Amsterdam has refused to grant Cargoroo a new license to operate its shared cargoebikerental service in the Dutch capital.
Instead, it has handed over exclusive operating rights to BAQME, an upstart rival from Rotterdam.
The City first announced the decision in January.
However, Cargoroo launched an appeal, which officials rejected last week.
Thestartuphas until the end of this month to remove all its bikes from the streets of the city.
But first, a bit of context.
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A maximum of 375 cargo bikes are permitted per plot a total of 750 across the city.
The Dutch capital is notoriously tough on shared mobility schemes, havingbannedalmost all of them.
Less points if they take longer.
A full list of the requirements can be foundhere.
BAQME, an upstart shared cargo bike providerfrom Rotterdam, also submitted the form.
It scored 80 points more than Cargoroo and ended up winning both available permits.
Fair play?
According to Borensztajn, BAQME filled out the questionnaire in an unrealistic way.
The whole procedure was very strange, said Borensztajn.
When we contacted BAQME for comment, the startup did not address the allegations directly.
It told us to direct further questions to the City.
Whats next for shared cargo bikes in Amsterdam?
This marks its first time operating in the city, following roll-outs in Rotterdam and The Hague.
It said itwill gradually build out its entire fleet to fill its permitted quota.
However,Cargoroo usesUrban Arrow cargo ebikes.
Of the few shared mobility operations permitted in Amsterdam, all of them have at least one direct competitor.
For instance, there are two shared moped companies operating in the city, Check and Go-sharing.
There are over five shared car operators.
In this way, the bikes are no longer considered part of a shared rental scheme.
Its tough being kicked out of your hometown, said Borensztajn.
But its also bad for the market, for competition.
We wouldve actually liked to share the market with BAQME and others, said Borensztajn.
Its good for this industry.
The founder believes Amsterdams approach to shared mobility providers has knock-on effects on startups.
Investors will say this is a totally unreliable market because cities can do anything they want to your service.
Story bySion Geschwindt
Sion is a freelance science and technology reporter, specialising in climate and energy.
