Josh Hon interview: Are Cargo Bikes Ready to Replace Cars?

At Taipei Cycle Show, the Taiwanese company Tern showed the newest version of its GSD — the brand’s flagship compact cargo bike. The latest generation comes with an even stiffer frame, Bosch’s Smart System, stronger brakes, and an updated suspension fork. With a maximum gross vehicle weight of 210 kg, dual-battery options for extended range, and clever details, the GSD continues to position itself as an attractive option for urban families and businesses.

However, while celebrating the launch of the new cargo bike, Tern also sees challenges ahead for both the company and the cycling industry.  In this exclusive Q&A, Tern Founder Joshua Hon talks about why eBikes deserve to be considered serious transport solutions, what barriers still prevent widespread adoption, and why safety concerns, regulatory gaps, and price pressure from low-cost imports threaten the industry.

Mr Hon, most people automatically think of cars when considering vehicle ownership. Why do you believe eBikes should be considered in a similar way?

Joshua Hon: So many people have eloquently made this argument before me. But if I summarise, it comes down to the resources you want to use from point A to point B. Those resources are not only your financial resources but also the planet’s resources. Logically, you should try to use the least amount of resources to get from A to B. Today, operating a car for a year in the United States costs about $12,000. Does it make sense to use that car to make trips of 3 miles (5 km) or less? We at Tern would say no. However, you need to consider road safety, weather, and bike parking for each rider. Cars are great for longer trips where public transportation is lacking. But they don’t make sense for short trips in dense urban areas. And of course, this answer does not even talk about the other benefits of bike riding, whether for the environment, air quality, exercise, or noise pollution.

In your opinion, what financial or practical barriers still prevent people from switching from cars to eBikes?

Joshua Hon: Safety is a big one. If somebody doesn’t feel safe on the road, they won’t ride. It’s that simple. So governments should first and foremost invest in bicycle infrastructure, which also happens to be one of the most cost-effective ways to enable more people to move efficiently and safely.

Finance is also a barrier because a quality eBike isn’t cheap. Fortunately, many shops now offer financing for their bikes. Some countries also have tax breaks and incentives for bicycle commuters and these policies have proven to be very effective. See Germany or Belgium.

In some car-centric countries (i.e., the US), familiarity with bikes is also an issue. Customers simply don’t know if they’ll use the bike enough and feel comfortable riding to work. This is where subscription services are very valuable, eBike-curious people can get on the bikes and see if they fit their lifestyle. Our experience is that most who try Tern bikes on a subscription thoroughly enjoy them and stick with them.

What models in your line-up are especially attractive for the UK market—and why?

Joshua Hon: All of our eBike platforms do pretty well in the UK but we’re best known for the GSD, our compact cargo bike pioneer that has “inspired” many similar bikes. The GSD is popular because it can serve as a car replacement. You can take passengers or a load of cargo on a bike that’s the same size as a regular bike. So for short trips in busy urban areas, it’s simply faster and more convenient to get around by GSD. Plus, most kids prefer being on the bike, being stimulated by the world around them, rather than being inside a 2 ton metal box staring at a phone. Many of our customers have replaced their second car with a GSD.

What is your general observation when it comes to the developments in the UK market?

Joshua Hon: We see the market developing nicely when it comes to demand in the urban utility category. There’s still so much to be done in terms of what the government can do for bike infrastructure and incentives, but we definitely see a strengthening demand for our product. A bit more effort (i.e., budget) by the government should reap big rewards in bicycle mode share.

With the UK’s anti-dumping measures on imported bikes from China now revoked, what does this mean specifically for UK consumers and dealers?

Joshua Hon: Honestly, I don’t understand the logic. Consumers might not realize it, but there are effectively no mandatory eBike safety standards in the UK. When the lowest-priced stuff coming out of China was effectively blocked by dumping duties, then the most dangerous stuff was kept out of the market. But with the duties revoked, cheap/dangerous stuff will come flooding in, just as it has in the US. In the US, cheap/dangerous stuff flooded in and started causing fires. There were so many fires in New York that the city reacted by banning all eBikes that didn’t meet UL safety standards. Now other cities and states are following suit. However, the problem is that all eBikes got lumped in with the reaction, so there are buildings and homeowners’ associations that ban all eBikes. What has happened in the US is bad for consumers and bad for the bike industry. In my opinion, the UK should have first established a mandatory safety standard (for example, the EU standard) and then considered revocation of the dumping duty. But who am I to criticize the UK government with the current state of the US government?

What would you advise dealers and consumers to consider when evaluating quality and long-term service versus short-term savings or quick profits?

Joshua Hon: For dealers, our advice is to sell quality products and brands that you can stand behind and that will stand behind you for the long term. I’ll give Tern a plug and say that we just announced a 7-year Support program for all of our Bosch eBikes—for every Bosch bike we’ve ever made since 2017. This means that we’ll support by keeping spare parts available to keep the bikes on the road. A customer who buys an eBike should never hear, “Oh, your bike is 3 years old and needs a replacement battery—sorry, it’s out of warranty and that battery is no longer in stock”. And it’s not only replacements that are a worry. Many US dealers will not allow the cheapest e-bikes in their shop, for fear of “thermal events”. Others will service cheaper brands but only mechanical functions and will ask customers to take the battery home with them. For UK dealers, it would be wise to set policies for which brands you will service, and which you will not. Establish policies for battery storage and handling. You should also check with your insurance provider regarding fire coverage.

For consumers, our recommendation is to think of the eBike as a car. In other words, you need to think of the total cost of ownership—not only the sticker price but the amount you will need to sink in to keep the bike running for many years. And you need to think about safety; if you and your family are going to use this bike in traffic, you need to know that the bike meets some international safety standards. And consumers need to know that eBikes need regular service from trained mechanics with the proper tools, i.e., a bike shop. Just like consumers wouldn’t buy a car without a local professional service provider, they shouldn’t buy an eBike without a local professional service provider.

Globally, cargo bike regulations vary widely—for example, adult passenger transport is prohibited in Japan and Switzerland, while Denmark requires seat belts for children. How do these regulatory differences impact the adoption and use of cargo bikes internationally?

Joshua Hon: Good question. Yes, sometimes legal regulations lag years behind technological advancements. Lagging regulations slow down the adoption of our products, and this is where the bicycle organizations that lobby on behalf of the industry become critically important. This is why we’re a Bicycle Association (UK) member, which does great work getting us all organised.

What steps would you suggest for harmonising global cargo-bike regulations, to help more people confidently choose cargo bikes over cars?

Joshua Hon: Believe it or not, DIN 79010 is the only national (German) safety standard for cargo bikes. It’s the only national standard that tests bikes for gross vehicle weights above 120 kg. Yet, relatively few cargo bikes on the market test their bikes to this standard. You can imagine that if you put three passengers on a bike and send them hurtling down an 8% slope, the force going through the fork will be very different from a city bike tested with 85 kg. Different safety standards are needed for cargo bikes and they should be mandatory. I know that Europe is taking the lead in creating a harmonized standard for cargo bikes based on DIN79010 and we believe that this is the right direction. If countries adopt a safety standard for the cargo bike structure and one for the electronics, that would be an excellent start and solve the majority of issues that we see. After that, more investment in cycling infrastructure would make the choice easier.

Interview: Werner Müller-Schell