Why a Fair Cycle to Work Scheme Benefits Employers, Employees and Retailers
Here's why I founded Gogeta and why you should partner with the only cycle to work scheme that is a certified BCorp.
I founded Gogeta because, as a bike retailer, I saw firsthand the harm that big, legacy cycle to work schemes caused to independent retailers. High commission fees charged by these legacy schemes often left retailers with little choice but to pass on costs to customers. Determined to find a better solution, I created Gogeta—a cycle to work scheme that offers superior savings to employees while supporting, not punishing, retailers.
Rethinking the Cycle to Work Business Model
To create a fairer system, I completely reimagined the traditional cycle to work business model. Legacy providers have long charged retailers commissions ranging from 10-15%. Given the narrow profit margins in bike retail, this often led retailers to add surcharges to customer purchases or exclude sale items from the scheme altogether.
At Gogeta, we adopted a more equitable approach. We distribute the costs of running the scheme between the two parties that benefit the most: the employees who enjoy significant savings and the retailers who secure sales. We charge retailers just 3%—equivalent to a standard credit card fee—and employees a platform fee of 6% of their voucher amount. Importantly, because the fee is part of the salary sacrifice, employees still enjoy tax savings, resulting in a net effective cost of just 3.2-4.3%.
Greater Savings and Flexibility for Employees
Even with the platform fee, Gogeta enables employees to save more than they would with legacy schemes. Retailers do not impose surcharges on Gogeta vouchers, and employees can use the cycle scheme to purchase sale bikes. Furthermore, while legacy providers may charge up to 7% of the bike’s value at the end of the salary sacrifice agreement to transfer ownership to the employee, we keep our fee as low as possible—just £1.
Creating a Cycle to Work Scheme That Employees and HR Teams Love
Our mission didn’t stop at creating a fair scheme; we wanted to develop a benefit that HR teams are eager to offer and that employees genuinely enjoy using. During the development of Gogeta, we consulted with numerous employers and employees, many of whom voiced frustrations with the clunky and cumbersome nature of legacy schemes. Common pain points included long waits for cycle to work vouchers, by which time the desired bike was often out of stock or had changed in price.
We addressed these issues head-on. Every employer that signs up with Gogeta receives access to a personalised portal where they can manage the scheme—inviting employees, approving applications, and processing invoices. We issue invoices immediately after an application is approved and release vouchers as soon as invoices are paid.
Introducing the Flexi-Voucher: A True Innovation
Gogeta is also proud to be the only cycle to work provider offering a flexible voucher. Unlike legacy schemes that require employees to spend their entire voucher at a single retailer on a single day, Gogeta’s flexi-vouchers can be redeemed in part, at different retailers, and at different times. This means employees can buy a new bike in the spring, gloves in the autumn, and lights in the winter—all from the same tax-free voucher. This innovation sets us apart from all other cycle to work providers.
Ethical Business and Industry Recognition
Today, we’re proud to be the only cycle to work provider that is both a certified B Corporation and endorsed by the Association of Cycle Traders. Our fair and transparent approach to business has earned us the trust of companies committed to ethical practices, and we are honoured to work with a variety of B Corp businesses.
Get in touch with us today to discuss how our fair cycle to work scheme can benefit your employees or sign up now so they can start saving right away.
