The Impact of the Top 3 Strategic Imperatives on the European Two-Wheeler (2W) Cargo Bike Industry

Transformative Megatrends

Why

• The European Union government offers subsidies and incentives for businesses to promote using 2W cargo bikes.
• Europe's increasing urban population has been forcing last-mile delivery firms to use 2W cargo bikes to avoid road congestion by traveling in bike lanes.

Frost Perspective

• 2W cargo bikes are compact, have lower maintenance costs, and provide easier maneuverability than vans, which makes them the best choice among users and delivery companies.
• The European Union government should continue offering subsidies for 2W cargo bikes as doing so would help delivery companies transition their fleets.

Customer Value Chain Compression

Why

• More and more users in highly populated European cities prefer 2W cargo bikes for personal use, which is making them highly competitive when compared with other types of cargo bikes.
• Users can opt for electric cargo (eCargo) 2Ws (also called e2W cargo bikes) to enjoy lower fuel and ownership costs than cars and internal combustion engine (ICE) 2Ws.

Frost Perspective

• Easier maneuverability through traffic, need for less parking space, lower initial costs, and better physical appeal make eCargo 2Ws the best choice for personal use among riders.
• Access to eCargo 2W subscriptions in Europe enables users to pay based on their use. Cargoor, BAQME, Avancarog, and others are offering flexible solutions to free users from ownership costs.

Disruptive Technologies

Why

• Disruptive technologies in e2W cargo bikes, such as anti-lock braking system (ABS) and battery swapping features, allow riders to travel safely and without range anxiety.
• Bluetooth connectivity, rider's assistance, real-time location, anti-theft, and GPS are some features of connected technologies in e2W cargo bikes that enhance the rider’s experience.

Frost Perspective

• ABS, battery subscription, and rental options enhance rider safety and lower battery ownership costs for users.
• Companies have introduced connected technologies such as advanced rider assistance system (ARAS) and blind spot detection into e2W bikes, which are soon to be incorporated into e2W cargo bikes and increase rider safety while providing a much better experience.

Cargo Bike Segmentation

Two-Wheeler Cargo Bikes

• These cargo bikes have two wheels, one at the front and one at the rear.
• 2W cargo bikes are similar to traditional bicycles but have separate cargo areas at one end.
• Examples: Raleigh, Riese & Müller

Three-Wheeler Cargo Bikes or Trikes

• These cargo bikes are similar to 2W cargo bikes but have a third wheel at one end.
• 3W cargo bikes can carry larger loads than 2W cargo bikes. In some models, the cargo area can be detached.
• Examples: Vogue, Radkutsche

Four-Wheeler Cargo Bike or Quadricycles

• These cargo bikes have four wheels, and the cargo area is built as part of the vehicle body as it cannot be detached.
• 4W cargo bikes have a fully enclosed cargo area, with characteristics similar to compact cars and 2Ws.
• Examples: EAV, Onomotion, CityQ

Growth Drivers

Accessibility:

Compared with other cargo bike types, 2Ws can easily navigate through narrow roads, thereby contributing less to congestion. They are a suitable option for use in emission-free zones and areas prohibiting the entry of motor vehicles.

Electric Cargo Bikes:

eCargo bikes are becoming more popular in key European countries as they reduce operational expenses for both users and last-mile delivery firms.

Last-mile Delivery:

Increasing fuel prices, motor vehicle restriction zones in cities, and narrow roads allow last-mile delivery companies switch from their vans to eCargo bikes.

Government Support:

Major European governments offer subsidies and incentives for cargo bikes as they are focusing on lowering CO2 emissions.

Technology Integration:

Advancements in technology integration such as IoT, ARAS, blind spot detection, and cruise control will enhance the riding experience and safety for users.

Growth Restraints

Awareness:

The five countries in Europe that this study focuses on should promote awareness about using e2W cargo bikes in the other European countries where eCargo bikes find minimal adoption.

Range Anxiety:

A lack of well-developed charging infrastructure leads to range anxiety among e2W cargo bike users who must plan their trips accordingly.

Weather Conditions:

2W cargo bikes become difficult to ride in harsh weather conditions as they do not have an enclosed space for riders.

Safety Issues:

Cargo bikes can get stolen easily in Europe if users do not park and lock their bikes properly.

Load Capacity:

Compared with vans, 2W cargo bikes have limited storage space and are unable to deliver large loads.