What could be more efficient, faster in urban traffic, cheaper to run and reduce emissions than a minibus? Many firms may not see the humble e-cargo cycle as a viable alternative to diesel, or even the electric van, but a growing number of businesses are proving there are more and more possibilities for pedal power.

Immediate challenges facing fleet operators include the green transition from Net Zero to growing urban congestion and emissions-based charging zones. While these challenges present opportunities, things are currently moving in the wrong direction: more than a million vans, mostly diesel, were added to UK roads between 2014 and 2023; this trend has been accelerated by the online shopping boom caused by the pandemic.

It’s a trend that’s supposedly doomed: The government wants to end sales of new diesel vehicles by 2035. According to one estimate, by 2026 electric pickup trucks will be cheaper to run than diesel, but businesses can only reap these rewards if they have access to these electric vehicles. The industry has recently been alarmed by slow uptake and inadequate charging infrastructure.

‘Active travel’ (cycling and walking) measures such as Low Traffic Neighbourhoods are encouraging a move away from large vehicles in dense urban areas, and electric vehicles are at as much of a disadvantage in congestion as diesel vans.

From cargo bikes capable of carrying up to 300kg (with 39% of delivery vans in London nearly three-quarters empty) to cycle commuting policies that help staff stay fit and healthy and reduce parking demand, there’s plenty a bike can do. Do it for businesses.

Rob King runs Zedify, the UK’s largest e-cargo bike delivery network, delivering in ten towns and cities from Brighton to Glasgow, London, Manchester and Birmingham. Its clients include Zara retail and Zedify is teaming up with Evri to deliver ‘thousands of packs a day’ to Bristol’s clean air zone.

eCargo bikes reduce emissions by 80%

“We’ve proven that we can be much more efficient in cities, and some of the research we’ve done says it’s about 13% more efficient. In a penny margin business, that’s really important,” King says.

eCargo bikes can reduce 80% of CO2 emissions per kilometer compared to electric vans, and a logistics study found that a business transporting two billion packages a year could save up to £550 million by 2030 by switching 60% of its packages to e-cargo .

“You look at some of the things that city councils and local authorities are doing, whether it’s a clean air zone, a congestion zone… these are the things that give us a competitive advantage,” King says.

“Where Waltham forest has installed modal filters, suddenly a van takes an hour to get around, while a cargo bike only takes 10 minutes.”

“You can leave more,” adds Dan Parsons, of e-freight retailer and service center Fully Charged in central London. Absolute, which has operated in London since 1865, was struggling to maintain service levels and retain drivers in an increasingly congested city. Absolutely Sameday President Doug Hutchinson said vans cause “nothing but a disadvantage” while e-assist cargo bikes help riders carry the same thing as a small van all week long without getting tired. The company estimates that passengers can make 30 deliveries a day, while vans can make 10-12 deliveries, without ULEZ fees, parking fees or fines.

Dan Parsons adds a cargo bike: “It allows you to ride from the pickup point to the curb without fear of parking restrictions, pedestrian areas, and things in the van that will slow you down.”

Parsons says the appeal for larger firms is “CO2 savings, efficiency and finance”. “By delivering more in a given period of time, we achieve greater productivity and profitability, while saving the planet and meeting carbon reduction targets.”

Fleets responsible for ‘greening’ delivery miles

Advocacy organization Transport and Environment (T&E) argues that corporate fleets, which own 58% of all vans in the UK and drive 76% of van mileage, “have a responsibility to make those distances as green as possible”. Choosing cycle-based delivery companies can also reduce Scope 3 emissions, which are related to a business’s external activities, such as office deliveries, rather than its direct emissions.

There’s also the wow factor, making the brand shine for business customers looking to flex their green credentials. “The retailers we talk to, the customers we talk to, they absolutely love what we do,” King says. “The feedback we get from our customers is always, ‘You’re doing this job so much better than a van, because coming in on a cargo bike looks and feels right.'” Typically, those drivers are “They don’t get stuck in traffic, they tend to be happier and more smiley, and the doorstep experience is really great. That’s what really sells it: the association with the brand.”

