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IAA Mobility 2023: VW Financial Services joins Pon Mobility Bike Service - democratizing bike leasing
Volkswagen Financial Services (VWFS) is gearing up in the topic of bicycles, announcing a strategic shareholding of 49 percent in Pon's bike leasing subsidiary Bike Mobility Services. This was reaffirmed with a "Memorandum of Understanding" at the IAA Mobility. The partnership aims to accelerate the expansion of bike leasing in Europe, but also in the USA, where significant catching up is expected. Cities and states are investing heavily in cycling infrastructure here.
They also want to democratize e-mobility through the increasingly popular pedelecs, by incorporating them into corporate fleets. The company bike as an alternative means of transport in commuter traffic contributes to the reduction of traffic jams and emissions, while at the same time improving the health of employees, the partners explained. Providers see a market potential of ten billion euros in Europe in the bike leasing sector. This is a clear trend they want to cater to and by no means a cannibalization, but rather a complement to the automobile business, reaffirmed Christian Dahlheim, Chairman of the Board of VWFS.
"The partnership with Pon is another important step in our development towards a broadly positioned mobility service provider and thus supports the strategic goals of the Volkswagen Group," emphasized Dahlheim.
He sees great potential in bike leasing and describes it as a "perfect complement to the current mobility portfolio". This systematically expands the offer for commercial customers and combines the strengths of the "leading automotive captive and the world's leading bicycle manufacturer". Pon has numerous brands under its umbrella, including Cervelo, Focus, Veloretti, Urban Arrow, Lease-a-Bike, Movelo, or bike subscription specialist Swapfiets. Cargo bikes are also to be part of the portfolio, it was announced.
"The company bike fulfills a clear need of employees, employers, and governments, which is why we were able to expand the business so quickly over the past five years. The e-bike plays a crucial role in the commuter traffic of the future," explains Janus Smalbraak, CEO of Pon Holdings.
Smalbraak pointed to the three mega-trends of urbanization, electrification, and health, where there is only one winner: the bicycle. Most city journeys are under ten kilometers. In these cases, the pedelec is often the best choice, argues the Pon CEO further.
Electromobility for Everyone
From his perspective, company bike leasing also means a democratization of electromobility by providing access to company mobility across all hierarchies within a company. The Pon subsidiary currently sees itself as the leading company in company bike leasing in Europe, but is only active in six countries so far. Currently, 600,000 employees in 65,000 companies, from large corporations to SMEs, are being provided with company bike mobility. The bikes are delivered 90 percent electrified, by 8,000 dealers. Germany is at the forefront of the bike leasing movement.
Cycling is generally very much in vogue: Citing figures from the Zweirad-Industrie-Verband (ZIV), it was noted that the industry's revenue amounted to 7.26 billion euros, driven by e-bike sales, which already account for 48 percent of the revenue. In 2023, more electrified than regular bikes could be sold for the first time.
The Pon group and VW share a long history that began 75 years ago with the famous sketch of the first VW Bus. Pon is also the largest importer of the VW brand in the Netherlands, and they are also cooperating in a recent joint venture with Porsche to develop e-bikes and micromobility solutions. Additionally, they are expanding Europcar into a global mobility brand.
Translated automatically from German.
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