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The founder of one of the “fairer” Cycle to Work schemes says that independent bike retailers have the power to force change and “shape their own destiny” as the row over the effects of the legacy schemes on the high street rumbles on.
When initially set up 25 years ago, the aim of the UK Cycle to Work program was to give employees of enrolled companies tax deductions on bikes and equipment, which are paid through salaries, in a bid to get more people commuting by bike.
However, independent traders across the country recently began to call on the newly formed labour government to reform the schemes in their current format with multiple issues being cited. Independents asked for help educating large employers on the negative wider social impact some of the schemes on offer have.
According to Gogeta founder Barry Scott, the conversations with businesses are already beginning to happen.
“HR teams are starting to understand that local bike shops are suffering. We’re actually getting approached by big employers all the time saying that they’re looking to migrate their scheme over to a more equitable one that’s fairer to retailers too,” Scott told Cycling Weekly.
“That is definitely happening more often, but at the same time what’s amazing is that retailers are starting to grab their destinies with their own hands and are starting to promote schemes that they find more attractive.”
Scott’s comments came as Gogeta reported an 800% increase in the number of employers signing up to the scheme, 1000% YoY growth in the value of their Cycle to Work vouchers and that over 80% of new employers joined Gogeta through retailer recommendations.
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Scott founded Gogeta in 2021 in order to offer a fairer deal for both retailers and customers and to address the high commission rates being charged by some of the legacy scheme providers. Scott’s scheme charges retailers just 3% commission which aligns with a standard credit card transaction fee in the UK.
Legacy options such as Cyclescheme, Cycle Solutions and Halfords Cycle2Work, charge commissions of up to 10%, leading one retailer to say they were selling bikes “at a loss“.
ACT endorsement
As a result of its work to provide a fairer Cycle to Work landscape, Gogeta recently became the only scheme provider to be endorsed by the Association of Cycle Traders [ACT].
“This level of growth is phenomenal but the stat I am most proud of is the number of employers that are signing up because retailers are recommending us,” Scott added as he reflected on his company’s recent growth. “To me that is proof that we’re not only on the right track but that retailers are on that journey with us.”
In recent months a handful of retailers have worked alongside the ACT in order to campaign for change. Some retailers even went as far as to say that the schemes in their current format are “sucking the lifeblood” out of shops nationwide.
Scott says that his mission is to continue to educate retailers to make clear that they don’t have to just accept the current setup, and that they can shape their own businesses’ future in relation to the schemes moving forward.
“For me it’s gone terribly wrong when retailers don’t like Cycle to Work as a concept,” he said. “When we first started this, there was a mindset from some retailers that was almost a bit of a fatalist mindset regarding the schemes. We are constantly writing emails to them saying you have more power with this than you think, which is so true.”
Working in partnership with retailers
He added: “There was this thought process that suggested retailers have no say in the matter. But you do have a say in this and can absolutely shape your own destiny.”
Advising retailers, he said: “If you don’t want to accept a particular voucher then it’s your business so you can do what you want, particularly if you want to promote things that are more attractive and have benefits.
“You don’t have to promote vouchers that take away half of your margin, there are alternatives out there. I genuinely feel that we’re starting to create something with retailers that feels like a partnership now.”
The hard work appears to be paying off, “retailers are actively saying to customers in shops, ‘have you heard about GoGeta? Let me explain to you why you should get them to be your company’s Cycle to Work scheme’ which is just fantastic,” said Scott. “You’re the masters of your own destiny. But you’ve got to grab the bull by the horns and continue to shape the narrative on this.”
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