By Barry Scott, Founder, Gogeta
For years, the Cycle to Work industry has asked retailers to fund a scheme that was supposed to benefit them. Commission charges of 10, 12, sometimes 15% — taken from the people actually selling the bikes and keeping the whole thing running. It was the wrong way round, and most people in the industry knew it. The problem was, nobody did anything about it.
That’s what Gogeta was built to change. And when we announced we were moving to 0% retailer commission — the first provider in the UK to do so — the response was something else. Not just enthusiasm. A sense that something had finally shifted.
The numbers back that up. In May — the first full month after the announcement — we issued 50% more bike vouchers than the same month last year, alongside a record number of new retailer sign-ups. That’s not a rounding error. That’s what happens when a scheme actually works in retailers’ favour.
Which is great. But we aren’t doing this for high fives and pats on the back.
This is where the real work starts.
The legacy Cycle to Work schemes were built for enterprise: large employers, HR teams, procurement processes, and enough volume to make the economics work for everyone — except, somehow, the retailers. It’s worth comparing that to how salary sacrifice worked when it launched for electric vehicles. Dealers weren’t asked to fund the scheme. The model was built differently from the start — because the EV market had more leverage and wasn’t about to accept that particular norm. In cycling, it just stuck. I’ve never quite understood why.
But that’s the past. Here’s what’s in front of us.
There are 5.7 million SMEs in the UK — 99% of all private sector businesses, employing around 60% of the workforce. The vast majority don’t have a cycle to work scheme. The person walking through your shop door on a Saturday morning is probably one of them: a small business owner, an office manager, someone who has never thought about whether the scheme applies to their workplace. Spoiler: it probably does.
This is the market nobody has seriously gone after. And it’s enormous.
Think about it this way. If the government announced a VAT amnesty on bikes — 20% off overnight — it would lead to a sales spike, and you’d keep the same cash margin. Cycle to work can be up to 47% off a bike. And with Gogeta, you keep your full margin. That’s not a voucher scheme. That’s a sales tool.
Which brings me to what I think is the bigger conversation retailers need to have with themselves.
The response to our announcement has been brilliant. We’ve heard from shops up and down the country who are genuinely excited about it. But the most common question I’m getting is: what can we do?
The answer is straightforward, even if it’s a bit uncomfortable: “more than you currently are”.
The first rule in retail is upsell. A £3,500 bike costs the employee the same as a £2,000 one when they’re buying through cycle to work. You make more margin. They get a better bike. Their employer saves on NIC. That’s a win-win-win — and it starts with you making the case on the shopfloor.
Gogeta lets you keep your full margin. There’s no commission coming off your end. So when you recommend it, you’re not doing anyone a favour at cost to yourself. You’re just doing good retail.
But — and I want to be direct here — some retailers are still making this harder than it needs to be. If you’re adding a voucher surcharge for using other providers (in order to recoup high fees), then tell them why. Don’t make the customer guess why their voucher gets a different treatment at your till. You aren’t the bad guys in this – if there are fees, then explain the economics involved. If they don’t understand the difference between schemes, they won’t push their employer to switch.
I’ve spoken to prominent bike brands who say they love what Gogeta is doing and want to do more, but don’t want to be seen as preferring one scheme over another. I understand the instinct. But I’d push back on it. If you don’t prefer us, then why should the customer? Why should their employer? Transparency isn’t just good ethics. It’s good business. If you believe Gogeta is the better deal, explain why. Don’t assume people will figure it out. Employers (and particularly large employers) will only change if their employees (your customers) demand it.
We built Gogeta because the industry needed a shake-up. I ran an independent bike shop for years before this, so I know exactly what it looks like from the other side of the counter. I remember working hard for a sale, only for the customer to come back with a voucher — and feeling gutted that we’d just lost 10% of our margin to a scheme that was supposed to help us. That model was broken. We built something better.
The 0% announcement was a stake in the ground. But on its own, it changes nothing.
What changes things is retailers deciding they’re not just accepting cycle to work vouchers — they’re actively selling the idea. Recommending Gogeta to customers. Explaining why there’s a surcharge for other schemes. Letting people know they’ll always get the best deal with Gogeta, and that their employer can sign up in minutes.
Nothing changes if nothing changes.
The opportunity is there. We’ve done our part. Now let’s get on with it.
Barry Scott is the founder of Gogeta, the UK’s first Cycle to Work provider to eliminate retailer commission charges.