Shutl received $297,000 from Hoe ki angitū, the NZTA Innovation Fund to test and trial an e-bike subscription service in Christchurch.
The project was in response to a first round Fund challenge ‘Integrating low emission first and last mile travel solutions’ . The primary objectives of the project were to make cycling more accessible, especially to those who hadn't previously considered it as a commuting option and to create an economically viable business model for e-bike subscription services.
In collaboration with international suppliers, Shutl developed an e-bike that met user needs while minimising costs in manufacturing and maintenance. There were 75 participants in the trial that cycled an average of 223 km each over the 8-week trial. Participants were charged a fee of $15 per week to make the service accessible to a broad audience. Over half of the participants had used a car to commute before the trial, with less than a third using a bike and ten percent walking. After the trial, 62% said they were very likely to now use an e-bike as their primary mode of transport. The trial resulted in a high proportion of potential new cyclists, with non-cyclists representing over half of those that said they would now use an e-bike as their primary mode of transport (33 out of 55).
While the trial aimed for a significant transition to ongoing subscriptions, only 13% wanted to continue, with most preferring to buy their own e-bikes. This inclination, combined with high labour costs and a wish to maintain a competitive subscription fee, challenged the commercial viability of the subscription model. Given the financial challenges, the subscription model would be best applied in collaboration with the public sector to support New Zealand's broader sustainable transport goals.
Despite some reluctance with the subscription model, the pilot was effective in reducing initial hesitancy about e-bikes and illustrates how a trial-to-ownership process can serve as a powerful tool for encouraging long-term changes in transport choices.
Read the full report here:
| Shutl. (2024). Christchurch e-bike subscription service pilot project [PDF, 42 MB]. HKA1.2.1 |
