The so-called servitization of the economy is advancing and it seems that it will consolidate among consumers in the post-pandemic environment. The greater degree of uncertainty makes people think twice before acquiring a durable good and for this reason, businesses such as Kleta Mobility, a bicycle subscription or monthly fee payment service, are now gaining momentum and envision a strong growth rate in the coming months.
Kleta also benefits from the advance of digital transformation and the fact that citizens have become accustomed to having everything at hand through a mobile application. They are also helped by the determined commitment of the Barcelona City Council to promote bicycle travel and the increase in general awareness regarding sustainability.
This emerging company is also a good example of two young foreigners who decided to live and put down roots in Barcelona, a city where they have now also wanted to undertake, despite the pandemic, and become another actor in its startup ecosystem. Falk Siegel, born in Germany, and the Argentine Diego Casabe ---who came to Barcelona to do an MBA at Esade--- met when they worked at Badi, the room rental company founded by Carlos Pierre. They left this job to create Kleta, a company that has defied the coronavirus crisis, as it began operating in July 2020.
Now, they already have 400 active users and their forecasts imply quadrupling this figure this year, reaching 1,500 or 2,000 users, according to Falk Siegel, CEO of the startup. "We detect that there is strong demand, people want to switch to bicycles, make them their main method of transport," explains Siegel. According to the entrepreneur, Kleta facilitates this decision, since with their service the user can have a bicycle for exclusive use and forget about everything else in exchange for paying a monthly fee.
"Subscription services are registering strong growth, as they avoid having to buy and commit forever to the same product," he argues. "Today, in the context we live in, everything changes very quickly, it's better not to buy and opt for subscriptions and rentals; we believe we have strong growth potential," he adds.
Kleta offers the possibility of renting a bicycle, fully customizable, for 19.50 euros per month, with no entry fees and no deposit. If an electric bike (e-Kleta) is preferred, the monthly amount is 44.5 euros. One of their commercial claims explains that Kleta bicycles "can sleep on the street" and do not need to be stored inside homes, as they have a high-security lock and anti-theft insurance. The subscription price also includes maintenance, with the advantage that the bicycle does not have to be taken to the company's workshop, as they have mechanics who travel to fix it wherever it is parked. Everything works through the mobile app.
Recently, the Dutch company Swapfiet has also landed in Barcelona, offering the same business model and already operating in the Netherlands, Germany, Belgium, Denmark, France, Italy, and the United Kingdom. Kleta assures that they were born in Barcelona with a proposal very much designed for the Barcelona lifestyle and that they are several months ahead. In any case, the emergence of competition is the best indicator that the market is now ready to contract this type of service.
The founders of Kleta do not want to specify the amount they have invested in the launch of the company, which has raised resources from friends, business angels, and small investment funds.
To accelerate its growth, one of Kleta's strategies is to reach agreements with companies to offer their bicycles to their employees as an additional labor benefit. Lidl and Badi are two companies that have joined this modality, which allows them to incentivize healthy commutes for their staff and reinforce their commitment to sustainability.
Kleta has also signed a commercial agreement with RACC, which offers its subscription model through RACC Hola Bici, a division aimed at promoting urban bicycle culture. On the Hola Bici portal, users can contract insurance and assistance services for bicycles, acquire electric models, and also opt for monthly rental. If this last modality is chosen, the user is redirected to the Kleta platform.