E-bike startup Whizz wants to transform D.C. food delivery

An e-bike rental company targeting food delivery workers is expanding from NYC to D.C.

Why it matters: Whizz aims to be an affordable alternative to get gas-guzzling mopeds and unsafe bikes off the streets — all while addressing growing safety and regulatory concerns.

How it works: The startup rents e-bikes for around $150 per month and offers rent-to-own programs. In NYC, where Whizz launched in 2022, couriers with partners DoorDash and GrubHub get a 15% discount.

• Whizz has around 250,000 "Brat-green" bikes on the roads and five brick-and-mortar hubs around NYC where customers can rent, repair, and exchange damaged bikes. Services are offered in six languages.
• Fixes and replacements are part of the subscription plan. For the D.C. launch, Whizz will likely partner with existing bike shops in the city and then open their own.

The big picture: The use of e-bikes and mopeds is skyrocketing in major cities due to high demand for food delivery and an influx of immigrants seeking work and quick, cost-effective vehicles.

• But some don't have the means or documentation to purchase them, and instructions to register them, which has led to an increase in illegal scooters.

Friction point: In NYC, Boston, and D.C., illegal mopeds and cheap e-battery fires , some deadly , have resulted in citywide crackdowns and new safety initiatives by companies like DoorDash . D.C. police launched a moped taskforce in June, impounding scooters and issuing tickets.

• Police tell Axios that so far they've impounded 344 motor-driven cycles, arrested 108 people, and issued 357 notices of infractions.

What they're saying: "When a new person is coming to [the U.S.], a delivery job is often the first opportunity," Whizz CEO and co-founder Mike Peregudov tells Axios.

• An entrepreneur from Russia who immigrated shortly before the war in Ukraine , Peregudov says he saw "the pain in this space, but also opportunity." He could relate to language barriers, or not having a credit line to get a bike. "How can we minimize the barrier?"

The intrigue: Whizz recently raised $12 million for a big expansion, according to TechCrunch .

• Whizz uses proprietary software and designs their bikes with food delivery in mind. Peregudov tells Axios that the bikes are built to go far and long, roughly 1,000 miles per month with big batteries that can last a 12-hour workday.
• They're protected against fraud and theft by GPS trackers and remote control. Whizz can lock down bikes, operates a collection team, and can limit the speed of bikes per local road laws.

What's next: Whizz is launching in Philadelphia soon and in D.C. in roughly six months. They're also launching a line of e-mopeds in September that can travel faster and at greater distances for more spread-out urban markets.