E-Bikes For Business: Should You Rent Or Buy?

Opting for e-bikes for business can help you fulfil your environmental responsibility and stop climate change from getting worse. It also addresses the many struggles of blue-collar workers, who need affordable and hassle-free means of transport.

Apart from being eco-friendly and cost efficient, there is another significant aspect of e-bikes — bikes for businesses. Many businesses opt to rent or buy two-wheeler EVs to create a better-functioning, more efficient, and environmentally friendly option for employee commute and business operations.

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This is being witnessed primarily in the blue-collar segment, where employees have to travel and engage in manual labour. Another contributing factor to the growing popularity of e-bikes is the changing consumer behaviour. People are becoming more environmentally conscious and disengaging with products or organisations that indirectly increase their carbon footprint.

This is making businesses rethink how they function, pushing them to reduce environmental impacts and enhance sustainability by opting for low-carbon alternatives like buying or renting the best e-bikes for their employees and business.

The Impact of e-bikes on Businesses

Electric mobility is the future of transport, and any organisation or business cannot grow without keeping the future in mind. Having said that, let’s look at why e-bikes are better for businesses.

Low Maintenance

Most electric vehicle batteries have a lifespan of at least 15 years. They also have fewer moving parts, which considerably reduces their maintenance costs. Swiggy, for instance, is aiming to cover 8 lakh kilometres a day in EVs by 2025. The company believes it will cut down its vehicle running costs by 40%.

Rising Fuel Costs

Fuel prices have been soaring in India. The price of petrol and diesel increased by Rs 10 per litre, while CNG increased by Rs 18.57 only in the first few months of 2022, and this is only going to get worse in the future.

In most cases, organisations bear transport costs for employees. E-bikes can prove to be a great cleaner and more affordable alternative for companies. A move that can help businesses save millions.

Overcoming Environmental Limitations

E-commerce and logistics have grown tremendously in the past few years and have even better prospects in the future. However, this comes at a major price, i.e., more vehicles on the roads, leading to more pollution.

India cannot afford that, especially after the 2015 Paris Agreement. India aims to reduce the carbon intensity of its economy by less than 45% by 2030. In order to do so, 70% of commercial vehicles need to be EVs.

To fulfil environmental needs without compromising on ambition, it will be smart for organisations, especially e-commerce platforms, to start switching to e-bikes.

Government Subsidies

In order to meet its aim to reduce carbon emissions by making electric vehicles the norm, the government has offered direct incentives.

In its Faster Adoption and Manufacturing of Hybrid and Electric vehicles (FAME) scheme, 2019, the government has offered Rs 15,000 per kWh of battery capacity (to a maximum of 40% of the vehicle cost). It has also lowered GST rates to 5% for those purchasing electric vehicles.

Companies and employees can capitalise on this opportunity by investing in e-bikes.

Besides the business aspects, using e-bikes also helps businesses achieve some sustainable goals such as:

  • Energy security and low carbon power generation mix
  • Better air quality
  • Reduced greenhouse gas emissions
  • Reduced noise pollution

Renting Vs. Buying E-bikes: Which is Better?

Deciding whether to rent or buy the best electric bikes for business can be tricky.

E-bikes are priced higher than ICE-powered bikes, and the government also provides subsidies. Buying electric bikes may mean more investment, but your business may end up saving more money in the long run.

Renting e-bikes for employees: Most of the jobs that require employees to use a two-wheeler ask candidates to get their vehicles. This can delay the joining process or discourage candidates from joining altogether, as many lack the means. By renting e-bikes, employees can start earning a livelihood immediately. With job-ready candidates, companies too needn’t slow down operations, or look for alternative approaches to meet consumer demands.

Renting e-bikes for business has several perks. Besides the low cost of renting, there is also less paperwork. These factors make financing e-bikes for employees quite easy, making it a value-add and bringing in more talent. It also helps companies evade the added troubles of maintenance or servicing, fleet management, or inventory, making renting e-bikes an extremely attractive option for businesses.

Buying e-bikes for employees: Not every employee has the finances to purchase a two-wheeler. Even getting motor loans becomes difficult for many as banks are often unwilling to provide loans to those lacking a stable financial background. In such cases, companies can provide e-bikes to employees and make deductions from their weekly earnings. This way, employees can slowly pay for the e-bike while they own it. They can start working immediately without having to worry about money or paperwork.

Buying e-bikes for business: So far, renting e-bikes for business seems like the logical thing to do. Buying e-bikes means additional hassles, like maintenance, parking, servicing, etc. Besides these factors, the primary issue with buying e-bikes for business is the high costs involved. Unlike renting, buying e-bikes for businesses is an expensive affair, and not every organisation can afford to take such a step.

How E-bikes Might Impact Frontline Workers?

Currently, there are more than 300 million blue-collar workers in India. Due to the rapid growth in the logistics and transportation sector, this number is increasing multi-folds on a yearly basis. The pandemic has also led to an increased demand for hyperlocal services. This has resulted in many blue-collar workers taking up delivery work to ensure continued livelihood, and bikes are a prerequisite for their jobs.

It is difficult for blue-collar workers to participate in the opportunity to secure a livelihood for themselves without bikes, which many cannot afford. The increase in petrol prices is yet another costly requisite for employees and businesses.

Opting for e-bikes for business can help you fulfil your environmental responsibility and stop climate change from getting worse. It also addresses the many struggles of blue-collar workers, who need cheaper transport alternatives.

While not every company can afford to buy e-bikes for their business, they can always opt for the much cheaper renting option to ensure the growth of their business and employees. BetterPlace can help. We offer affordable e-bike rental services and frontline worker insurance for the benefit of your business and your employees.


FAQs

Q1. Do governments offer subsidies for buying e-bikes?

Many governments offer subsidies to buy e-bikes. This is done to promote an environment-friendly mode of transport and reduce carbon footprint. India is one of the countries where people get subsidies for purchasing e-bikes.

Q2. How is the government pushing companies to switch to e-bikes for business?

Subsidies are one of the ways. Some state governments are also taking severe measures. For example, the Delhi government has devised a policy to deploy 25% of all new vehicles to be battery-operated vehicles by 2024. To achieve this, it is necessary for e-commerce, grocery, and food-delivery platforms to shift at least 10% of their fleet to EVs in the first year of implementation of the policy.

Q3. Is finding EV charging stations difficult?

The difficulty of finding a charging station will depend on your area and how well-equipped it is. However, you can easily charge your EV in your garage. Also, most companies that offer e-bikes to employees do have charging stations.

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