Interview with CEO on nextbike’s Journey: Expansion, TIER-nextbike Merger, and Return to Independence

The Origins of nextbike

Lars: Could you start by telling us the story of how Nextbike began?

Sebastian: nextbike was founded more than 20 years ago in Leipzig. We started with just 60 bikes in Leipzig and nearby Dresden. The idea was to make bike-sharing as easy as possible. At first, users would call a hotline, enter a five-digit bike number, and receive a four-digit lock code. After their trip, they were supposed to change the lock code and report the new one to us, but that part never really worked. 

The problem was: the customer couldn’t understand the instructions despite them being on the bike. So our founder Ralf frequently had to roam around Dresden and Leipzig (the first nextbike cities) with a hammer and crowbar in his backpack, to break the locks since there was no service team yet. 

But we quickly adapted. Our service teams started changing lock codes directly in the field and updating our backend system. That was our first system, a small, private B2C model, with no public funding.

In the late 2000s, more cities wanted to connect public transport with bike-sharing. Around 2010–2011, we began applying for public funding and became part of the public sector. The biggest milestone for us was Cologne in 2015, where we integrated bike-sharing directly into public transport. Since then, transit has been part of nextbike’s DNA.

Integrating Bike-Share with Public Transport

Lars: What did that integration look like in practice?

Sebastian: In Cologne, we connected our system to the public transport card. Public transport users could tap their card at a bike and get 30 minutes of free use. That deep integration made a big impact. Today, bike share is often app-based, but the principle remains, we see ourselves as part of the public transport system. Combining trams, buses, and bikes creates real value, especially in areas that aren’t well covered by traditional transit.

Nextbike’s Market Presence

Lars: You’re very strong in Central and Eastern Europe. How broad is your current footprint?

Sebastian: Right now, we’re in 23 countries and more than 400 cities, from very small towns of around 300 inhabitants to major cities like Berlin and Glasgow. One of our strengths is scalability. We can operate large urban systems or regional networks, as we do in Poland’s GZM region, where many municipalities participate in one shared system.

We’re the European market leader in bike-sharing, and we plan to expand further, particularly in France, Belgium, Spain, and the Nordics. Our strongest markets today are Germany, Austria, Poland, Spain, and the Czech Republic.

Nextbike’s Performance Across Cities

Lars: Which cities are performing best in your portfolio?

Sebastian: In terms of trips, Cologne, Dresden, and GZM in Poland are performing exceptionally well. In our Bizkaia system in Spain, for example, each bike averages nearly 6 rides (5.98) per day, which is remarkably high. That said, success always depends on context: funding models, user behavior, and city size all play a major role in the results.

Nextbike’s Growth Ambitions

Lars: Where do you see the biggest growth potential in the coming years?

Sebastian: The Nordics are very interesting to us. We see tenders in Helsinki and Stockholm and expect opportunities in Norway as well. France is another key market; we’ve launched our first projects there and aim to grow. We’ve also entered Portugal and see room for expansion in Spain, where public bike-sharing is gaining strong momentum.

Rising Costs and Technology

Lars: Like many operators, you’ve faced rising costs since the pandemic and the Ukraine war. How has that affected you?

Sebastian: During COVID, it was nearly impossible to source bike parts: long delivery times, high prices, supply chain chaos. The situation is improving now. Operational costs are also expected to decrease over the next few years thanks to better technology. Larger battery capacities reduce service frequency, and charging infrastructure in semi-station-based systems can further cut costs.

The Tier–Nextbike Merger and Demerger

Lars: Can you share some insights into the Tier–Nextbike merger and later separation?

Sebastian: Tier acquired Nextbike to become a full-spectrum micromobility operator and gain access to cities where we had strong relationships. However, our business models were quite different. Nextbike focuses on public partnerships and funding, while Tier operates purely commercially. It was hard to align those two approaches within one company.

There were also cultural differences. Ultimately, Tier decided to sell Nextbike, partly for strategic and financial reasons. Despite the challenges, it was a valuable experience, we learned a lot from our Tier colleagues. Now, with new investors, we can fully focus in one direction, which makes things simpler and clearer.

Bike-Share Public Funding and the Berlin Case

Lars: Many cities are facing tighter budgets. You’ve experienced this in Berlin. What happened there?

Sebastian: In Berlin, the city decided not to retender the public bike-sharing contract. As a result, we had to scale down operations and shift to a more B2C model, focusing on profitable areas. Unfortunately, this left many outer districts without access.

That’s a problem because public transport should serve everyone, especially those who can’t afford private micromobility options like scooters or e-bikes. Affordable public bike-sharing is vital, but without public funding, it’s difficult to maintain.

More broadly, we see two trends. Many cities, in France, Spain, and the Nordics, continue investing because they view bike-sharing as essential to their mobility goals. But in parts of Germany, public funding is decreasing. So the picture is mixed.

Making the Bike-Share Case to Cities

Lars: How do you approach conversations with cities in that environment?

Sebastian: We focus on showing that bike-sharing pays off. It’s an integral part of public transport and offers strong returns on investment. If you look holistically, it improves public health, reduces infrastructure costs, and offers cheaper last-mile solutions compared to new tram or bus lines. In suburban areas, e-bike stations can connect people to the city center at a fraction of the cost. So it’s not just environmentally and socially beneficial, it’s financially smart.

How OOH ads can subsidize Bike-Share

Lars: What do you think about the OOH model when cities struggle with financing. Can that be a way to get the needed funds? 

Sebastian: Yes, the OOH (out-of-home advertising) model is an indispensable way to strengthen the financing of bike-sharing systems – especially given tight municipal budgets, providing a stable revenue stream. At Nextbike, our AdPanels, the advertising spaces on the sides of the rear wheels are a fundamental part of our business model. nextbike.media, our own marketing unit, contributes around 10 percent to total revenue with the AdPanels. 

In 2024 alone, around 20,000 bikes in Germany were equipped with 40,000 occupied advertising spaces in public spaces. However, the success of this model is based on strategic, aesthetically appealing implementation that is closely coordinated with the cities. 

Policy issues Bike-Share is facing

Lars: What political challenges do you face when competing with stationless mobility services?

Sebastian: We don't compete with dockless systems because our modular system is flexible: docked, dockless, or hybrid. We look at each city individually and develop a customized concept that takes into account the local infrastructure, topography, and culture. Anything is possible, so we can tailor solutions to the specific needs of cities and regions.

Cities are faced with the task of creating fair conditions that take into account both the strengths and limitations of station-based and stationless bike-sharing systems. The rule of thumb here is that dock-based services contribute to an orderly cityscape and long-term infrastructure, while flexible models can improve coverage and accessibility. Because we are well aware of the respective advantages and challenges of both approaches, we support cities and municipalities in developing the optimal solution for their specific mobility goals and needs.

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