Running a subscription business for physical products and making it profitable is no small feat but Bike Club shows it’s possible to scale, grow fast, and build a circular model that keeps customers for years.

Bike Club took the simple headache every parent knows (kids outgrow bikes fast), turned it into a flexible monthly subscription, and scaled it from the UK into Germany.

Founded in 2016 in the UK, Bike Club offers families a flexible subscription: parents pay a small monthly fee, and their child always has a bike that fits. When the child grows, they simply swap for the next size up. Behind this simple promise is a sophisticated operation — and a compelling example of how a product-as-a-service (PaaS) business can scale across borders.

After success in UK, Bike Club expanded to Germany with circuly powering their subscription infrastructure and operations.

In this case study, we break down some of the most critical topics around Bike Club’s business — with a special focus on their expansion into Germany.

We also sat down with Franz Nieber, Head of Digital Operations at Bike Club Germany, to dive deeper into their local operational strategy. If you're interested in the full case study, sign up for the waitlist to get access to the full case study when it is live here.

Why Germany as the next destination

Bike Club quickly became the largest kids’ bike subscription service in the UK. After proving out the model and building a fleet of thousands of bikes, the team set its sights on Europe. In 2022, Germany became their first continental launch because of:

• Strong cycling culture
• Sustainability mindset
• Large family market

Rather than rushing in, Bike Club approached Germany thoughtfully:

• Started small (small team and wharehouse)
• Build local logistics and refurbishment operations
• Tailoried the customer experience to German expectations.

The result? Within months, they were seeing rapid adoption, with thousands of German families joining the service.

1 in 5 kids bikes in Germany are provided by Bike Club. - James Symes | CEO & Founder @ Bike Club

Here another ground-level glimpse:  a comment from one of our own team members on LinkedIn — sharing how often Bike Club comes up locally, simply through everyday parent conversations.

The three pillars that make Bike Club’s model work

Bike Club’s business model is elegantly simple on the surface: families subscribe to a bike, then swap it for a larger one as their child grows. But underneath are three strategic pillars that keep the model sustainable and scalable:

1. Seamless swaps & upgrades

At the heart of Bike Club’s offering is the ability to exchange bikes as children grow. This isn’t a nice-to-have — it’s the core promise. Bike Club built logistics and scheduling systems so that when it’s time to size up, the new bike arrives and the old one is collected in a single doorstep visit. For parents, there’s minimal downtime and zero hassle.

2. Efficient refurbishment & reuse

Every returned bike goes through a rigorous refurbishment process. Mechanics inspect, repair, replace worn parts, and professionally clean each bike, readying it for the next family. This means each bike can be enjoyed by multiple children over its lifespan — dramatically reducing the cost per use and underpinning the business’s circular sustainability story.

3. Focus on retention

Because kids keep growing, Bike Club is uniquely positioned to serve families for years. Their pricing structure encourages families to stay — with low monthly fees, flexible cancellations, and smart incentives that reward longer-term relationships. By turning bike ownership into an ongoing service, they maximise customer lifetime value and minimise churn.

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Financing growth and the bike fleet

Scaling a physical subscription model takes more than a good idea — it requires capital to build the fleet. Bike Club financed its growth through a mix of venture equity (to fund operations and European expansion) and structured debt (specifically to purchase bikes). By treating bikes as durable, revenue-generating assets, they could leverage debt to grow their inventory without heavy equity dilution.

Each bike isn’t sold once — it generates subscription revenue across multiple cycles, making this a powerful financial engine. It’s the difference between a one-time retail margin and a long-term recurring revenue stream.

Pricing and value proposition

Bike Club’s pricing is designed to be a clear alternative to ownership. Families pay roughly €6–18 per month, depending on bike size. It’s intentionally cheaper over time than repeatedly buying new bikes — plus it includes the flexibility to swap, along with optional insurance for peace of mind.

Small fees apply if families swap sizes very early, helping recover logistics costs. But after a typical period (like 18 months on pedal bikes), upgrades are free, perfectly aligned with how fast most kids grow. This structure nudges parents to stick with the service for multiple growth cycles.

How they localised for Germany

Launching in Germany wasn’t just about translating the website. Bike Club adjusted every operational touchpoint:

• Product selection: They included well-loved German brands like CUBE and Puky alongside international names, building trust.
• Payments: They offered local preferences like SEPA direct debit and PayPal.
• Support & language: Customer service, help centers, and all communications were in German, with local staff who understood family expectations.
• Warehousing & refurbishment: Rather than shipping bikes across borders, they built local facilities to handle refurbishment and delivery — speeding up swaps and reducing costs.

This mix of local execution and shared resources from the UK (like marketing, tech, and development teams) kept the expansion both nimble and efficient.

Tech and operations behind the scenes

Bike Club’s experience feels smooth for parents, but it’s powered by a sophisticated stack:

• Shopify: Running the storefront and customer browsing experience.
• Stripe: Handling recurring payments, cards, and local payment methods.
• circuly: Managing the core subscription logic and all the subscription operations— from sign-ups to swaps, billing to the self-service portal where families schedule upgrades.
• Salesforce & Klaviyo: Powering customer support, email marketing, and business reporting.
• Dedicated refurbishment & warehouse teams: In Germany and the UK, ensuring bikes are rapidly processed and redeployed.

This tech ecosystem lets Bike Club focus on customer delight, not back-end complexity — a powerful lesson for any brand exploring a PaaS model.

What’s missing — and what they chose not to do

Interestingly, Bike Club doesn’t offer in-store test rides. Instead, they rely on home delivery, with a straightforward cancellation window that acts as a de facto trial period. This minimizes overhead and supports their direct-to-door model, but also highlights a conscious tradeoff: lower operational costs over showroom experience. It’s a reminder that in building scalable subscription businesses, focus is key — trying to offer everything to everyone can dilute both brand and margin.

Lessons for brands exploring product-as-a-service

Bike Club shows how a subscription model for physical products can thrive, provided it’s built on:

Asset utilisation: Each bike serves multiple families, dramatically improving return on investment.
Seamless customer experience: From sizing tools to doorstep swaps, it’s all designed to keep parents happy — and paying.
Strategic financing: Mixing equity to fund growth with debt to fund assets keeps expansion capital-efficient.
Robust tech & ops: An integrated stack ensures everything runs smoothly, from billing to bike tracking.

It’s a compelling playbook for any brand considering a shift from one-time sales to recurring revenue. Whether you’re in bikes, appliances, or furniture, the fundamentals hold true: own your operations, maximise asset life, and keep the customer at the heart.

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Conclusion

Bike Club didn’t just rethink how parents get bikes for their kids — they redefined what a circular, subscription-based model can look like for physical products.

By focusing on durable assets, building local refurbishment operations, financing inventory wisely, and running everything on a seamless subscription tech stack, they created a business that scales across countries while staying operationally lean.

For any brand considering a product-as-a-service model — whether it’s in furniture, appliances, or other consumer durables — Bike Club’s journey is packed with lessons on how to structure, finance, and grow a subscription business that keeps customers coming back and assets working for years.

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