Gogeta to charge bike shops “absolutely nothing” to process a cycle to work voucher

Cycle-to-work provider Gogeta has announced it is eliminating retailer fees entirely – effective now. The move makes Gogeta the first scheme in the UK to charge retailers nothing to accept cycle to work vouchers.

Cycle to work contributes a significant percentage of bike sales in the UK, thought to be around 25% – but it comes with no little controversy, with providers charging commission that effectively sees retailer margin squeezed. Gogeta’s offer is in direct response to this challenge faced by bike shops, but the announcement comes with a challenge, said the brand.

“Most retailers don’t feel like they have a choice of which cycle-to-work schemes customers use,” said Barry Scott, founder of Gogeta and former independent bike shop owner. “When someone walks in with a voucher from a legacy scheme charging 10–15% commission, turning it away feels like turning away business. So they accept it. And nothing changes. I know because I faced that exact dilemma myself. That’s how the status quo has survived for 20 years.

“But the retailers who’ve driven Gogeta’s growth have shown there’s another way. 85% of our employer sign ups come off the back of retailer recommendations. The most active shops don’t wait for customers to arrive with a voucher – they start the conversation themselves. They point customers toward Gogeta and it works. Our growth is built on those retailers, and we’re genuinely grateful for every one of them.”

By cutting retailer fees to 0%, Gogeta has put skin in the game, it said, noting that the decision comes at cost to the business. But founder Scott is clear about what needs to happen next: “Imagine if VAT went from 20% to 0%. Retailers would be shouting from the rooftops that there was never a cheaper time to buy a bike. Cycle-to-work should be like that — and the savings can be more than 40% for customers. With 0% retailer fees, there’s no reason retailers can’t treat cycle-to-work as one of the best sales tools they have. A shop that actively promotes it drives more sales, higher basket values, repeat business — and keeps full margin. The revenue opportunity has always been there. The only thing holding it back was the fee. We’ve done our part. Now it’s over to the trade.”

Gogeta said itsmessage to the trade is simple: “Back the scheme that backs you. Twenty years of unfair fees. Changed one conversation at a time.”

Gogeta is calling on retailers to sign up, promote Gogeta on their website and on the shop floor. Find out more at www.gogeta.com/gogeta-cycle-to-work-scheme/