October 24, 2021 - Ride Zygg, North America’s first subscription e-bike service that debuted in June 2020 in Toronto, has just appeared on Dragons Den and slayed them all receiving multiple offers.
CEO Kevin McLaughlin, who co-founded car-sharing companies AutoShare and Modo, was all smiles asking $1 million for 15% of his company.
McLaughlin settled on a $1.2 million offer for 15% from Manjit Minhas, a beer baroness from Alberta, but it comes with a $200.000 break fee – meaning that if the deal doesn’t close he pays her $200,000.
According to McLaughlin, Ride Zygg will expand first to Vancouver with plans to be in 25 cities within three years. The company is currently valued at $6.7 million and hopes to see revenues surpass $600,000 this year.
For $69 to $189 a month, Zygg will rent you a pedal-assist electric bicycle with no sharing, no docking, and includes maintenance and repairs – effectively it’s your e-bike. Pricing varies, depending on which of their three e-bike models you select and whether you subscribe for a 12- month contract.
The food delivery service has been Zygg’s biggest customer so far but McLaughlin believes the bigger market for their subscription service lies with consumers. For people who are looking for new ways to get around, Zygg presents a timely new option.
Watch the Dragon’s Den episode here.
Learn more about Ride Zygg here.
