eBee Africa, the Kenyan mobility startup that after promised to place a million electrical bicycles on African roads by 2030, laid off most of its roughly 50 workers throughout all departments in early 2025 and scaled again operations after struggling to drive gross sales, in line with 5 folks aware of the corporate.
eBee advised workers in a February redundancy discover seen by TechCabal that it might reduce jobs throughout all departments, citing a “substantial decline in income, extraordinarily excessive value of operations, an unsustainable worker wage invoice, and restructuring of the enterprise to undertake a leaner, extra environment friendly construction.“
About 10 workers survived the cuts however ultimately left on their very own, with the final batch of workers departing in July, sources stated.
“We perceive that this information is troublesome, and we share within the unhappiness of getting to take these steps. Please know that we’re doing all the things we will to attenuate the affect of those layoffs, and that the choice is pushed solely by the necessity to guarantee the corporate’s sustainability within the face of the present financial local weather,” the discover learn.
The layoffs mirror broader challenges going through Kenya’s e-mobility sector, the place riders are choosing cheaper electrical motorbikes over eBee’s bicycles, whose flagship eBX mannequin prices KES 99,999 ($774) or about KES 9,500 ($74) a month to hire—pricing that many goal clients, like supply riders, wrestle to afford. Even with financing choices, eBee’s bikes couldn’t compete with the cheaper second-hand motorbikes dominating the market.
In an emailed response to TechCabal, eBee stated it “stays operational and centered on serving clients and companions” however declined to touch upon the precise variety of affected workers. Affected workers acquired exit packages, though eBee didn’t give specifics of that monetary association.
Based in 2021 by Sten Van Der Ham, Jaap Maljers, Isidoor Maljers, and Joost Boeles, eBee manufactures and rents electrical bicycles and in addition operates supply fleets for platforms together with Jumia, Glovo, and Bolt. By mid-2024, eBee had expanded operations to Uganda and Rwanda by partnerships with the Metropolis of Kigali and Jumia.
“The corporate will not be doing nicely, and the uptake of their bikes has been slower than projected,” stated one particular person aware about eBee’s operations, who requested anonymity to talk freely. The supply stated that the enterprise has struggled with gross sales on account of low demand for its electrical bicycles.
The corporate acknowledged that 2025 started with a “renewed technique to strengthen industrial traction and guarantee sustainable development,” which concerned streamlining operations and merging choose areas. Nonetheless, it didn’t specify which areas have been merged.
Within the redundancy observe, eBee stated the choice sought to safeguard the corporate’s long-term stability and defend the vast majority of jobs. It additionally promised consultations with departments and clear communication with affected workers.
“We have now been impacted by broader financial circumstances and the tempo of adoption of electrical mobility in Kenya,” eBee stated, sustaining that guarantee and after-sales help will proceed.
eBee has promoted its bikes as two to a few occasions extra inexpensive than petrol motorbikes, with the added benefit of charging on atypical house sockets. Fashions such because the Nyuki cargo bike have been marketed as preferrred for last-mile deliveries. The corporate stated it’s “growing new partnerships that may additional strengthen our providing.”
In March 2025, CEO and co-founder Sten Van Der Ham stepped down after 4 years on the firm. Ham’s exit got here a month after eBee misplaced a tax dispute with the Kenya Income Authority (KRA) over the classification of imported electrical bicycles.
Mark your calendars! Moonshot by TechCabal is again in Lagos on October 15–16! Be a part of Africa’s high founders, creatives & tech leaders for two days of keynotes, mixers & future-forward concepts. Early chook tickets now 20% off—don’t snooze! moonshot.techcabal.com
Elevate your perspective with NextTech Information, the place innovation meets perception.
Uncover the newest breakthroughs, get unique updates, and join with a world community of future-focused thinkers.
Unlock tomorrow’s tendencies at this time: learn extra, subscribe to our publication, and grow to be a part of the NextTech neighborhood at NextTech-news.com
