds and potentially electric vehicles, to cater to a broader range of delivery workers.
Investors are optimistic about Whizz’s potential. Sergey Toporov, a partner at Leta Capital, praised the startup’s contribution margin and efficient ERP system. While many venture capitalists have shifted their focus away from micromobility, Leta Capital sees Whizz as a hidden gem with fundamental business value.
In conclusion, Whizz is well-positioned to capitalize on the evolving e-bike market in New York City. With its focus on quality, efficient operations, and expansion plans, the startup aims to establish itself as a leader in the e-bike subscription space while providing gig delivery workers with affordable and reliable transportation options.