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The S3 was the real problem.

VanMoof released the VanMoof S3 in 2020, which was €2000 (the predecessor was close to €3000). The S3 sold very well because of its low price and great design, but its build quality was really subpar. In fact, insiders say around 10% of all S3 bikes had defects that required repairs (note that 1 - 2% is standard for a typical bike model).

So in the end, VanMoof sold many cheap bikes which was great for their market share but not so great for their margins. Then, on top of this, they had to repair many of the bikes they sold which ate into their margins even more. Lastly, because of supply chain issues, they weren't able to offset the repair cost by fixing the S3 issues and quickly selling many proper units to new customers.