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So they can take racks and a normal groupset and so on.
Bike Fridays (pictured), birdies and Airnimals mange this whilst being foldable.
Mini velos are a solution looking for a problem
Howard-
In addition the theory is that they're either less flexy or lighter due to the more traditional frame shape (i.e. triangles). But of course you sacrifice the ability to fold it.
Edit: to be clear I have no interest in minivelos, just regurgitating information. Folders could well be better in every way - I wouldn't know
frankenbike
They're small:
but closer to a normal bike than a folder. So they can take racks and a normal groupset and so on.