Green Commute Initiative review shows increased average spend via C2W

An annual review from the Green Commute Initiative handed to CI.N has illustrated a tendency for consumers to spend greater sums with the salary sacrifice scheme, in particular on electric bikes, which made up half of all orders.

During 2021, the Green Commute Initiative’s average order value hovered around £2,800. Orders between £5k to 10k accounted for 10% of business, with orders in the £10-20k bracket making up 1% of orders. This, says GCI, indicates employers and employees are prepared to invest in high quality commuting cycles to help their environmental efforts.

Orders with a value of less than £1k accounted for just 30% of total orders received and would generally be pedal-powered cycles. GCI says this reinforces how important it was for the firm to launch it’s no limits scheme in 2016. Prior to the launch of GCI’s model, which was adopted by the DFT, consumers were limited to a price cap of £1,000 by the traditional providers.

Around 300 new independent bike shops signed up to offer GCI to their customers during 2021, including all branches of Pure Electric. This brings the total number of registered bike shops to more than 1,600 on the books.

Joanna Flint, Marketing Director, says “We’re absolutely delighted to have yet another fantastic year of growth. After more than two years of copy-cat models, following the Department for Transport update on the scheme’s guidance notes, we have emerged stronger and more popular than ever. New customers are signing up at a rate we’ve never experienced before. We look forward to 2022 and the opportunities which come our way.”

A major development in 2021 was the introduction of a standard commission rate of just 5% for bike shops across both Corporate and Instant GCI orders. On top of this, a commission rebate was introduced for orders over £6,000, helping bike shops to keep more of their profits within their businesses and local communities. This move came on the back of a turbulent period for many Cycle to Work providers during which retailers were pushing back heavily against perceived high commissions, resulting in some marginal changes.

Rob Howes, GCI’s Founder and Managing Director, adds “I’m really proud of what GCI has achieved in the five years since I launched the service. I’m convinced that our success is down to our transparency, honesty and fair play ethos, plus we have a fantastic team of people and that truly makes the difference.”

Turning to working arrangements, the Green Commute Initiative has embraced hybrid working practices with all staff working from home when required and with “no interruption to service levels”. GCI also introduced an enhanced sickness policy for its employees and a menopause policy was also introduced to recognise the impact the menopause can have on employee health and performance.

Average sales prices, as well as the trends and success of brands in the e-Bike space are all tracked in CyclingIndustry.News’ annual report. The 2022 edition is due imminently, so to pre-register your interest in the report email the editor here.