FEATURE
OPINION
A POSITIVE OUTLOOK
Discourse around the Cycle to Work scheme has been ongoing since its introduction by the UK Government in 1999. Joanna Flint, marketing director at Green Commute Initiative, pens a column to shine a positive light on it.
ontrary to belief in some quarters, the Cycle to Work scheme is not the devil incarnate; it’s actually a very effective sales tool and payment option which more retailers should embrace. There aren’t many other arenas where a retailer can offer savings of 32-47% on full priced products, all year-round while offering the customer an easy payment plan. With C2W, there’s no need to slash prices to win the sale. Understandably, some retailers are ‘once bitten, twice shy’, having previously experienced the less favourable business tactics used by some traditional scheme providers. But not all providers are the same. Green Commute Initiative (GCI) has been doing it differently since 2016 when we revolutionised the industry with our no spend cap, no ownership fees, low commission rate scheme. GCI’s model is now copied and repeated across the industry - although not quite to the standards we hold.
C Uniquely, GCI is the only scheme provider which is a
not-for-profit social enterprise. We don’t try to bolster profits by charging ownership fees, platform fees or scheme participation fees. Our bike shop commission fee is just 5% and that’s to cover our costs. With a plethora of schemes on the market, it’s difficult to see an employer choosing a scheme which isn’t free to use for both them and their employees.
GCI’s only revenue stream is the 5% commission from retailers. With this small income, we have to ensure the scheme is fully compliant with FCA, HMRC, DfT, GDPR, ISO-270001 and ISO-9001 rules. That’s no small task. We are required to pay commissions to employee benefit platforms and government framework providers as well as invest in our IT systems, promote the scheme, and pay our brilliant staff. Middle men aren’t always popular but for the C2W market, a scheme provider protects the bike shop from a minefield of regulations and demands. Our retail partners are free to set their own prices
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to enable them to achieve the required margins – there is no race to the bottom with GCI. GCI’s model means the FCA Consumer Duty isn’t a concern for retailers. To further support our retail partners, the Commission Rebate scheme was introduced three years ago to allow retailers to reclaim a portion of the commission charged on individual orders over £6,000. If you don’t currently know about the scheme, check that we have your correct email address and that you open any emails that we send. GCI has shown solid growth over the last six years with 2023 set to be our biggest year yet, helping thousands of people make the switch to active travel. Our reputation precedes us and our customer reviews are the best in the industry. Customers and retailers are impressed by our quick and fair service which includes paying our retail partners promptly.
The scheme isn’t perfect of course, but it’s for the government to sort out how to incentivise active travel for those who are unable to use it. GCI will adapt its offering as soon as the scheme legislation evolves to become more inclusive. We believe that GCI’s model is the fairest for everyone and we do ask for some support in return. It’s really important for GCI to be listed as a payment option on retailer websites. Too much web space has been given over to legacy providers who dominate websites with details only relevant to their scheme and, as we all know by now, not all schemes are the same. We need to come together to highlight that there is a better choice.
November 2023 | 51 August 2022 | 7
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