Amsterdam suspends cargo bike service Cargoroo due to ‘failed questionnaire’

Amsterdam has denied Cargoroo a new license to share cargo e-bikes in the Dutch capital. Instead, the city handed over exclusive operating rights to BAQME, an up-and-coming competitor from Rotterdam.

The city first announced the decision in January, but Cargoroo filed an appeal, which authorities rejected last week.

Cargoroo’s existing license, which allowed the company to operate a fleet of 110 cargo e-bikes in Amsterdam, expires on June 16. The startup has until the end of this month to remove all of its bikes from the city’s streets.

But first a little context.

Last year, Amsterdam updated its rules for cargo bike sharing schemes. Under the new plan, the capital was divided into two “parcels” – East and West – each of which was granted a permit. A maximum of 375 cargo bikes are allowed per parcel – a total of 750 across the whole city.

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The Dutch capital is known to be very strict about shared mobility programs. forbidden almost all of them. To obtain a permit, potential cargo bike operators had to fill out a comprehensive questionnaire in which they had to demonstrate how their service complied with Amsterdam’s strict requirements.

The questionnaire

The test is based on a points system. Operators get more points if they promise, for example, to remove 90% of broken wheels from the road or repair them on site within 12-24 hours. They get fewer points if they take longer.

Other rules relate to the traceability of the bikes, their distribution in the city and how operators handle user data. A full list of requirements can be found here Here.

“Some of the conditions were a bit unreasonable,” Jaron Borensztajn, co-founder of Cargoroo, tells TNW. “Nevertheless, we filled out the 50-page form, taking care not to overstate our capabilities.”

BAQME, an emerging provider of shared cargo bikes from Rotterdam also submitted the form. It scored 80 points more than Cargoroo and ultimately received both available permits.

Fair play?

According to Borensztajn, BAQME filled out the questionnaire “in an unrealistic manner”.

When Cargoroo presented this to the city, officials told them, “We have to assume that what people say (when filling out the questionnaire) is the truth.”

“The whole process was very strange,” Borensztajn said.

When we asked BAQME for comment, the startup did not directly address the allegations. Instead, it said: “TThe issue of approval is no longer relevant as the appeal was dismissed in court and by an independent appeals committee several months ago.” We were asked to direct further questions to the city.

According to the city of Amsterdam“A careful and transparent approval process was carried out based on the requirements of the additional rules for cargo bike sharing 2023. For the West and East properties, the provider BAQME achieved the most points in the evaluation.”

What’s next for the provision of cargo bikes in Amsterdam?

BAQME has now secured exclusive rights to operate a maximum of 750 shared cargo bikes in Amsterdam over the next two years, with an option to extend. This is the first operation in the city, following rollouts in Rotterdam and The Hague.

Starting next week, BAQME plans to launch in Amsterdam with more than 100 cargo e-bikes from the Dutch brand Dolly Bakfiets. The company said it will gradually expand its entire fleet to meet the permitted quota.

“We are working hard to implement this in a timely manner so that everyone in Amsterdam can enjoy the benefits of shared e-cargo bikes,” said BAQME.

BAQME operates a similar model to Cargoroo, where users use an app to find a bike near them, unlock it and ride it for a fixed price. Cargoroo uses cargo e-bikes from Urban Arrow.

Of the few shared mobility companies registered in Amsterdam, all have at least one direct competitor. For example, there are two companies in the city that offer shared mopeds: Check and Go-sharing. There are over five providers of shared cars.

“Cargo bike riders in Amsterdam now have no choice and are forced to use a type of cargo bike and a service that they may not like,” said Borensztajn.

Cargoroo has now appealed the city’s decision again, but the process could take up to a year.

Instead of removing its cargo bikes from Amsterdam entirely, Cargoroo plans to temporarily rent them out on a subscription basis, similar to the Dutch brand SwapbikesThe bicycles are therefore no longer considered part of a common rental system.

“Bad for the market”

Cargoroo was founded in Amsterdam in 2017 with the aim to replace car journeys with more environmentally friendly and practical cargo bikes.

“It’s hard to be driven out of your hometown,” said Borensztajn. “But it’s also bad for the market, for competition.”

Although the withdrawal of the license was a major blow for the company, it continues to operate in several Dutch cities as well as in Belgium, Germany and France. Most of its customers are parents looking for a quick transport option for their children or students who need to transport furniture.

“We would actually have liked to share the market with BAQME and others,” said Borensztajn. “It’s good for the industry.”

The founder believes that Amsterdam’s approach to shared mobility providers has knock-on effects on start-ups. “Investors will say: ‘This is a completely unreliable market because cities can do whatever they want with their services.'”