The Spanish marketplace for second-hand bicycles, Tuvalum, aspires to become the e-commerce of European reference in this segment of electronic commerce and double this year the turnover of 2021, which managed to close with 8 million euros.
To achieve this, the startup has launched a particular ‘Plan Renove’ in local stores throughout the country that allows any pedal sports fan to purchase a new bicycle at their local reference store, delivering theirs as part of the payment.
This initiative was born in 2015 from the initiative of two young Spanish entrepreneurs, Ismael Labrador and Alejandro Pons, who were looking for online alternatives that would offer them security when purchasing second-hand bicycles. “We decided to transfer business models that were already working in the industry to the bicycle sector to eliminate any uncertainty for the online buyer,” says Alejandro Pons, CEO and founder of Tuvalum.
Its operation consists of charging 50 euros + VAT for each sale made by the seller through the ads published on its platform, while the buyer is charged a commission based on the price of the bicycle, never exceeding 250 euros. In recent months they have also been opened to direct purchase and sale to individuals or businesses after reconditioning them.
Their business model transfers to the bicycle market the same concept that triumphs in the second-hand car market, they explain, allowing local businesses to enter the 100% digital business and access additional customers without incurring additional costs and risks . since it is Tuvalum that acquires the bicycle delivered by the private seller, which will be checked by its professional mechanics before putting it up for sale on its platform.
“Our vision,” says Pons, “is to continue building the next digital ecosystem for the bicycle industry. On the one hand, we are able to help local stores sell new and second-hand bicycles online , without the need for invest in their own e-commerce platform , logistics or digital marketing team.
On the other hand, we help brands sell more new bikes,since we inject liquidity into the market with the second hand, because the first thing that someone who buys a new bicycle does is sell theirs, with prices around a thousand euros on average. We want to be a kind of Amazon for bicycles at a European level. For this reason, we have agreements with the brands to keep the second-hand one when their client acquires the new one, solving their need at the same time and place”.
From the firm they emphasize that its main value is to provide guarantee and security: “the seller does not have to meet with a stranger, nor manage the payment or the shipment, and we also contribute to the buyer when purchasing a second-hand product a certification of quality and reconditioning carried out by mechanical experts who assure them online that what they are going to receive is what they are buying, and with money-back guarantees”.
The founders of the company are very clear that, in a horizon of ten years, urban mobility in the main European cities will have dispensed with cars, and they plan to continue increasing their presence on the continent beyond the 11 countries where they already concentrate 35% of your sales. “Our five-year plan is to be leaders at the European level in terms of business volume, brand recognition, presence in countries and that our bike shops also sell through Tuvalum.”