Dutech expands green mobility portfolio with ONO

When Rolf Hellenbrand (57) looks out of his home office in Düsseldorf at the cul-de-sac's turning area, he sees inefficiency in action. During peak hours, delivery vans from various parcel services arrive and depart almost every five minutes, often blocking each other, he explains. Drivers hop out, load hand trucks with packages, and haul them to rear entrances of the houses. Sometimes, they even have to make two trips.

If it were up to Hellenbrand, the "last-mile" deliveries would no longer be handled by vans or 3.5-ton trucks but by electric heavy-duty bikes. With the help of innovative city logisticians, deliveries for one household could also be bundled and brought to the doorstep in one go within a specified time frame—faster, emission-free, and more cost-effective. "That's the future."

Weekly Bike Manufacturer Acquisitions

Hellenbrand has reasons to be optimistic. He is the European head of Tri Star Group , a spin-off of Dutech Holdings based in Singapore. Recently, he acquired the Berlin-based e-cargo bike manufacturer ONOMOTION (ONO) out of insolvency. Through an asset deal, the employees, inventory, vehicles, and brands of the start-up have been transferred to Emoving GmbH (Rheda-Wiedenbrück), a subsidiary of Dutech Holdings.

Dutech is no stranger to the German bicycle market. In March 2023, the investor took over the insolvent Prophete Group, along with its subsidiary Cycle Union, including brands like Kreidler, Rabeneick, vsf Fahrradmanufaktur, and e-Bike Manufaktur. Dutech operates a "Green Mobility" segment featuring these bicycle manufacturers and public transport-related services, such as krauth technology GmbH (bike parking facilities) and Metric Group Ltd . Additionally, the "Security" segment includes German safe manufacturer Format GmbH . The group was listed on the Singapore stock exchange until 2021, when CEO Johnny Liu privatized it through his investment firm TSI Metals HK, based in Hong Kong. Today, Dutech focuses heavily on Europe, employing 1,200 of its 3,000 global employees on the continent. Europe is also the largest market, accounting for over €500 million in revenue this year, says Hellenbrand.

Why Enter the Struggling Bicycle Market Now?

The market offers plenty of opportunities for affordable entry points. In 2024, many market players declared insolvency, including the German e-bike manufacturer Advanced Bikes , Dutch competitor Stella Fietsen , and Austria's second-largest manufacturer Simplon Fahrrad GmbH . Investors have stepped in for Stella and Simplon, but the scope of operations remains uncertain. At Stella, for instance, many of the 440 employees fear for their jobs.

Hellenbrand is well aware of the drama in Europe's bicycle market. Almost weekly, external consultants offer Dutech a European manufacturer for purchase. Currently, the company is exploring several acquisitions in the mobility sector, particularly in Germany, but it has not disclosed details.

“We don't buy a bike manufacturer just because it's cheap.”

Dutech does not want to be seen as a corporate raider picking up distressed assets from a struggling industry. "The acquisitions must sensibly complement our sustainable mobility portfolio," Hellenbrand emphasizes.

Expanding the Portfolio

What's missing from their portfolio? "We don't yet have a four-wheeled light electric vehicle. If an opportunity arises—why not?" Hellenbrand says with a shrug, without providing specifics.

In his vision, Onomotion's heavy-duty bikes, upgraded with innovative software, could have a fixed role in mixed electric delivery fleets for logistics providers, major drugstore chains, or supermarkets. The business model also includes offering cities, municipalities, and real estate companies comprehensive e-bike fleets, bike parking facilities, and bike-sharing systems.

Challenges in Implementation

However, many municipalities are far from adopting modern transportation concepts that tightly integrate public transport and e-mobility. Hellenbrand acknowledges the significant educational efforts still needed. Reorganizing insolvent bicycle companies to be profitable in anticipation of better times requires a mix of optimism and patience — qualities Dutech appears to have.

The Prophete Group, two years post-insolvency, is still in the red and working to reduce excess inventory. "We knew this crisis would last longer," says Hellenbrand. Dutech, as a "long-term, strategic investor," can afford this perspective.

The market will consolidate further, Hellenbrand believes, but after that, he expects "normal growth rates of 8% annually." This optimism contrasts with the Cologne-based Institute for Trade Research, which recently forecasted a mere 4% annual growth for the German bicycle industry through 2028. Despite this, Prophete | Keep Moving ?? is planning its next model lines, new sales channels, and services such as at-home e-bike inspections.

Onomotion's Role

ONOMOTION (ONO) has deployed "a few hundred" of its e-cargo bikes since starting production in 2020. Logistics providers like DPD Deutschland , Hermes Germany GmbH , and 美国联合包裹服务 have tested dozens of Onomotion vehicles alongside e-vans in last-mile delivery pilot projects. In these scenarios, mixed fleets with intelligent software integration have performed "successfully," Hellenbrand assures.

Dutech had established a development partnership with ONOMOTION (ONO) motion a few months before the acquisition. A new model, focusing on better price-performance ratios, is set to launch in 2025. Variants for different needs are also planned: a heavy-duty bike with interchangeable containers for logistics providers requiring rapid reloading and a version tailored for southern climates with less weather protection.

Scaling Up Production

Currently, ONOMOTION (ONO) n assembles its bikes in a workshop-like setting in Berlin-Mitte. However, higher production volumes and industrial-scale manufacturing are now the goal. Hellenbrand does not rule out relocating production if Berlin proves insufficient.

The market for e-cargo bikes remains uncertain. While privately and commercially used cargo bikes are projected to grow by 10% annually, e-heavy-duty bikes face steeper challenges, especially their higher acquisition costs (€13,000 to €20,000 per bike).

Optimism for the Future

Hellenbrand counters such concerns by highlighting efficiency. An e-heavy-duty bike can transport more weight and volume than a conventional delivery van during an eight-hour shift, consuming less than 1% of the energy. A study by the EIT - European Institute of Innovation and Technology suggests that a logistics provider could save €500 million annually by using a mixed fleet of e-cargo bikes (80%) and e-vans (20%) compared to an all-e-van fleet.

However, combustion-engine transporters still dominate last-mile delivery. Comprehensive bans on such vehicles in German cities remain unlikely in the near term. "Two out of ten service providers use e-vans; the rest rely on combustion vehicles," Hellenbrand notes from his cul-de-sac.

Investors and alternative mobility players may have overestimated the speed of the transportation revolution in German cities. Still, Hellenbrand believes it's only a matter of time before Dutech builds and delivers thousands of heavy-duty bikes across Europe annually.

The original article appeared in prestigeous German manager magazin / Harvard Business manager of January 7th, 2025 ? Lutz REICHE under the title "Wie ein asiatischer Investor deutsche Fahrradfirmen zusammenkauft" and its full version with additional material can be found here: https://www.manager-magazin.de/unternehmen/handel/prophete-wie-ein-asiatischer-investor-die-reste-der-deutschen-fahrrad-banche-einsammelt-a-aea7aa72-1e9e-4d2b-bb80-7b9eefeb3a7c