German firms lead in providing bicycles for employees - Leading German corporations spearheading the labor force advancements
German Companies Dominate Employee Bike Leasing and Sharing
German companies are leading the way in bike leasing and sharing programs for employees compared to international competitors. No other of the 28 countries surveyed matches Germany's level of offering these services, according to the latest fleet barometer by fleet service provider Arval. The gap to second place is substantial.
Specifically, 14% of fleets surveyed in Germany confirm that their company provides bike leasing or bike sharing options for employees. In comparison, Switzerland follows with 8% in leasing, while the United States and Portugal tie at 8% in sharing. The average for all countries is 4% for leasing and 5% for sharing.
However, when considering employee usage, the numbers decrease as not all employees utilize the offered services. Nonetheless, Germany remains above average in this regard.
Tax incentives drive company participation
Katharina Schmidt of Arval Germany explains the higher participation rate in Germany due to tax benefits. "In Germany, bike leasing is financially attractive for companies thanks to tax incentives," she says.
The leased bike is considered a benefit in kind, but the taxation is favorable. The taxable benefit is only 0.25% of the bike's gross list price per month, keeping the tax burden low for employees. If the employer contributes financially (for example, covering part of the lease), this portion is tax-free for the employee.
According to a 2020 survey, only 9% of companies in Germany had a leasing offer. However, Schmidt expects the numbers to rise, as companies incorporate sustainability strategies into their operations. In fact, 15% of companies say they are considering introducing bike leasing in the next three years. For bike sharing, this figure increases to 20%.
When asked about the growing offer in Germany, Schmidt sees it as part of a broader sustainability strategy. "This is part of the sustainability strategy of the companies," she says, "and there's no turning back."
The survey polled 8,061 fleet decision-makers from 28 European, North, and South American countries, with 300 from Germany.
- The prominence of German companies in offering bike leasing and sharing programs for employees can be attributed to the tax incentives, making it a financially attractive option for companies within the environmental-science and lifestyle sectors.
- As technology continues to advance and the importance of sustainability in the science and lifestyle industries increases, we may witness a rise in the number of German companies implementing employment policies that include bike leasing and sharing options, further cementing their position as leaders in this area.
