What happened to SpeedX? (CyclingTips)

[fiamme red]

Very interesting article: https://cyclingtips.com/2019/06/what-happened-to-speedx/.

This story starts – as any good story does – with a Lamborghini hanging off a bike frame suspended from a crane.

Or maybe it starts a little before that, with the record-breaking Kickstarter campaign that created that bike. Or maybe, a year later, with the bikeshare scheme bankrolled by the money from the Kickstarter.

But there’s definitely a place this story ends: 800,000 bikes abandoned in fields and construction sites around China.

The tale of the Chinese start-up SpeedX is one of rapid growth, dizzying expansion and total collapse. In the space of two wild years, the company blossomed from the seed of an idea to hogging headlines around the cycling and tech world. It was poised to disrupt the big brands with its competitively priced and highly integrated ‘smart’ road bikes. And then, seemingly overnight, on the eve of shipping its ambitious second model, SpeedX disappeared without a trace – leaving in its wake a trail of unfulfilled Kickstarter pledges, unpaid suppliers, and unreturned deposits...

[Pelican]

Surprised this isn't getting more comments. Did anyone here back the SpeedX Kickstarter?

[MattTuck]

China is a poster child for mal-investment and over capacity. So, this doesn't surprise me much.


Edit: Oh, even better, after reading the whole article. This is definitely worth a read.

[cal_len1]

This was a really well done article. This makes me realize how unsustainable the startup culture is. On another note, I have to wonder whether all the scrapped bikes could go to Africa or other poor countries.

[93KgBike]

Surprised this isn't getting more comments. Did anyone here back the SpeedX Kickstarter?

Did they use tubular tires?

[charliedid]

Never heard of it.

[bcroslin]

The video of the bike share graveyard (https://www.youtube.com/watch?v=nAAOylsRONQ) is stunning. The sheer size is overwhelming.

[MattTuck]

This was a really well done article. This makes me realize how unsustainable the startup culture is. On another note, I have to wonder whether all the scrapped bikes could go to Africa or other poor countries.

This may be a bit of thread drift, but I think it is relevant. Fundamentally, capitalism is about offering the consumer a product or service that the consumer values enough, relative to his/her other options, that they willingly exchange their money for that good or service.

Much of the start-up culture from silicon valley (and apparently China) is based on a concept called network effects, or network externalities. The concept here is that companies with large networks (ie. first movers able to achieve scale) can reap massive rewards because of these network effects.

From that article, it seems clear that this thinking is pervasive.
The world of Chinese start-ups is high-stakes, costly, cut-throat, gladiatorial. As one Bluegogo employee explained it, “competition in China is really risky. If you’re not going to be #1 or #2, you’re just going to die.”

Really, in a country of more than 1.25 BILLION people, there is only room to operate 2 profitable firms in a given industry?

I'm not sure what economic theory guides China -- some form of quasi-statist capitalism, perhaps -- not sure that we really have a name for it. But, whatever it is, it seems to have become part of the zeitgeist of getting rich quickly there.

I am convinced that future scholars (if they haven't already), will arrive at the conclusion that large scale network effects are just another iteration of monopolistic anti-competitive business tactics.

Firms, and I direct this to all firms, not just those in the cycling or start-up culture, need to get back to basics and refocus on offering their customers a "better mouse trap" -- as the saying goes.

[Pelican]

Really, in a country of more than 1.25 BILLION people, there is only room to operate 2 profitable firms in a given industry?

I'm not sure what economic theory guides China -- some form of quasi-statist capitalism, perhaps -- not sure that we really have a name for it. But, whatever it is, it seems to have become part of the zeitgeist of getting rich quickly there.


It's called capitalism. The idea of being #1 or #2 is at the core of every Silicon Valley startup. Do you still use MySpace or Friendster? What phone do you own?

The Chinese startups just do it bigger. More money, in shorter time frames mean more spectacular failures.

[roguedog]

Ah. I just finished reading that article and was thinking of sharing. Interesting read.. and really, one of the better written articles I've read in a long time. More like real journalism with its depth.

I agree on the waste and agree w/ cal. Seems like these bikes could be employed in a 2nd life somewhere for people who could use them.

[jfranci3]

The only thing I remember about the company was the ad that made it look as though the Speedx would be the first bike someone would fall off forward rather than to the side. I couldn't find the facebook ad pic, but somehow the seat was higher and the bars were lower in that ad.
http://shutuplegs.org/wp-content/uploads/2016/10/box1-bike-small.png

I also recall the integrated speedx-specific computer being the dumbest idea possible.

[bcroslin]

Ah. I just finished reading that article and was thinking of sharing. Interesting read.. and really, one of the better written articles I've read in a long time. More like real journalism with its depth.

I agree on the waste and agree w/ cal. Seems like these bikes could be employed in a 2nd life somewhere for people who could use them.

I've been meaning to pony up the $99/ year for Cyclingtips "veloclub" membership and after reading the piece I plunked my money down. Feels good to support journalism that doesn't make me feel like I need therapy when I'm done reading.

[cmg]

great article. the goal isn't to produce a usable desirable product but to produce investment capitol and when it fails it's on to the next......

[unterhausen]

I also recall the integrated speedx-specific computer being the dumbest idea possible.
this was pretty obvious back then. We're always going through computers, and this thing had no revenue stream to keep development going. It was always going to be trash before the bike was