After the on-site visit to Upway near Berlin's new airport and an in-depth interview with CEO Toussaint Wattinne, my thoughts swung wildly between "Why didn't anyone come up with this brilliant idea before?" and "How can you voluntarily tie such a logistics hunk to your leg?". Upway has only been on the market for two years, but the company has reached dimensions that make you pause for a moment when you enter the rented hall.
The initial spark for the trade in used e-bikes came to the former Uber manager during a cycling holiday with his family in the lush greenery of Scotland. The reason why the second-hand market for pedelecs and the like had previously been so inconspicuous in comparison to organic bikes, virtually non-existent, was quickly found. According to the French CEO, buyers - and German buyers in particular - need to have confidence in the product when spending several thousand euros. And with batteries and electronics in particular, people are always sceptical as to whether the previous owner has taken good care of their bike - and not without good reason.
The Upway principle: refurbishing and reselling used e-bikes
And it is precisely this basis of trust that Upway's service builds on. The system is simple: the company buys used e-bikes, tests them meticulously, refurbishes everything apart from the paintwork to such an extent that they can be considered as good as new, and then sells the bikes for significantly less than the corresponding new bike in its own online shop, with a guarantee and advice service in the event of problems. While the average new pedelec costs around 3000 euros, Upway's refurbished bikes are only around 2000 euros, says Toussaint Wattinne. In addition, the experience gained after over 10,000 refurbished bikes is so good that it can be said that the refurbished bikes are as close to the original as possible; by this, the smart Wattine means the new bikes.
When he first saw the 115 metre long hall on the outskirts of Berlin empty, he admits that he was a little nervous. In the meantime, the employees here have set up a kind of cycle of (eternal) e-bike life in order to minimise the need to move the mass of bikes. Here, they are moved from one end of the area to the other and back again, from the incoming goods inspection to packaging on their way to the buyer.
Where do the used bikes come from?
But where does Upway get the bikes from? In addition to buying directly from private individuals via a web portal, Operations Manager (OM) Florian Groß explains that the company buys display items and returns from dealers, leased bikes that are no longer used and so-called "new old stock" bikes. These are the individual items that are left over at the end of the season and which dealers and manufacturers part with at favourable prices. The trade-in of old pedelecs when buying a new one is also very popular. If the bike dealer is an Upway partner, the purchase prices are offset against each other. This keeps the market moving, because people are naturally more likely to buy a new bike if they can get rid of their old one easily.
The pricing for both buying and selling is a bit like the prices on the stock exchange, Wattinne and Groß explain. In principle, they buy all models and brands, unless their technology has repeatedly proven unreliable, such as the VanMoof wheels recently. The price offered for used bikes rises or falls depending on the mileage, the general condition and the desirability of a model. In the shop, the starting price is calculated in a similar way to the learning algorithms. However, if a bike has been online for too long, the price is adjusted downwards.
The Upway boss calls this the "balance between supply and demand" or, in German, the principle of supply and demand. You learn from the market: not only what is popular overall, but also the regional differences and what the individual nationalities attach particular importance to. The Germans, Wattinne says with a hint of a smile, are very focussed on details, very well informed, have much more trust in well-known, big brands and place particular value on the good condition of the bike.
Upway in figures
Upway's figures for its third financial year are already impressive. And there is little standing in the way of further growth: the company is currently active in five countries.
- Foundation: 2021
- Company headquarters: Paris and Berlin
- Employees: 120 in total, of which 23 in Berlin
- Surface area: 7500 square metres in total, including 3000 square metres in Berlin
How the Upway process works
Once someone has sold their bike to Upway, all they have to do is get it ready for dispatch: no cardboard box, just prepare it "narrowly" and wrap it well. Collection, initial inspection and transfer are extremely fast, a week is already a long time. Then the eight mechanics per shift get to work. The 20-point to-do list includes such mundane things as assigning a register code and recording the technical data, including reading out the history of the drive and the essential battery check.
