How infrastructure is hindering scale up of cargo bikes in last mile delivery

Growth in the delivery market has been matched by the demand for sustainable options. Cycling has some ready-made alternatives, not least cargo bikes in last mile delivery, but there are some challenges – and opportunities – before it can scale up and become an even more viable and attractive option. CIN speaks with Zedify Co-Founder Rob King…

The opportunity for the cycling industry to diversify into corporate as well as consumer sales remains a highly potent one. When consumer budgets are tight, corporate ones may not be so restricted, potentially buoying suppliers when trading is difficult. While it’s a logical progression for the industry that is already underway, achieving penetration into the
corporate world isn’t as easy as waving the proverbial magic wand.

But the timing is inarguably good, in fact it could hardly be better with not just an added focus on sustainability but also investors and large clients all with a cogent commercial need for businesses to clean up their operations and supply chains and cut their carbon. You don’t have an ESG policy? Then you might find your biggest customers are looking elsewhere in order to fulfil their own commitments to acting sustainably.

So far so good for cycling, but for a large proportion of businesses seeking more sustainable options, the first move is typically to look at electric vehicles as replacements replace petrol-fuelled fleets.

“Yes absolutely,” confirms Zedify CEO Rob King. “This is the easiest option for them as it requires no change to their current infrastructure. Remoding to EVs keeps everything the
same, it’s just a different source of energy. But as we know, this is not the solution. EVs give only relatively modest carbon savings and do not do anything to overcome the big issues
around congestion and space.”

“With cargo bikes, everything is different and new, so a community of support is needed for this to change.”

Having a ready-made solution for companies not looking to invent systems from the ground up is crucial to support those looking to incorporate cargo bikes or eBikes within their businesses. This is where the likes of Zedify comes in to fulfil that need, but there are lots of opportunities for like-minded businesses to slot into that set up, explains King: “It’s more ready than ever, but there’s still a long way to go. The issue is around support infrastructure.

“Getting an EV is very simple when it comes to finance, servicing, insurance and driver training etc because these are all known entities. With cargo bikes, everything is different and new and so a community of support is needed for this to change. Obviously companies such as Fettle are supporting this but we’ve got a way to go.”

Zedify has fast become a notable part of that infrastructure. Launched in 2018, Zedify was founded by Rob King who already operated Cambridge’s Outspoken Delivery and Sam Keam who also ran Brighton’s Recharge Cargo. The businesses merged to form Zedify, which services the UK with a growing network of zero-emissions delivery hubs. Starting with six locations across the UK (and now with nine hubs), Zedify has been successful in raising investment on multiple occasions. Its status is such that it now rubs shoulders with the
likes of BAE, TfL, Stagecoach and Menzies Distribition at the Chartered Institute of Logistics & Transport Award, where Zedify picked up an award in Excellence prize last year. The Institute said that Zedify scored the win because it is “a terrific example of how best practice in moving freight in an urban environment can lead to genuine innovation. Zedify are seeking to decarbonise urban logistics. Our demand for last mile deliveries continues to expand explosively, at the same time as we aspire to net zero impact on our environment.
Through partnerships with industry leading integrators and other private and public sector bodies, Zedify are demonstrating the ability to scale their model rapidly. Zedify are applying best practice ideas to redesign the network model to deliver an urban freight model fit for the 21st century.”

Cargo bikes in last mile delivery: Growing needs

Cargo bikes aren’t just handy for helping hit those sustainability obligations. Just in time, a favourite in the manufacturing sector for decades, has now firmly made the move to the consumer world where we expect to place an order and get our product within hours rather than days. Zedify recently ran a survey that illustrated that point, finding that half of retail businesses in the UK are losing customers due to a poor delivery experience.

Zedify polled 250 retailers, with a minimum revenue of £10.5 million in the UK, and discovered that living up to those customer expectations was proving a significant challenge. 45% said they are finding it hard to meet delivery times, 44% struggled with customer communication and 39% found increased shipping costs a real problem. Notably, 57% of UK retail companies are committed to investing in more sustainably delivery options. 32% want to work with eco-friendly carriers, 30% are looking for more ecofriendly packaging and 25% plan to reduce greenhouse gas emissions.

The majority of retail businesses have sustainability targets in place for deliveries and a whopping 46% plan to use cargo bike delivery. Speaking on those results, Rob King said at the time: “The last mile is rife with inefficiency, high costs and environmentally unsound solutions and our research demonstrates just how much retailers are struggling with it, so
much so they are losing customers as a result. This shows just how pivotal the delivery experience is for retailers when it comes to customer loyalty.

“But it’s also encouraging to see how many are looking to engage in more sustainable business practices with a focus on delivery. By investing in super low-carbon delivery options such as cargo bikes over vans, electric or otherwise, not only can retailers make massive carbon savings per delivery, they can ensure more accurate delivery times and a more pleasant doorstep experience, thereby improving the customer experience as a whole. Being sustainable is not just good for the planet, it is good for customer retention and happiness, which translates to growth.”

So with the pieces aligning for the cycling industry to extend its tentacles in the corporate world, not least via cargo bikes in last mile delivery scenarios, King intends for Zedify to be in the mix throughout the nation. He explains to CIN: “We’re building out our networks to support our microhubs so we can connect deliveries from one part of the country to another, ensuring our customers get the same great service whether they’re based in London, Manchester or Brighton. We’re expecting to triple in size so there’s plenty of execution challenge that comes with this!”

“COMMUNITY OF SUPPORT”

Zedify co-founder Rob King’s notes the need for a “community of support” to enable greater corporate market penetration for the cycling industry, not least in terms of servicing – an area traditionally strong for the bicycle retail sector. As noted by King, the likes of Fettle are poised to take some of that business and fill that gap.

Car servicing and repair giant Kwik Fit has not been slow to weigh up the opportunity. After announcing a partnership with Fettle in 2023, it moved to acquire the bicycle servicing company in early 2024. Founded by Jeyda Heselton, Fettle was set up to shake up the service experience in the UK’s cycling industry, offering “faff-free” bike repair including
collection, repair then returning bikes to customer doorsteps. The move is significant for automotive market stalwart Kwik Fit and also in terms of its intentions to take a slice of the burgeoning last mile delivery and cargo bike delivery sector.

100% ownership of Fettle has been transferred to Kwik Fit, facilitating the combination of Fettle’s innovative approach to cycle servicing with Kwik Fit’s resources, network and expertise in the automotive sector. The Fettle management team will remain with the business, including Jeyda Heselton, who founded Fettle in 2019, continuing to lead the company.

The duo said the strategy of Kwik Fit and Fettle is to “revolutionise the service experience in cycling”. Noting increased complexity as bicycles evolve with electrification, the move will ensure “that every cyclist’s needs are met with expertise and the reassurance of a brand focused on customer care”. The press statement also noted the potential the
move holds for cycle manufacturers who sell directly to consumers.

For full access to Zedify’s survey, visit: www.zedify.co.uk/download-the-impact-of-parcel-deliveries-on-uk-retail-success/