Simon MacMichael May 12 2017
A business that will launch this summer under the Cycle to Work scheme plans to give employees of companies signed up to the government initiative – provided they hit mileage targets agreed in advance.
Does that sound too good to be true? Well, here’s how it works, according to a report on Cycling Industry News.
The employee agrees how many miles they plan to ride under the salary-sacrifice scheme, which gives people tax breaks when buying a bike they will use to commute, with savings of between 25 and 40 per cent on the full price.
The employer commits to pay 20p per mile the employee agrees to commute – money that Free2Cycle says will be recouped several times over due to factors such as increased productivity and less absenteeism.
That predicted mileage will be multiplied by 20p to calculate the cost of the bike the employee would be entitled to, which is then ordered in the usual way under the scheme, with mileage subsequently tracked via a smartphone app.
CEO Eric G Craig told Cycling Industry News that bringing retailers on board was key to the business model, since not only would they “earn the majority of the margin they would have done in a traditional sale when they handle the handover,” but would also gain “a number of other benefits that will drive footfall and business back to retailers over the longer term.”
He said that the commitment by the employer to pay 20p per mile commuted by the member of staff “is likely to equate to a cost of £20 to £30 per month with a tenfold benefit being realistically achieved by many employers as a result of increased productivity, reduced sick days, decreased late arrivals, reduced parking costs and other benefits.”
It will also offer rewards to people who hit their commute distance targets.
“The objective of Free2Cycle is not only to get those who already cycle to take up a free bike, but to help and encourage those who could cycle but currently choose other methods of transport to get to and from work,” Craig explained.
You can find more information about Free2Cycle here.