The global e-cargo bike market is expanding rapidly, owing to rising demand for environmentally friendly and cost-effective transportation options. E-cargo bikes, also known as electric cargo bikes, are a cleaner and more sustainable alternative to traditional cargo vehicles, particularly in congested metropolitan settings. There are two varieties of e-cargo bikes- two-wheelers and three-wheelers. Given their mobility and ease, two-wheeler e-cargo bikes are ideal for negotiating narrow city streets and transporting small and large cargoes. Three-wheeled e-cargo bikes, on the other hand, provide great stability and a huge load capacity, making them perfect for heavy deliveries.
These e-cargo bikes are utilized for a variety of purposes, including food delivery, postal services, private transportation, and other utilities. In the food delivery industry, e-cargo bikes provide speedy and efficient delivery of meals and groceries, eliminating dependency on fossil fuel-powered vehicles. Postal services can also benefit from e-cargo bikes by improving last-mile delivery and reducing carbon emissions. Additionally, individuals can utilize e-cargo bikes for personal transportation, allowing for a greener and healthier commute option.
Key Drivers of the E-Cargo Bike Market
Environmental Sustainability
Growing environmental concerns and the desire to minimize carbon emissions are promoting the use of e-cargo bikes. With zero tailpipe emissions, e-cargo bikes offer a sustainable alternative to traditional delivery vehicles that run on fossil fuels. For instance, a study conducted by researchers at the University of Westminster highlights the potential of cargo bikes in transforming freight transport and combating climate change. The research compared the routes taken by cargo bikes with those of vans in London and found that cargo bikes were 1.61 times faster and emitted significantly fewer pollutants. In central London, cargo bikes delivered nearly seven parcels an hour, while cutting carbon emissions by 90% compared to diesel vans. The study also revealed that 100,000 cargo bikes were introduced in Europe between 2018 and 2020, resulting in substantial CO2 savings. The researchers suggest implementing supportive policies and infrastructure to maximize the potential of cargo bike freight.
Cost Savings
E-cargo bikes offer significant cost savings compared to traditional delivery vehicles. They have lower operating costs as they require less maintenance, have no fuel expenses, and often benefit from reduced parking fees or even exemptions. For businesses, using e-cargo bikes can lead to substantial savings in fuel costs and maintenance expenses. Additionally, individuals can save money on transportation by opting for e-cargo bikes instead of cars or motorcycles.
Supportive Government Initiatives
Governments around the world are implementing policies and initiatives to promote sustainable transportation. This includes providing subsidies, tax incentives, and infrastructure development specifically targeted at e-cargo bikes. For instance, in 2023, the city of Denver, Colorado, announced a financial assistance scheme for residents who purchase electric bicycles and electric cargo bikes. The program offers rebates of $300 for regular e-bikes, $500 for e-cargo bikes, and $1,400 for adaptive e-bikes designed for individuals with disabilities. To be eligible, applicants must meet income requirements and complete an application on the City of Denver's website. Additional rebate opportunities will be available throughout the year. Such supportive measures encourage businesses and individuals to adopt e-cargo bikes as a viable transportation option.
Expansions and Innovations by Major Market Players
The e-cargo bike market has significant contributors such as Accell Group, CERO Bikes, Rad Power Bikes Inc., Riese & Müller GmbH, Yadea, and others. These players assist in the market’s growth with the launch of new products and through collaborations and investments. Some of the recent developments in the market include-
• In May 2023, last mile delivery bike provider Zoomo partnered with Urban Arrow, a medium-sized cargo bike producer, to expand its product portfolio for urban logistics. Zoomo's customers will now have access to Urban Arrow's e-cargo bikes, integrating them into Zoomo's software, servicing, and financing options. This collaboration allows businesses to adopt more sustainable fleet solutions and reduce their environmental impact.
• In March 2023, Specialized introduced its first e-cargo bike, the Globe Haul ST, targeting urban and rural transport needs. Priced at $2,700, the Haul ST features a versatile accessory mounting system and a sturdy frame capable of carrying up to 190 kg for 60 miles on a single charge. The e-cargo bike is initially available exclusively in the US market.
• In November 2022, Amazon expanded its e-cargo bike fleet in the UK with the launch of three micromobility delivery hubs in Manchester and London. The hubs, part of a £300 million ($375.7 million) investment in the electrification and decarbonization of Amazon's transportation network, will enable more than two million deliveries per year, reducing the use of traditional delivery vans and improving air quality. Amazon has already made over five million deliveries in 2022 using its e-cargo bikes and electric van fleet in London.