Mon, Jul 06, 2020 page15

• Bicycles push aside cars in Europe’s cities

  • Bloomberg
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  Bicycles are increasingly muscling aside cars on Europe’s city streets, as COVID-19 accelerates a shift toward pedal power.

  Even before the pandemic, bicycles were enjoying an uptick in demand from environmentally conscious consumers, but the risk of contagion on buses and subways have increased the appeal.

  The emergence of e-bikes, which boost pedal power with an electric motor, has removed some of the sweat factor, making biking a viable option for more consumers after lockdowns lifted.

  Governments are fueling the trend, offering buying incentives ranging from 100 euros (US$112.45) to as much as 1,500 euros for heavy business users of e-bikes.

  Cities from Berlin to Lisbon are also opening up more space for cycling, with almost 1,500km of new bike lanes promised as a result of the public health crisis, the European Cyclists’ Federation said.

  “People want self-supporting and sustainable mobility, that is a transformation in society. Corona is a phenomenal push in that direction,” said Susanne Puello, an industry veteran who helps run Pierer Mobility AG’s e-bike business, including the Husqvarna and R Raymon brands.

  The unit’s revenue is set to triple to more than 100 million euros this year compared with two years ago, and the bike maker expects sales to jump to about 500 million euros by 2025, putting it at the heels of industry heavyweights like Dutch manufacturer Accell Group, US’ Specialized Bicycle Components, and Taiwan’s Giant Manufacturing Co (巨大機械) and Merida Industry Co (美利達).

  Swelling demand has also propelled new services like Swapfiets. The Amsterdam-based company that offers bike subscriptions on Thursday announced plans to expand to London, Milan and Paris before the end of the year, after surging demand during the pandemic lifted its customer base to more than 200,000.

  The company — majority owned by Pon Holdings BV, the maker of Gazelle and Kalkhoff bikes — plans to add more electric-powered bicycles and scooters to its range. Swapfiets offers long-term rentals and differs from ad hoc services like Uber Technologies Inc’s Jump, which was folded into Lime in the midst of the spread of COVID-19.

  “Corona only contributes to the decision, but is not really the cause. Most people simply recognize that the bicycle is the best means of transport,” Swapfiets managing director Onno Huyghe said.

  During the shutdown, people across Germany spent twice as much time riding their bikes as before, according to Stephanie Krone, a traffic expert at German cycling association ADFC.

  Bike shops in the past few months have seen an “unprecedented boom,” but for that to continue, municipalities must improve infrastructure to accommodate all the newcomers, she said.

  Demand in Europe’s largest economy is backed in part by programs like tax benefits for employers to provide leased bikes for workers, as part of Germany’s efforts to combat climate change.

  Puello estimates that one in four electric bikes, which typically cost more than 2,000 euros, was leased last year.

  Germany is by far the largest e-bike market in Europe, with 1.36 million electric bikes sold last year — more than double the number three years earlier. By comparison, 3.6 million motor vehicles last year were sold in the country, and the market has tumbled 35 percent in the first half of this year.

  The lockdown prompted authorities in 32 of the EU’s biggest cities to bring forward planned improvements, the European Cyclists’ Federation said.

  Belgium, Denmark and the Netherlands are pioneering fast lanes designed for commuters.

  Many of the plans come at the expense of motor vehicle traffic. Notoriously congested Rome, for instance, mostly just painted bike lanes on existing road ways, and Berlin and Paris set up pop-up lanes in the midst of the pandemic.

  Women are one of the key drivers for increased e-bike sales. Giant created a separate female-focused brand, while Pierer’s Puello said that Husqvarna had cross-gender appeal because the Swedish namesake company’s portfolio spans chain saws to sewing machines.

  To a certain extent, the bike industry’s gain is automakers’ pain.

  “People switch to bikes for their commute to improve their health and fitness, to save money, because they enjoy riding, and for the sake of the environment. They want fitness without booking a boot camp,” said Hans Dohrmann, managing director of online bike retailer Internetstores.
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