Big Street Bikers was funded $98,384 to develop a business model and commercial roll out plan for a targeted, subsided ebike subscription service.
This project was in response to the Hoe ki angitū, the NZTA Innovation Fund’s challenge to provide underserved communities with greater access to transport. The objective of this project is to develop a funding and delivery model that makes e-bikes affordable for users and financially sustainable for a lease provider.
Big Street Bikers created an initial funding and delivery model, then amended the model after a literature review of alternative approaches used overseas and discussions with people working on transport equity projects, government representatives, Māori advisors, ebike lease companies, and academics. The feedback was used to develop the building blocks for a proposed ebike lease scheme. This included identifying entities and their roles and responsibilities.
Two scheme options were proposed and a financial model was developed for Option 1. Option 1 has two rates and is aligned with the subsidy provided for public transport. It proposes a standard rate with a $35 per week cost to the user and a $15 subsidy and no eligibility test, and a cost to the user of $15 per week with a higher subsidy of $45 for participants with a Community Service Card or that are 18 – 25 years old. The simple financial model built for option 1 provided possible funders or investors a sense of the likely uptake and costs. The requirements for an app were developed and some potential trial locations were documented.
The model proposes the creation of a funding entity, and a group of Approved Subscription Service Providers that would source the bikes and manage the subscriptions. The bikes would be provided to participants in partnership with local Community Activators. The model could be delivered as a single trial or multiple trials in the health sector or in community housing facilities, and then as a regional or national programme.
Big Street Bikers will continue to build on this approach and will liaise with central and local government and other entities interested in funding an ebike subscription service. They hope to be able to implement a trial of the model in the short to medium term.
View the executive summary here:
| Big Street Bikers. (n.d.). Ebike subscription scheme - objectives, financial models and commercial rollout proposals for a publicly subsidised subscription service [PDF, 170 KB]. Executive summary. |
