AN INTRODUCTION TO
Eco Cycle is an innovative, automated cycle storage solution for up to 204 bikes. Eco
Cycle stores multiple bikes below or above the ground, with a retrieval time of just 13
seconds. Whether installed in public spaces or within new residential and commercial
buildings it provides the ideal solution for mass storage of bikes in cities.
BENEFITS OF ECO CYCLE
• Reducing on-street clutter and enhancing the public domain.
• Minimising the footprint of bike storage within
high-value space.
• Meeting statutory obligations for provision of cycle spaces
more efficiently.
• Improving take-up of cycling spaces provided, thanks to
greater security and convenience.
• Encouraging and facilitating a green mode of transport,
improving health and wellbeing among cyclists and the
population at large.
• Future-proofing developments and adding a unique and
distinctive selling proposition to a development or area.
NATIONAL ECONOMIC AND SOCIAL
BENEFITS OF CYCLING
ECONOMIC AND SOCIAL RETURN ON
INVESTMENT OF ECO CYCLE
Commercial use
Residential use
28%
£2.9 BILLION
total contribution to
UK economy
£128 MILLION
saving to UK economy per
annum in absenteeism
increase in volume of
cycle sales in 2010,
generating £1.62 billion
£1 : £13 - £19
The average cost benefit
ratio in in cycle schemes
investment
£1 : £1.72
£1 : £1.39
over 5 years
over 5 years
Through calculation of the Return on Investment (ROI) a
comparison is made of the investments (costs) associated with
the installation and management of an Eco Cycle Automated
Storage System and the financial and social (in this case, crime
savings) returns. Inclusion of health and wellbeing benefits as
well as other aspects such as convenience and potential to
improve the public realm would increase the ROI ratio further,
but these are more difficult to directly and solely attribute to Eco
Cycle due to a lack of immediately available research data.
For every £1 of investment by a developer who installs an Eco
Cycle Automated Storage System, a value in the range from
£1.39 - £1.72 is created to society.
ECONOMIC ASSESSMENT
of a typical Eco Cycle installation
CONSTRUCTION PHASE
=
£600,000
24 FTE (full time equivalent) jobs for 3 months, equivalent to 6 people working full time for a year3, 4, 5
GVA1 economic output
generated over three months
OPERATIONAL PHASE
Commercial use
£77,000-£129,000
income per annum
Space savings
£55,000-£109,000
GVA1 economic output per
annum generated in relation
to income 7
£75,700
commercial rent gain
per annum9 as a result
of space savings
NINE
FTE JOBS GAINED
£890,000
(for general office use)7
as a result of space savings
GVA gain per annum5 as
a result of space savings
Residential use
£37,000
income per annum
129
SQM
net GIA floorspace gain
as a result of smaller
footprint compared with
2-tier racking
for the same number of
bicycles annually3
Crime savings
£730
£17,000
£550,000
GVA economic output per
annum generated
residential sales value gain10
as a result of space savings
1
Value of bicycles prevented from
being stolen by secure storage
– ie. TWO bicycles from being
stolen per annum 11, 12, 13
SOCIAL VALUE ASSESSMENT
of Cycling
SOCIETY GAINS
= + 13p
=
V
Gain for society of 13 pence per cycled kilometre15
– 8p
Society suffers a net loss of 8 pence per km driven by car15
CRIME SAVING
0%
63
%
perceive
security as
an issue
for cyclists13
75%
of cyclists consider current
cycle parking in London to be
unsecure13
EVERY
90 SECONDS
a bicycle is stolen11, equivalent
to 376,000 each year
of bikes stolen from Eco Cycle
System – over 18 years,
across 50 sites25
HEALTH BENEFITS
=
11%
£15 BILLION
reduction in the risk of CVD
(in UK) by active commuting17
CVD was responsible for a cost
of £15bn in 201416
£160
3 bicycle trips per week results in a health benefit
equivalent to £160 per cyclist per year through: NHS
savings; productivity savings (i.e less time lost to illness);
fewer deaths through poor health.18
Reduced Congestion
ABSENTEEISM
20
%
CLOSED
£29 BILLION
£83 MILLION
£95 MILLION
cost to UK business per annum
from sickness absence19
saved by the UK economy by
employees taking one less sick
day a year than non-cyclists
equivalent to UK economy per
1% increase in cycling in terms
of fewer sick days
increase in cycling by 2017
would save UK economy
£207 million in terms of
reduced traffic congestion
& £71 millions due to lower
pollution levels22
SOCIAL VALUE ASSESSMENT
of Cycling
WELLBEING
Eco Cycle manufacturers
Apex run an
apprenticeship scheme,
supporting young people
into skilled employment
Mental health wellness
programme saves state
£4.17 for every £1 spent.23
HOW HAPPY IS YOUR COMMUTE?
