A Benefit for All
Interview with Bastian Krause, Managing Director of BLS Bikeleasing-Service GmbH & Co. KG
More and more people are switching from cars to bicycles. BLS Bikeleasing-Service GmbH & Co. KG, based in Vellmar, is supporting this development with its company bicycle model. Founder and Managing Director Bastian Krause spoke with Wirtschaftsforum about the various benefits of the company bicycle not only for employees but for everyone involved - and not least for the environment.
Wirtschaftsforum: Mr. Krause, how did you personally get involved with the service bike?
Bastian Krause: Actually, I come from a completely different background. I worked as a tiler and got my master's certification. During a sports accident, I broke my hands so severely that I had to look for a different profession. That's how I switched to the bicycle industry in sales 20 years ago. In 2012, the service bike was made equivalent to the company car. I discussed this with specialty retailers and saw the opportunities for the model, which brings benefits to everyone. The retailers back then saw it differently and thought it wasn't worthwhile. Since I have entrepreneurial spirit, I filled my garage with bicycles and looked for a leasing company with whom I could implement the model. However, the business model was not very scalable. After about two years, I therefore founded a new company with the current business model.
Wirtschaftsforum: What exactly does that look like?
Bastian Krause: With the company bike leasing model, we bring together several target groups. These include employers as our customers, employees as company bike users, and our partner dealers who have the bicycles. We take care of all the administrative effort for the dealers and offer employers and employees comprehensive insurance and service packages that make the model additionally attractive. Thus, through a lot of word-of-mouth, we have gained many new dealers every day and have grown very quickly. After starting regionally, we also expanded locally wherever we had a good salesperson or a good relationship with a bicycle dealer.
Wirtschaftsforum: How have companies embraced the idea of the service bicycle?
Bastian Krause: Many had more of a car perspective and were skeptical. A company car always involves costs and effort. If an employee quits, it sits in the yard, plus the hassle if there's an accident. We had to do a lot of educational work and explain that all the hassle doesn't stay with the company. With our insurance packages, we've taken all risks away from them. So, the companies have a great benefit they can offer to employees, without any cost or effort. Everything else that companies do for employee health, whether it's a fruit basket or yoga classes, costs money. In terms of the employee, the service bicycle has a major effect and creates a strong bond with the company.
Wirtschaftsforum: What is the financial benefit for the employee?
Bastian Krause: If an employee buys a bicycle privately for, let's say, 4,000 EUR including VAT, he needs to spend 4,000 EUR of his hard-earned net income. In our model, the employer leases the bicycle for 4,000 EUR and gets the VAT back from the tax office. So, he pays only the net lease rate. He recovers this through a salary conversion from the employee's gross salary. The employee, therefore, forgoes part of his gross salary in exchange for the service bicycle, making it cost-neutral for the employer. The employee, meanwhile, only pays the net value of the bicycle, and that too from his gross salary. Thus, he saves twice. Depending on the tax bracket, this is between 30 and 40% compared to buying with cash.
Wirtschaftsforum: So it's a win-win situation.
Bastian Krause: Exactly. Some people also lease a high-quality cargo bike and actually give up their second or even primary car. Then the savings are naturally immense. By the way, the company bike does not mean that the employee has to ride it to work. He can also use it 100% privately.
Wirtschaftsforum: The switch to cycling has even more positive aspects...
Bastian Krause: Right. Cycling, studies show, is the best physical exercise for the cardiovascular system. Especially with pedelecs, the peak load is not so high. As a consequence, regular cycling leads to fewer sick days in companies. Aside from the health aspect, the next big topic is the reduction of car traffic in cities. Often, you can get around much faster by bike. Companies also need to provide fewer parking spaces. And of course, every journey made by bike instead of car helps the environment.
Wirtschaftsforum: What actually happens after the leasing contract expires?
Bastian Krause: Approximately 90% of employees keep the bike after the three-year term. 10% of the bikes come back to us. Many then get the next bike because in the meantime there are new innovations. We prepare the returned bikes and put them back into circulation. This is part of our sustainability concept. For this purpose, we founded the company BIKE2FUTURE last year.
Wirtschaftsforum: How many companies are currently using your services?
Bastian Krause: We have around 75,000 customers from all sectors of the economy in Germany and Austria. In total, we work with about 8,000 dealers.
Wirtschaftsforum: What developments do you anticipate for your company in the coming years?
Bastian Krause: There is still a lot of potential in the companies. Therefore, I see very large growth opportunities for us in Germany and Austria. However, we are always dependent on the market. If the trade sells many bicycles, we also make a lot of revenue. On the other hand, if it experiences a slight downturn, that affects us as well. In a strained economic situation, the creditworthiness of many companies is not so good. Then we might not be able to serve all interested companies because the refinancing banks do not provide the necessary funds. We always look beyond our own confines, including considering entering additional countries. At the companies, we see the challenge of managing more and more benefits. Therefore, in 2024 we integrated the software company Probonio into the Bikeleasing Group. This allows us to offer a multi-benefit platform that is directly integrated into payroll accounting. This makes it very easy for companies to offer additional benefits such as non-cash benefits, corporate fitness, meal vouchers, and much more from a single source. This also helps us to develop faster and better.
Wirtschaftsforum: In your opinion, what makes Bikeleasing so successful?
Bastian Krause: Primarily, it is our team, which is 100% behind what we do and enjoys it.