Volkswagen announces lease bike joint venture with Pon
Through its subsidiary Financial Services, Volkswagen has formed a strategic alliance with Pon Holdings to expand bike leasing in Europe and the USA. The Memorandum of Understanding (MoU) was signed at the IAA Mobility 2023 in Munich.
VW Financial Services has acquired a 49% stake in Pon's bike leasing arm, Bike Mobility Services (BMS). The partnership aims to accelerate the growth of bike leasing in Europe and the USA, with an estimated market potential of €10 billion in 2028 for European company bike leasing.
Through bike leasing, the partnership wants to offer extra benefits to employees and commercial customers and make e-bikes more accessible to more people. The MoU is an extension of a three-year-long ongoing collaboration between the partners in Germany, a burgeoning market for bike leasing that served as an incubator.
BMS is Europe's leading bike leasing company and operates in six countries (Germany, the Netherlands, Austria, Belgium, Sweden, and recently the USA). Remarkably, 90% of its lease bikes are electric. The prominent brands include BusinessBike, Lease a Bike, and B2Bike.
Through their collaboration with Pon, VW Financial Services intends to become Europe's preeminent captive in the bicycle industry. As the Dutch importer for the car brands under the VW Group, Pon has a longstanding history with the German car giant.
“The potential in bike leasing as an additional profit stream perfectly complements our current suite of mobility offerings. We are systematically enhancing our services for corporate clients and supporting our long-term growth in the European fleet industry.”, commented Dr. Christian Dahlheim, Chairman of the Board of Management of Volkswagen Financial Services AG.
Image Source: VW FS