The appeal is that thieves need to do the same thing. Which limits the value of the bike for them because it makes it easy to track them down. It's part of the theft protection. Which, if you've ever had your bike stolen is a big selling point for these bikes. Theft is a reason why I've never bothered with premium bikes. Because you can't take them anywhere and expect them to not get stolen. Van Moof changed that. They can be stolen of course but it's a lot of hassle and bike thieves learned pretty quickly that there's very little point in doing so as they'll go through a lot of trouble to track down the bike. Which means it's risky.
Van Moof actually had an insurance policy that you could buy that included a guarantee to either track down your stolen bike or replace it. The so-called bike hunters would attempt to track down the bike. And stealing one involves dealing with a very loud and obnoxious alarm that is motion triggered that can only be disabled by unlocking the bike.
Those were all good things. What's not good is all the proprietary components, the poor quality of those, and the over dependence on the Van Moof servicing. That's what's killing the company. Basically classic VC funded company problem: great idea and product but hopeless execution resulting in a company that has a lot of cost but no profits making that problem worse through rapid growth and inflated investor expectations. The debt bubble burst last year, they are running out of cash now, and game over pretty much.
I actually have a lease bike from a company called Swapfiets here in Berlin. Very nice deal. I pay them per month and the bike is basically ignored by bike thieves and vandals. There are hundreds of thousands of these bikes across Europe. Each bringing in revenue through a subscription. Genius idea.
The bike is decent but nothing special. What they sell is peace of mind. I get to ride a decent bike and not worry about it getting stolen. Very low tech solution; the bikes are just very recognizable which means selling them is not a thing for thieves. If it gets stolen and I can show the key, my risk is 60 euros. I've had one for three years now and I park it all over town in all the hot spots where bikes get stolen, vandalized, etc. without a second thought. Not a single incident.