But as with any new technology, there are also skills gaps (see side panel), financing and insurance gaps, and the issue of training drivers. Some pickup truck drivers will like warm, dry cabins, while others will prefer the predictability of cycling, being in the fresh air without traffic jams. Cargo bike delivery company PedalMe has developed a professional cargo bike driver course for companies that want to retrain drivers and teach them safe operation and loading, among other things. The company and its operations also have FORS accreditation.

Then there are the infrastructure challenges. While a minibus can pick up goods from a Midlands warehouse in the middle of the night and deliver them to central London within a few hours, cargo bikes require micro-warehouses in the suburbs, which are not yet largely available. T&E says a clear plan is needed to ‘explore establishing zero-emission logistics zones to accelerate the transition to electric delivery vans and cargo bikes in urban areas’.

Councils such as the City of London have experimented with shared centres, but these areas have not always been suitable. Zedify manages it itself. “By keeping these microcenters really close to where your customers are, you can deliver more volume,” King says. “While even a fairly large van will only do one large trip per day, our cargo bikes will often do two, three or four routes per day and go back and forth, so they are mostly full rather than mostly empty.”

Not only specialist companies are turning to bicycles, but also large operators are turning to bicycles. Amazon recently announced a £300 million investment in the UK in cargo bikes and micromobility distribution centers including Norwich. As King puts it: “This is huge. “This creates demand for the market and shows that this is a really interesting area.”

He adds: “I think everything is going in one direction. You can’t put more and more pickup trucks on the road. You have to find better, more efficient ways to move things between cities, because otherwise things will get bogged down. It’s a very simple thing to see what will happen: As the years go by and more deliveries happen, we have to find other ways to do this, and for us that looks at the wholesale change of how you operate the infrastructure. “I can use cargo bikes.”

While funding for pickup trucks is readily available, a number of subsidies for cargo bikes have not been enough for many operators to make the switch. Unsurprisingly, King points to outsourcers like Zedify as the solution for companies new to the industry. See also: B2C delivery companies like PedalMe in London.

Empower the workforce with pedal

The UK workforce is among the sickest in Europe, resulting in work absenteeism and long-term illness, and physical inactivity is responsible for one in six premature deaths. While most people drive to work, it is possible to bike all or part of your commute along with public transport, given the right incentives and infrastructure. Staff who cycle to work are happier, healthier and have fewer sick days.

National cycling charity Cycling UK runs a Cycling Friendly Employers (CFE) program to help companies increase active commuting. Following an initial workplace assessment, the charity will identify a path for improvement on everything from secure cycle parking, showers and lockers to workplace events such as bike breakfasts. Employers can sign up for the Cycle Work program for free, where staff can purchase bikes tax-free. Current CFEs with bronze silver or gold accreditation include companies with 10 staff and NHS trusts with 5,000 staff.

He says Turney runs the program. He says: “Either companies have spent some money on facilities or incentives, or the Cycle to Work Scheme, or Doctor’s Bike, or new bike sheds, and they want some sort of approval. “The other one is looking one year, two years, five years ahead, and thinking about how they’re going to get to Net Zero. those who are unsure of their reach, accreditation acknowledges where they are but also gives them a roadmap and direction of travel for what they can do.” Businesses recognize that reducing employee transport carbon is an ‘easy win’, saying it also helps them attract and retain staff who are becoming increasingly selective about where they work, particularly from a company’s ESG perspective.

lack of skills

Cargo loops are a relatively new technology, but several models, including the Urban Arrow, are emerging as reliable industry favorites. The network of repair centers for ICE and even electric vehicles is also not yet fully established. However, some specialist bicycle repair companies offer the types of services you would expect from a traditional service centre. Based in central London, Fully Charged sells and maintains fleets of cargo bikes for a range of transport and local B2C businesses. London courier firm Absolutely and even construction giant Conway have used his services. Bike maintenance company Fettle has stores in nine cities, including London, and works with Zapp, Ocado and FedEx, offering corporate service for fleets of “2 or more” cargo and e-cargo bikes. Fettle even offers roadside rescue for a fee. Four-Wheel Electric Assisted Vehicles, which resemble small vans only with a bicycle cockpit at the front, has appointed Halfords as its fleet service, maintenance and repair partner as part of its after-sales package, including remote locations. Larger fleets will likely repair their own machines, as roadside recovery can be expensive.