Gogeta calls on retailers to actively drive cycle-to-work growth following 0% fee announcement
Posted on in Cycles News
Following a strong industry response to Gogeta’s decision to remove retailer fees entirely, the cycle-to-work provider is encouraging independent retailers to take a more proactive role in shaping the future of the sector.
Earlier this month, ACT partner Gogeta became the first UK cycle-to-work scheme provider to cut retailer fees to 0%, a move designed to improve margins for independent bike shops while removing one of the trade’s longest-standing frustrations.
The announcement generated significant interest from retailers across the UK, many of whom have contacted Gogeta to ask how they can become more involved.
Claire Hawksley from Gogeta said the response from the trade had been “phenomenal”, with many retailers recognising the opportunity to rethink how cycle-to-work schemes are presented to customers.
“A lot of retailers are asking what more they can do,” said Hawksley. “We’ve tried to be direct: if nothing changes, nothing will change. Retailers need to start actively recommending Gogeta, not just accepting vouchers.
“It’s the first rule of retail, upsell. If a customer can save more than 40% and it costs the retailer nothing at all, why wouldn’t shops be pushing that conversation?”
Hawksley also believes retailers need to be more transparent with customers about why surcharges exist under some traditional schemes.
“If customers don’t understand the difference between schemes, they’re never going to ask their employer to sign up to something better,” she said.
The comments build on a wider industry debate sparked by Gogeta founder Barry Scott, who recently published a detailed analysis arguing that cycle-to-work economics have been built on the wrong model for more than two decades.
Scott compared the cycle-to-work market with the rapidly growing EV salary sacrifice sector, where employers rather than retailers typically fund schemes through National Insurance savings generated by employee participation.
“The bike trade is hugely fragmented, with thousands of small retailers and weak negotiating power,” Scott wrote. “And a fear that ‘if we don’t accept this voucher, someone else will’. So for two decades, scheme operators could charge retailers high fees, and retailers reluctantly accepted it.”
Scott argued that retailer surcharges and restricted scheme acceptance ultimately create poor customer experiences, resulting in complaints for HR departments and lower overall engagement with cycle-to-work benefits.
Under Gogeta’s model, employers are charged 6%, funded through NIC savings generated by salary sacrifice, while retailers receive full payment with no commission deductions.
According to Gogeta, the approach creates a “win-win” outcome for employers, employees and retailers alike while also encouraging greater uptake.
The provider says 85% of its employer sign-ups originate from retailer recommendations, highlighting the important role local bike shops can play in driving awareness and adoption.
Hawksley believes this is where the biggest opportunity now exists for the independent sector.
“We’re not chasing enterprise accounts, the big legacy providers can have that fight,” she said. “Our market is the 5.6 million small businesses in the UK, accounting for more than 60% of the workforce. Most of them don’t have a cycle-to-work scheme at all.
“That’s an enormous untapped market, and bike shops are perfectly placed to unlock it.”
She added that while some retailers have consistently championed the model, others have yet to fully engage.
“There’s a cohort who consistently push business our way, and then there are those who haven’t really got on the train,” she said. “Which is why the ACT’s role in this genuinely matters. We’re looking forward to what comes next.”
ACT Director Jonathan Harrison previously welcomed the removal of retailer fees, describing it as “a meaningful step toward fairer terms for the industry”.
The ACT has partnered with Gogeta to support independent retailers in accessing the scheme and helping drive cycle-to-work participation through more sustainable and transparent terms.