Volkswagen enters the bicycle leasing market with Pon Holdings

Pon Holdings has brought in Volkswagen Group as a co-shareholder in its bicycle leasing business, Bike Mobility Services (BMS). Volkswagen is acquiring a 49% stake in BMS through Volkswagen Financial Services,

BMS currently holds a substantial 25% share of the bicycle leasing market and serves six countries under brands including BusinessBike, Lease a Bike and B2Bike. Its customers include major companies such as ING and ABN Amro. In the Netherlands, leased bicycles are subject to a 7% taxable benefit addition. Within a few years, BMS has supplied mainly electric company bicycles for 600,000 employees at a total of 65,000 companies and institutions.

Volkswagen and Pon believe that the current bicycle leasing market, with revenue of €1.5 billion, could grow to €10 billion within five years. They aim to retain their market share and expect the partnership with Volkswagen to support international expansion and cross-selling opportunities, offering customers both car and bicycle leasing.

Since acquiring bicycle manufacturer Gazelle in 2011, Pon has increasingly positioned itself as a mobility group. A series of acquisitions has made it a global market leader, with brands including Cannondale, Veloretti, Urban Arrow and Union. It also operates Swapfiets. Pon Holdings grew as an importer of VW cars. The partnership has deepened in recent years. Ten years ago, Volkswagen invested in Pon's car-sharing initiative Greenwheels, and last year the two companies completed their joint acquisition of car rental company Europecar.