Gig economy competitiveness causing more to turn to illegal e-bikes and impacting high street traders, says cycling sector expert
Posted on in Business News , Cycles News
Falling gig-economy pay and increasing competition are creating incentives for delivery riders to use faster, illegal electric vehicles to complete more orders, while also creating wider problems for legitimate independent cycle retailers, according to Cycling Electric editor Mark Sutton.
Five bikes were seized during the first morning of a City of London Police Cycle Cops operation featured in Sutton’s article, with illegal, unregistered electric motorcycles making up around half of the vehicles stopped as riders increasingly seek speed to compete for deliveries.
The vehicles included machines modified with throttles, hidden controls and other methods of increasing speed, with Sutton highlighting how riders can face fees of less than £3 for longer journeys and pressure to complete more drops in a limited amount of time.
Sutton said: “I’m struck during this conversation by this rider’s knowledge of the law and indeed that of the gig economy vehicles pulled by the City Cycle Cops inside 90 minutes or so, it’s a 50-50 split of models that are illegal unregistered motorcycles (modified or manufactured) and models that turn out to be road legal.”
One delivery rider told Sutton that around 30 to 40% of those he works alongside use illegal throttle bikes to get ahead, while another source, PJ, said: “Now, when you look at Deliveroo subreddits you’ll see constant complaints about how the rates have absolutely cratered, commonly that riders are being offered less than £3 for big distances and double orders.”
The issue is also linked to widespread confusion between legal pedal-assist e-bikes and unregistered electric motorcycles, with a recent study referenced in the article finding that 84% of the public would struggle to distinguish between the two.
The study formed part of the work around the launch of E-Bike Positive trust mark, run in collaboration between the ACT and the Bicycle Association, which aims to help consumers identify legitimate, compliant e-bikes and distinguish them from illegal electric motorcycles.
Jonathan Harrison
ACT director Jonathan Harrison said the confusion was putting legitimate independent retailers at risk. He said: “Independent cycle retailers are being caught in the middle of a problem they did not create, with illegal and modified vehicles increasingly being described as e-bikes and the resulting confusion damaging confidence in the legitimate market. The industry needs a clearer distinction between the two categories, with initiatives like E-bike Positive helping to provide a way for consumers to identify businesses and products operating within the rules and helping to protect the reputation of the legitimate e-bike sector.”
Sutton highlights the impact this is having on legitimate bike businesses, including concerns around increased insurance premiums, restrictions on e-bikes in buildings and independent retailers refusing to service illegal vehicles because of the liability involved.
The article also points to legal pedal-assist bikes and rental schemes such as Port and Zoomo being used by delivery riders, although police encountered evidence of some rented bikes being modified.
Sutton ultimately highlights the link between diminishing gig-economy returns and the demand for speed, with one rider arguing that falling fees and intense competition can make illegal vehicles appear financially attractive despite the legal and safety risks.