Company Bike Leasing for Europe

Best‑practice description

The European Declaration on Cycling by the European Parliament, the Council and the European Commission from April 2024 “recognises cycling as one of the most sustainable, accessible and inclusive, low-cost and healthy forms of transport and recreation, and its key importance for European society and the economy”. To unleash the full potential of cycling in the EU, financial access to reliable (electric) bicycles is essential. This case study highlights the success story of a bicycle mobility solution from Germany that can serve as a blueprint for the rest of Europe: company bike leasing (CBL) via salary conversion.

Company bike leasing via salary conversion enables employees to lease personal (e-)bikes for commuting and private use, with instalments deducted from their gross salary, reducing financial burden compared to direct purchases.

Key Benefits of Company Bike Leasing:

• Financial Affordability: Easier access to reliable (e-)bikes via reduced and distributed expenses
• Economic Prosperity: Economic growth & employment in the bicycle industry and along its value chain
• Healthier Communities: Healthier employees and living spaces through more active & emission-free mobility
• Corporate Sustainability: Greener company fleets, less air pollution and minimised (parking) space consumption
• Individual Accessibility: Reduction of transport poverty and increase in social inclusion.

Implementation steps:

1. Governments: Facilitate salary conversion for (e-)bikes with low benefit-in-kind taxation
2. Employers: Provide employees with a sustainable and healthy benefit
3. Employees: Convert part of their gross salary for an affordable and reliable (e-)bike
4. Leasing Providers: Digitally connect all relevant parties for a smooth and compliant process
5. Leasing Banks: Lease bicycles to employers for use by their employees
6. Insurance & Refurbishment Firms: Insure/recondition the bicycles during/after the lease

Evidence of success / impact

Facts & Figures from the German Sustainable Mobility Blueprint:

• +269,000 employers on board
• 76% choose a higher quality bike through CBL
• +2.1 million company bikes on the road
• Up to 40% lower expense than direct purchase
• +€3.1 billion in provider turnover in 2024
• E-bike availability growth from 8% (2017) to 21% (2023)
• Contributes to 491,000 bicycle sector Jobs
• E-bikes: carbon footprint 12x lower than cars

Key lessons learned

CBL represents a multifaceted and proven approach to active and sustainable mobility needs while achieving economic, social, and environmental gains. By removing financial barriers and fostering accessibility to reliable (e-)bikes, the scheme helps to empower individuals to adopt more active and sustainable transportation habits, contributing to

• Reducing transport emissions and noise pollution, urban space scarcity and health costs
• Fostering employer and employee satisfaction and corporate sustainability
• Economic growth and employment in and around the bike industry’s value chain.

Beyond its direct social and environmental impact, CBL promotes economic stability and sustainability with its circular economy model of (e-)bike refurbishment. This approach, implemented in Germany by JobRad Group through its refurbishing entity JobRad Loop, extends the lifecycle of (electric) bicycles, thus reducing waste and lowering the environmental footprint of the industry. Besides driving innovation, the circular model creates a variety of job opportunities in the repair and resale sector.