Infrastructure & Cities

Banking on bikes

January 19, 2011

Global

January 19, 2011

Global

Since July 2010, certain corners of London have become home to a new form of public transport—bicycles for hire. Along with the Transport for London roundel logo in the bikes' livery is the bright blue logo of Barclays, the bank that has sponsored the scheme.

So while the scheme is getting more Londoners to use a new form of public transport, it is also an example of how corporate philanthropy is penetrating further into the services that contribute to city liveability. Users sign up for membership, pay a membership fee and can then pick up and deposit the bikes at docking stations around the city; journeys of less than 30 minutes are free of charge. Visitors can also buy casual access. Since the scheme was launched, more than 2m journeys have been made on the bikes, while some 100,000 or more members have signed up to use the service.

Barclays made a successful bid to sponsor the scheme via an open tender process that was run by Transport for London. As part of its five-year sponsorship, the bank is investing up to £25m (US$39m) in Barclays Cycle Hire and Barclays Cycle Superhighways, new cycle lanes into central London from outer London.

For Barclays, the branding rewards from funding these schemes are clear—the distinctively-coloured machines catch the eye as they make their way through London or sit in ranks on street corners. However, the investment will bring the company other benefits too, including bolstering the bank's environmental credentials.

"Branding is one benefit of our sponsorship," says Deanna Oppenheimer, chief executive of UK retail banking and Western Europe, and vice-chair of global retail banking at Barclays. "But it is also about making a positive contribution to society in London. The schemes have clear benefits of partnering Barclays with a sustainable and environmentally friendly mode of transport."

Ms Oppenheimer also points to another, longer-term benefit for the bank of being involved in this kind of scheme. "More cyclists on London's roads will help to create a friendly, attractive city with more pleasant shared spaces," she says. "This is vital if London is to continue to attract bright, talented people to live and work in the city."

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