Ali Kazemkhani is the CEO of ENVO which makes velomobiles in Burnaby, B.C., on Dec. 2.Jimmy Jeong/The Globe and Mail
In the past five years, at least three makers of velomobiles have declared bankruptcy, dampening their dreams of revolutionizing sustainable transport with the bicycle-car hybrid.
But Ali Kazemkhani, founder of Burnaby, B.C.-based ENVO Drive Systems, thinks his electric mobility company can succeed where others have failed.
Velomobiles are unique pedal-powered vehicles that have been around for more than 100 years, forming a strong community of racers. But today’s commuter versions are a slight departure from those used in the racing scene.
Ali Kazemkhani, on right, is the CEO of ENVO which makes velomobiles in Burnaby, B.C. In 2023, ENVO acquired Veemo, a velomobile that was created by Vancouver-based company VeloMetro Mobility, after it went bankrupt.Jimmy Jeong/The Globe and Mail
With features such as two to four wheels, an upright seat, cargo space, Bluetooth connectivity, batteries and a roof to protect against wet weather, it can be difficult to discern upon first glance where these vehicles belong in transit. Yet in most jurisdictions, the vehicle is bike-lane friendly, making it a comfortable option for car-less people or people who can’t ride a bike.
However, multiple attempts since 2019 by makers in the U.S., Canada and Germany to sell these vehicles have ended in the company filing for insolvency. Mr. Kazemkhani said he chalks this up to, not the concept, but the business plan.
“The product didn’t fail, the business failed,” he said.
In 2023, ENVO acquired Veemo, a velomobile that was created by Vancouver-based company VeloMetro Mobility, after it went bankrupt. Mr. Kazemkhani said ENVO plans to use its bootstrap method of relying upon internal resources and revenue to carry on development of the Veemo, delivering it to customers with deposits who were left hanging after the bankruptcy.
Velomobiles are unique pedal-powered vehicles that have been around for more than 100 years, forming a strong community of racers.Jimmy Jeong/The Globe and Mail
Now, they’re halfway through completing those outstanding orders and using customer feedback to ensure that the Veemo’s relaunch is one that sticks.
Velomobiles are one example in a cacophony of micromobility vehicles, such as electric bikes, unicycles or mopeds, currently being used or developed for mostly urban use.
According to an analysis by McKinsey and Company, micromobility was the third most popular mode of getting around in the world in 2022, after private cars and public transit. In a 2023 analysis, the consulting company stated the micromobility market was worth about US$180-billion, and that that value could more than double by 2030.
In the sea of micromobility options facing consumers, velomobiles stand out as one of the only covered devices available – offering people living in cold or rainy climates a weatherproof alternative.
North Carolina-based entrepreneur Rob Cotter thought of that as one of many selling points when he launched a Kickstarter campaign and founded his own velomobile company, Organic Transit, in 2012. Shortly after, he began selling the vehicles, which he named ELFs, but said he was losing money on every sale owing to the time and labour it took to hand build each one.
With a niche product that doesn’t have the same mass-produced parts as an e-bike has, Mr. Cotter said his team built a lot of the ELFs from scratch. It was also difficult for the ELF to attract attention from major investors, since the market for the product was fairly new, he added.
Eventually, Mr. Cotter said he decided to file for bankruptcy in 2019, after waiting on some money from an investor that never came through. For about four years, Organic Transit was then owned by an oil and gas company, before Mr. Cotter managed to buy it back at the end of 2023.
“This time around we know our lesson, which is to raise enough capital so we can build a significant number of vehicles at a time, so it actually lowers our cost of doing business,” he said.
In a 2023 analysis, the consulting company stated the micromobility market was worth about US$180-billion, and that that value could more than double by 2030.Jimmy Jeong/The Globe and Mail
At ENVO, Mr. Kazemkhani said their approach to staying afloat as a micromobility company involves starting small before dreaming big. Unlike other startups who invested millions into product development before entering the market, ENVO is moving slowly with the Veemo and building a small community of buyers from which his team can gain insights before making more, he said.
Large investments into product development and company growth require a large market to make returns in. But with velomobiles, Mr. Kazemkhani said that market simply doesn’t exist yet, which is why many companies fail.
“You need to build that market organically, and it takes time, and you don’t have patience of five more years. So the investor or the management team pull the plugs and the company dies,” he said.
ENVO has the advantage of already producing other micromobility vehicles, Mr. Kazemkhani added, so it doesn’t cost more to develop new parts.
Of 50 outstanding orders passed on by VeloMetro, ENVO has fulfilled about half of them, with the rest under way. Mr. Kazemkhani said he’s in a Facebook group with the 25 customers who have already received their Veemo, so he can hear stories and feedback about the product.
“These people are going to play a big role in our journey because these are people who use it.”
Preorders for the Veemo are available on ENVO’s website, but Mr. Kazemkhani said the company isn’t launching its public marketing campaign for the product until early next year.
“We don’t want to go all in without making sure that all engineering solutions and customer service solutions are in place.”
The Veemo is currently retailing for around US$6,000 – significantly less than the average racing velomobile, which can cost upward of US$12,000.
Sandra Phillips, chief executive officer of car-sharing company Modo, worked with VeloMetro as a consultant when they were piloting the Veemo. She said the vehicle fills an accessibility gap in the micromobility market for people who can’t use a traditional bicycle. However, she predicts velomobiles will remain a niche product because they’re difficult to place within cities’ transportation systems.
“We don’t quite know what to make of it. Is it a bike? Is it a little car?” she said.
Meghan Winters, a professor of health sciences at Simon Fraser University, said she thinks velomobiles are a fun and attractive option, but they don’t solve the broader transportation solution that’s needed right now. Instead, she said people need more frequent and reliable transit, and places to store their bicycles at work, for example.
However, she said she’s optimistic that the growth of electric urban mobility, which includes velomobiles, will contribute to a decline in private motor vehicles in the future.
“I don’t think there’s any other way we’ll survive. There’s just simply not space for us to continue to have large vehicles on our streets,” she said.