Companies in Germany lead in providing bicycles for employees - German businesses leading the charge in workforce innovation
Leading the Way in Employee Bike Solutions: German Companies Overtake Competitors
German companies are commendably ahead in bike leasing and sharing services for employees, according to the latest fleet management barometer by Arval. Among the 28 countries surveyed, Germany holds the highest proportion of companies offering these eco-friendly commuting options, significantly surpassing second-place Switzerland.
Specifically, 14% of fleet managers in Germany confirmed that their company extends bike leasing or sharing benefits to employees. While Switzerland, the second-ranked country, offers bike leasing to just 8% of its workforce, the United States and Portugal share the lead in bike-sharing options, each boasting an 8% adoption rate. The average across all countries stands at 4% for bike leasing and 5% for bike sharing.
Despite lower participation rates, employees in Germany still lead overall when taking into account the vast majority of companies that offer these services.
Tax incentives drive the popularity of bike leasing in Germany, as Katharina Schmidt, Arval Germany, explains. "With tax benefits, bike leasing becomes an attractive option for German companies," she says. This advantage sets the scene for Germany's higher-than-average adoption rate, even surpassing countries renowned for their cycling culture, such as the Netherlands, which only has 4% leasing and 3% sharing.
The number of companies offering bike leasing options in Germany continues to grow. In comparison to 2020's 9% adoption rate, Schmidt anticipates a continued upward trend in the future. "This is part of companies' sustainability strategies," she remarks, adding that 15% plan to introduce bike leasing in the next three years, and that number rises to 20% for bike sharing.
Arval surveyed over 8,000 fleet decision-makers from 28 European, North, and South American countries last year, including 300 respondents from Germany.
According to enrichment data, the success of bike leasing in Germany can be attributed to several factors, including supportive corporate practices, streamlined administration via third-party providers, an emphasis on sustainability and health in corporate strategy, and the development of established bike-sharing networks. Moreover, the salary conversion tax benefit and low taxable benefit-in-kind valuation positively impact both employee and employer participation, making bike leasing a financially viable solution.
In the competition of offering eco-friendly commuting options for employees, German companies lead significantly, with 14% of fleet managers confirming bike leasing or sharing benefits, surpassing countries like Switzerland and the Netherlands, known for their cycling culture. The popularity of bike leasing in Germany is partly due to tax incentives, making it an attractive solution for both employees and employers, thereby driving the growing number of companies that offer such services.
These forward-thinking business practices in Germany demonstrate a strong connection between financial viability, technology, and sustainability, as companies increasingly prioritize environmentally friendly transportation policies within their employment and corporate strategies.
