New Cycle to Work scheme provider promises commuters bikes for 'free' - too good to be true?

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.

Free2Cycle says it works like this: Employers sign up to Free2Cycle online and each employee enters their planned commute mileage. Based on the number of miles they have individually committed to, employees are offered a free bike of their choice. The bike is then ordered from the supplier of choice, delivered to a supplier-authorised retailer before it is provided to the customer. 

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.

All well and good but some obvious questions do occur:

How will Free2Cycle check that employees are riding their agreed mileage?
Free2Cycle say each bike will be fitted by with a tracker and Free2Cycle will be launching an app when the scheme goes live that will enable people to keep track of their progress.

What happens if an employee can't keep to the agreed mileage?
If the employee continually underachieves on their agreed mileage then they will be asked to make a contribution to the cost of the bike.

Is there an uppper limit on the price of bike you can get under the scheme?
Free2Cycle say that bikes will be available at a range of prices under the scheme - depending on the agreed mileage - up to a top price of £1,750. Additionally the employee can choose to make a contribution to the purchase price bringing the top price up to £2,750. That also would seem to raise the possibility that if you wanted to buy a bike for weekend riding but your commute didn't add up to the purchase price that you could chose to top up the amount.

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.

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