Company bike leasing is becoming increasingly popular. Franz Tepe, Managing Director of eurorad Deutschland GmbH, discusses current trends in an interview with vdi nachrichten.
VDI News: Mr. Tepe, today's company bikes probably don't have much in common with the rickety old bikes that employees used to ride to the factory, do they?
Franz Tepe:Absolutely. Today’s leased bikes meet the latest technical standards. They’re made from high-quality materials and equipped with high-tech components. The selection includes a huge range of models across all price categories. The user—or their employer—decides where to draw the line. Eurorad offers bikes valued at up to €20,000.
How do employees get the bike they want?
By taking great care to choose the model that best suits them at the bike shop. This includes test-riding the bike—and, above all, having it ergonomically adjusted to their height and body type. This is extremely important to ensure that riding promotes good health.
Company Bikes Boost an Employer's Appeal
If employees are healthy, the employer is happy. What other reasons are there for offering this?
The health aspect should not be underestimated. The fact is that e-bikes get people moving who would otherwise be largely inactive. This isn’t just good for people and helps prevent diabetes and other diseases—it also benefits companies. Studies show that regular cycling reduces sick leave by up to 20% to 30% annually. Health is a key benefit, but not the only one. Then there’s the issue of employee recruitment: A company bike is a perk that enhances the company’s appeal as an employer. And finally, we mustn’t forget climate goals. Every company bike helps businesses achieve their sustainability goals.
What role do e-bikes play in corporate bike leasing?
Currently, 98% of the company bikes leased by Eurorad are e-bikes. This, incidentally, amplifies the effects mentioned above, since e-bike riders tend to ride frequently. Our top rider is a woman who even takes her bike on trips and rides 18,000 km a year.
Can company bicycles be used for personal purposes?
Of course, and there's more: Married employees can lease an additional bike for their spouse. The number of company bikes an employee can lease must be agreed upon with the employer.
More and more industries are recognizing the benefits of corporate bicycle leasing
And who will help if the chain breaks or the battery stops charging?
We have trained many of the dealers we work with to become TÜV-certified quality repair shops. They handle repairs, perform regular maintenance, and provide replacement bikes when needed. They also take care of technical updates. We place great importance on this, as safety-related equipment is constantly evolving. For e-bikes, repairs due to wear and tear are also extremely important. Eurorad covers 100% of the costs for this comprehensive package. We have deliberately chosen not to set a cost cap.
Eurorad Deutschland GmbH is part of ZEG, Europe's largest network of independent bicycle retailers, with over 1,000 member stores. Do you work exclusively with them?
No, that wouldn't be enough to serve all of our users. Our client Deutsche Post AG alone has about 300,000 employees eligible for leasing. We currently work with about 5,000 authorized dealers, and that number is growing every day. We are continuously expanding this network.
It stands to reason that the postal service needs company bicycles. Which other industries are currently turning more to company bicycle leasing?
We are seeing growth across companies in all industries. Two notable examples are home care services and property management firms. Employees of home care services usually have short distances to travel, and caregivers find it easier to find a place to park a bicycle than a parking spot for their car. The same is true for property management firms. Many properties are within a short distance, and a bicycle is more cost-effective than a car in these cases.
How Company Bike Leasing Works
- The employer enters into contracts with the provider.
- Employees who are interested in company bicycles enter into a loan agreement with their employer.
- The monthly payments are deducted from your gross salary as part of a salary conversion plan.
- Reductions in taxes and social security contributions result in financial benefits.
- The standard contract term is 36 months.
Anti-lock Braking Systems Are Gaining Ground for Bicycles, Too
In your opinion, what is the most exciting technical innovation in company bicycles?
Looking ahead, the focus is on ABS and the IoT. Anti-lock braking systems will also become standard on bicycles. Even during sudden braking, you’ll no longer be thrown over the handlebars. The Internet of Things (IoT) will open up a wide range of possibilities and spur further developments. If a rewards system is introduced in the healthcare sector, a transmitter on a company bike could use an app to collect activity data and share it with employers or health insurance companies, thereby earning users bonus points.
Finally, a question about the end of the contract: Can we keep the bikes?
In principle, yes. However, at Eurorad, this option is not included in the contract so as not to jeopardize the tax benefits of company bike leasing. Nevertheless, users can be sure they will receive an offer to purchase their leased bike.
