Buzzbike concept to roll out in city

BUZZBIKE, a pioneering scheme which offers cyclists free leasing of a bike doubling as a moving digital advert for major brands, is set to roll out in Manchester after its launch next month in London.

Having spotted untapped demand for two-wheeled sponsorship opportunities following the success of so-called Boris bikes in London, Buzzbike founders Tom Hares and Andy Nunn launched a campaign to raise £350,000 from investors via crowdfunding website Crowdcube.

After securing that sum, valuing their start-up business at £1.4m, they plan to launch Buzzbike in Shoreditch, east London in September.

The duo developed a bike in partnership with specialist bike manufacturer Cooper – the business which invented the Mini Cooper – to provide an initial 200 bikes for lease and have a five-year strategy to put 6,000 bikes on the road.

They plan to roll-out Buzzbike around London and subsequently, other major UK cities such as Manchester.

More than 1,500 cyclists have signed a contract with Buzzbike offering a modified Cooper Monza bike – the original version of which retails for about £700 – with smartphone app, secure lock, insurance and servicing in exchange for accepting that their daily ride will double as a mobile advert.
 
Cyclists are contracted to use their leased bike on at least 12 days a month – a number that allows for poor weather, people taking holidays and illness – and to comply with the Highway Code.

Unlike Boris bikes – the cycling scheme launched by former London mayor Boris Johnson and now sponsored by Santander – each adapted Cooper bike is digitally enabled to promote tailored advertising messages and offers to passers-by. Riders are anonymously tracked so advertisers can target specific locations in London.

Accountants and business advisors Beever and Struthers have provided expert financial advice to Buzzbike.

Hares and Nunn agreed their first advertising partnership with Braintree, the online and mobile payment platform, part of PayPal.

Nunn said: “Our model makes us very competitive compared with traditional outdoor mediums, which I think lack a bit of innovation. We use the analogy of Formula One sponsorship. The brand printed on the cars is only a small part of what the advertisers pay for. It’s everything that you do around it that makes it a compelling opportunity. It’s the digital aspect that sets us apart.

“Brands will pay for solutions that go further than standard display advertising. Data capture and the ability to push relevant messages make this quite a premium sponsorship platform.”

Claire Kennedy, partner at the Manchester head office of Beever and Struthers, heads a specialist team advising the duo on tax planning for the future of the business, how best to structure their offer to investors particularly to ensure tax reliefs are obtained and general advice for them as a fledgling business.

She said: “Tom and Andy epitomise the entrepreneurial spirit that burns bright in Great Britain and that helps to secure the economic prosperity of UK plc. We wish them every success with their venture and look forward to cyclists throughout London and other major cities being able to use and enjoy a Buzzbike.”