The following graph shows satisfaction of commuters, relative to transport mode.24
PERCEPTION OF DAILY COMMUTE BY MODE
100%
75%
50%
25%
0%
PUBLIC ONLY
CAR ONLY
Dislike
Neutral
MIXED CAR
& PUBLIC
WALKING
CYCLING
Like
86%
of employees believe that
cycling to work has led to
health benefits26
60%
of employees participating in
the scheme believe that cycling
to work has improved their
productivity at work26
RESEARCH APPROACH
ECONOMIC AND SOCIAL VALUE
ASSESSMENT RESEARCH APPROACH
Economic and Social Value is an assessment approach
which converts socio-economic and community benefits
into monetary values. For Eco Cycle, financial metrics
have been identified that demonstrate the secondary or
indirect impacts of the scheme. By undertaking an
Economic and Social Value Assessment it has been
possible to calculate the Social ROI. This ROI
compares the costs of an investment in an Eco Cycle
unit to the economic and social value, thus giving a
financial metric to the benefits generated by the
installation of an Eco Cycle automated storage system.
Gathering
Information on
Eco Cycle
Review of
Secondary Datasets
and Information
Development &
Refinement of
Economic Model
Assessment of
Economic and
Social Impacts
This independent Assessment was developed by Turley Sustainability and Economics Team
using established Social Value methodology which included the Additionality Guide
produced by the Homes and Community Agency (HCA).
References
1. ROI = (construction Gross Value Added (GVA) +
operational income + rent/sales value from space
gain + GVA from additional employees + crime
savings) divided by (construction cost +
maintenance and management costs).
Operational impacts are calculated applying a 5
year persistence.
2.
Assessment is based on a 204 bicycle system
10. Halifax (2016) House Price per m2 Survey
11. Department of Transport (2016) Table: Bicycle
Ownership by Age
12. ONS (2016) Annual Population Estimates
13. Online:stolen-bikes.co.uk/statistics (last accessed
19/09/16)
3. HCA (2014) Additionality Guide
14. Eco Cycle Survey, 2016
4. Office of National Statistics (ONS) (2015)
Business Population Estimates
15. Cowi A/S & City of Copenhagen, 2009
5.
Experian (2016) Quarterly Economic Forecasts
6. ONS (2012) Census 2011
7.
HCA (2015) Employment Densities Guide
8. Online:tfl.gov.uk/modes/cycling/cycling-inlondon/cycle-parking (last accessed 19/09/16)
9.
Savills (2016) City Office Market Watch
16. Cebr for AstraZeneca. The economic cost of
cardiovascular disease from 2014-2020 in six
European economies. Aug 2014
17. Hamer M and Chida T. Active commuting and
cardiovascular risk: a meta-analytic review.
Preventive Medicine 2008;46:9–13
18. Cycling in London (2008). Prepared for: Transport
for London. Prepared by: Steer Davies Gleave
19. Price Waterhouse Coopers (PWC), The rising cost
of absence, 2013
20. Hendriksen IJ1, Simons M, Hildebrandt VH, The
association between commuter cycling and sickness
absence, 2010
21. TNO, Reduced sickness absence in regular
commuter cyclists, 2009
22. London School of Economics (LSE), The British
Cycling Economy, ‘Gross Cycling Product’ Report,
2011
23. PriceWaterhouseCoopers, 2008, Building a Case
for Wellness
24. Victoria Transport Policy Institute, Valuing Transit
Service Quality Improvements - Considering
Comfort and Convenience In Transport Project
Evaluation, 2016
25. Confirmation from Japanese Operator, Giken,
referring to Japanese Automated Cycle Storage
Installations (email: 28/09/2016).
26. Cycle to Work Alliance, Cycle to Work scheme
boosting employee health and wellbeing across UK.
Who’d have thought that a cafe
could park 408 bikes?
For more information on Eco Cycle contact:
Nick Knight
[email protected]
www.ecocycle.co.uk