Each of the 30 to 40 bikes that arrive in Berlin every day is subject to triage, with a colour code ranging from almost new to in need of major repairs. A mechanic sometimes spends a day and a half working on these hard cases instead of a few hours on a bike in top condition. The company's principle is to replace as few parts as possible in an environmentally friendly manner, while at the same time providing the customer with a product they can rely on.
Special feature battery
Brakes, chains and sprockets need new parts when they are about a third worn, tyres even earlier, and in any case when the casing looks brittle. Grips and pedals are also often due for replacement, explains head mechanic Dario. Sticky surfaces with old rubber are not to be expected of anyone who wants to buy an Upway bike. The batteries go through a very special process: you can't see the ageing process on them, nor whether they have been deeply discharged or recharged from 90 per cent to 100 per cent, and if so, how often, as this kills the battery in the long run, says the chief mechanic.
Monitored by software, all batteries are topped up once and then discharged in a kind of consumption simulation. If the battery only has 80 per cent of its original endurance, it is refurbished by a partner company or replaced with a new one. According to Dario, however, the drive and battery are very rarely damaged in this way. Only one battery in a hundred can no longer be saved.
The final steps of the Upway e-bikes
When the bikes are moved on from the mechanics' area, you can hardly tell they've been around. Here and there are small scratches on the paintwork, and there is still a light film of oil and dust around the bottom bracket and hubs. For now! Because now it's off to the beauty tent for the refreshed bikes. Tent because they are now blasted with dry ice at minus 78 degrees Celsius. This is the most gentle, thorough and environmentally friendly method of removing any patina without water penetrating the bearings or endangering the paintwork and anodising, and without the need for an oil separator or water.
After this "dry wash", nothing really reminds me of its former existence. Even the parts that haven't been replaced flash like they're fresh from the showroom. And that's where we go straight away. With around 1800 to 2000 models in the online shop, it is worthwhile for Upway to have its own photo studio. And the logistics are sensational here too: professional photos are taken from all angles in just a few minutes, text is added using the manufacturer's collected specification lists and text modules from previous sales - and soon artificial intelligence too - plus a few words about the respective condition, and the bike is ready for sale. The price is set by the algorithm. On average, a bike is on the market for four to six weeks before it is sold again.
Upway to grow
For us as spectators, it is unbelievable that this speed in the circulation of so many brands, models and variants does not end in total chaos. And the hustle and bustle is set to grow! The second workshop branch in Berlin has already been planned for growth, and not all the mechanic positions were occupied when we visited. As the floor space of the hall has already been pretty much utilised, it is set to grow upwards: a second floor is being planned, and a third branch in the strong Benelux countries and a fourth in southern Germany are also conceivable sooner rather than later.
The company also sees itself well positioned with leasing companies and as a supplier of job bikes with its current portfolio. If you consider that the upswing in e-bikes began six to eight years ago, the big belly of the hype has not yet reached the used bike market, so Upway's crisp growth forecasts could still be topped. And the bike manufacturers shouldn't have anything against this trade either. One or two customers will certainly order from Upway with savings of 30 to 50 per cent, but all the more bikers will surely decide to buy a new bike earlier if they can hand in their bike so easily at fair conditions.
Helpful and healthy for the market
The system should therefore ensure even more circulation and growth instead of slowing down trade. His "online shop with additional services", as Toussaint Wattinne Upway describes it after some thought, is "helpful and healthful for the market". Wattinne does indeed seem to take the help for the bike market and its importance for the climate targets seriously. Not only does extending the life of an e-bike protect the environment, but almost every step of the production process is geared towards sustainability, material cycles and the avoidance of chemicals.
With all this enthusiasm and impressive pioneering spirit, we only have one question to ask ourselves at the end: Why does the CEO of Upway regularly steal his wife's pedelec instead of using his own? Despite referring to his pool of biobikes, the charming Frenchman was unable to provide an answer; he probably just hasn't found the time to buy his own bike in between his thousands of bike purchases.
