E-Bike Market in Europe

Part
01
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Part
01

Employee e-bike Leasing: Competitors (Part 1)

Movelo is a leading competitor in the employee e-bike leasing market that is based in the EU. Bicycle Transit Systems is a leading competitor in the employee e-bike leasing market that is based in the U.S. Tembici is a leading competitor in the employee e-bike leasing market that is based in Latin/South America.

Three Leading Competitors in the Employee E-Bike Leasing Market

1. Movelo (EU)

2. Bicycle Transit Systems (U.S.)

3. Tembici (Latin/South America)

  • Since Tembici's website is not available in English, we used Google Translate to review it in English. The translated version of the website rendered the same URL for each web page within the site. For that reason, we provided screenshots of the specific information we cited to from the website in this Google Doc (with headers describing the categories of those screenshots included therein).
  • Tembici is a leading competitor in the employee e-bike leasing market and is based in Latin/South America.
  • Tembici is a leading competitor because it's "the leader in bike sharing in Latin America."
  • We didn't find any information about Tembici's revenue (explained in Research Strategy section below).
  • The company offers the following services: E-bike leasing, custom-designed e-bikes for businesses, sales presentations for businesses interested in e-bike leasing for employees, and bike parking services (including stations).
  • Tembici's competitive advantage is its strong brand ethos involving its passion for bicycle transportation, commitment to sustainability, dedication to innovation, and overall belief that bicycles offer tremendous promise for the betterment of transportation and society.

Research Strategy

The only data point we weren't able to find was Tembici's revenue. We looked for that information using three different research approaches. First, we looked for that information in company databases, including Zoom Info, Bloomberg, and Owler. Though the company was listed in Bloomberg, its revenue was not. The company wasn't listed in any other database we found. Second, we looked for articles that might have published that information, in sources such as Smart Cities World and in a 2018 report titled "Brazilian Bicycle Economy." However, none of those articles/reports provided the company's revenue. Third, we looked for any mention of such information on either the company's website or social media channels. However, that approach also didn't yield any such information.

We identified the three leading competitors in the employee e-bike leasing market by conducting wide-ranging searches for listings of companies offering such services in the respective regions. While there are many companies that offer e-bikes, there were far fewer that offer e-bike leasing and even fewer that offer such for employees. The companies we included are ones that offer e-bike leasing for businesses, which is how we determined they offer such for employees. We determined that these companies are leading competitors in their respective markets (EU, U.S., and Latin/South America) by reviewing the information provided on their websites pertaining to their reach and in articles from sources such as Smart Cities World and Global Fleet.
Part
02
of three
Part
02

Employee e-bike Leasing: Market

The demand for e-bike leasing has grown tremendously in the last two years in Europe and the growth is expected to continue, especially because of regulations incentivizing employers to offer e-bikes to their employees.

Demand for e-bike Leasing Among Employers

  • The demand for e-bike leasing in Europe is on the rise and the demand is expected to keep increasing in the coming years.
  • Some employers are even actively providing incentives to their employees to use e-bikes.
  • For example, SNS Reaal, a Dutch financial company, pays its "employees that choose to travel by bicycle €0,23 more per mile than those that travel by car. Employees can choose to pay for the e-bike by stopping the payment of travel expenses until the debt is paid off, lower their bonuses throughout the year, or to provide an interest-free loan."
  • Bosch, a German multinational, introduced a program with incentives to its over 100,000 employees in 2018 encouraging them to lease e-bikes. The company budgeted about 200 million euros for the purpose. Employees can choose between traditional bikes or e-bikes.
  • The government in Netherland introduced a tax incentive to employers that sign up and encourage their employees to use e-bikes and industry experts expect the move to boost employer's demand for e-bikes. The move is expected to boost sales of e-bikes in Netherland to over 550,000 in 2019.
  • The UK government also has a tax incentive under the Cycle to Work scheme for companies that encourage their employees to use e-bikes and analyst believes that this will help boost employers demand for e-bike leasing.
  • In fact, a Greater London company announced that start it will start "paying its employees 40 pence ($0.52) per mile for commuting to work by electric bike. Those on “mechanical” bicycles will get 20 pence per mile."
  • France also introduced a similar regulation that grants tax incentives to employers that encourage their employees to use e-bikes, a move that is also expected to increase the demand for e-bikes by employers in the country.
  • The demand for e-bikes by employers in Belgium has also increased tremendously in the last two years. Corporate leased bikes increased to 40,000 in 2019 despite the fact that almost none existed two years ago. The growth is expected to continue in the coming years.

Who Is In Charge

  • Research suggests that the person in charge of making the decisions on product portfolio selections is generally the person in charge of employee welfare in conjunction with the board of the company.
  • For example in Bosch, Kerstin Mai who is the employee representative and combined works council chairwoman is the lead person in charge in conjunction with other key board members such as "Christopher Kübel, member of the board of management and director of industrial relations at Robert Bosch GmbH."
Part
03
of three
Part
03

Employee e-bike leasing: Benefits & Pain points

Four benefits that employers have from leasing e-bikes to their employees are cost benefits, improved mobility, environmental benefits, and health benefits. Pain points include complicated tax rules and lack of infrastructure. More details are below.

Benefits of Leasing E-Bikes to Employees

Cost Benefits

  • The main benefit employers stand to gain from leasing e-bikes to their employees is the reduction in the company's travel budget. This is because the cost of company e-bikes is much lower than the cost of company cars.
  • In Germany, incidental payroll costs for employers are reduced because the e-bike is considered a non-cash benefit for employees, which reduces their gross income.
  • German employers are able to use company-leased e-bikes to take advantage of the 1% rule, which means that 1% of the bike's value is added to an employee's monthly salary.
  • In addition, in countries like Belgium, companies receive a "corporate tax reduction for all expenses linked to bicycles and cycling infrastructure."

Improved Mobility

  • During rush hour, e-bikes improve the mobility of commuters because they can navigate the streets more easily, which means fewer employees will be late to work.
  • In Germany, for example, there are 20 million commuters, 50% of whom commute less than 10 kilometers to their workplace.

Environmental Benefits

Health Benefits

  • Cycling can help increase creativity as employees "don’t always have [their] best ideas sitting at our desks, but instead while doing things like exercise."
  • Studies have found that an "endurance sport like cycling... has a positive effect on brain activity." The increased oxygen improves cognitive ability and the rhythmic pedaling motion can induce relaxation.
  • Moreover, according to Stephanie Krone, spokesperson of ECF’s German member federation ADFC, "bike commuters take on average two less sick days per year, and they are fitter and more motivated."

Pain Points of Leasing E-Bikes to Employees

Rules are Complicated

Infrastructure

  • In some European countries, the lack of infrastructure is a barrier to employers offering e-bike leasing to their employees.
  • For example, the infrastructure for cyclists in Germany and The Netherlands is in place, allowing companies to simply offer e-bikes to their employees without the need to sell them on the idea.
  • However, according to Andy Naylor, consumer service manager at Raleigh UK, "from a cultural point of view, the UK has a lot of catching up top do."
  • People riding e-bikes need to feel safe on the road alongside cars and some countries in Europe, like the UK, do not have that culture.
  • In a survey of 2,000 UK commuters, one of the top reasons why e-bikes are not attractive is "the issue of heavy traffic and not feeling safe."
Sources
Sources