London-based bike subscription platform Buzzbike, has raised £1.7m as Londoners seek alternatives to trains, the Tube and busses to mitigate potential COVID-19 infection risk.
This latest fundraising round brings Buzzbike’s total funding to £3m. Buzzbike has raised funds from a variety of sources, including the UK government’s The Future Fund, sports tech accelerator leAD, Cooper (the company behind the iconic Mini Cooper) and Paddy Byng an early investor in Rapha and Chairman of Brompton.
Buzzbike was launched in 2016, to be the easiest option for those who want to start cycling in London. For £29.99 per month (or from £17 per month on the Buzzbike to Work scheme), Buzzbikers receive their own premium bike, complete with protection against theft, on-demand maintenance and huge discounts on essential kit such as a helmet.
Members are also incentivised to cycle via the Buzzbike app through data tracking (money saved vs. public transport, calories, carbon offset, miles and hours in the saddle) and prizes, such as free coffee, for going on their first Monday to Friday commute. There are no long-term contracts or commitments and members can cancel at any time.
The company recently recorded a 440% surge in sales from February to May, peaking after the UK government announced a £2bn package for cycling to relieve pressures on public transport in early May.
Speaking about the latest funding round, Tom Hares, CEO & co-founder of Buzzbike said, “COVID is driving seismic shifts in the way people move around cities. As Londoners look forward to a new way of living and working, there’s an opportunity to change our daily lives to be healthier and more sustainable.
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“Over the last few weeks, we’ve seen a record-breaking level of interest in our service. Our latest investment round will give us the means to invest into technology, product development, key hires and capability to scale to the demand we’re witnessing”.
Horst Bente, co-founder of leAD Sports Accelerator and Buzzbike investor, commented: “At leAD, we support outstanding startups like Buzzbike in the honor of my grandfather, Adi Dassler. We are proud to have invested in this team and we are excited to see Buzzbike’s development.
“In these challenging times, they have the opportunity and the right product to encourage city commuters to adopt a new lifestyle – healthier and more active. And we are here to help them achieve this ambitious goal”.