Opportunity

Spinway for Mattew

There has been a significant increase in the last five years of Australians riding bicycles. Higher car costs, the need to exercise, a desire for a greener environment and government support of the industry has all contributed to the rapidly growing market.

In fact, The Australian Bicycle Council reported in 2011 that around 18% of Australians ride a bicycle on a weekly basis: 3.6 million recreation riders and 1.2 million transportation riders per week. That is a lot of people riding bicycles in Australia.

Additionally, the number of Australians cycling has increased at a rate of 10.6% per year since 2001 (Australian Sports Commission, 2008) and in 2011 and for the ninth consecutive year in a row, bicycle sales exceeded car sales, roughly 1.5 bicycle sales per car sale.

Government Support

Government support is a major reason for the rise of the cycling industry. Federal, state and local councils are spending billions of dollars on the infrastructure of new cycle paths and bicycle initiatives to increase rider-ship even further in the future. The Federal Governments National Cycling Strategy aims to double cycling participation to 8 million per week by 2016.

Furthermore, all local councils have bicycle plans to achieve a more bicycle friendly community. Their plans consist of:

      • building high quality cycle paths and routes for local cycling trips.
      • producing a connected cycling network – all cycle paths connecting to each other.
      • increase cycling participation amongst it’s population.
      • making cycling safer.

Improved cycling conditions within the community, leads to an increase in cycling participation and with more people riding, this leads to improvements in health, productivity, the environment and makes the community more liveable, attracting more residents.

More people riding a bicycle will

• help reduce urban traffic congestion (estimated to cost Australia $20 billion a year by 2020 if we do nothing)

• improve air quality and reduce noise in our neighbourhoods and cities (making us healthier and happier)

• reduce the carbon emissions from transport (currently responsible for 15% of Australia’s carbon footprint and increasing)

• get more people in the community healthier and fitter and so reduce the cost we all bear for inactivity (estimated to now cost Australians more than $13.8 billion each year)

Riding a bicycle benefits individuals by

• improving their health and well-being (regular bicycle riding makes you happier, healthier and live longer)

• reducing personal and family expenses (ditching one family car and cycling to work can save up to $800 a month)

• saving time, especially on short trips (when travel time is measured from door to door journeys up to 5 km)

• connecting people to their community and environment

• providing people of all ages with a sense of freedom and fun.

Market Problem

Limited car spaceThere are approximately 5 million bicycle riders per week in Australia but what happens when these people go on holidays and can’t take their bikes on a plane, train, bus or in the car. What happens to the Australian’s who do not own a bicycle but want to go for a ride. Or what happens to the percentage of the 6 million international tourists that come to Australia every year that want to go cycling.

They have to hire bicycles!

And this is where the Problem Exists: tourists and locals have poor access to bicycle hire. It’s a hassle and expensive to hire from bicycle retail shops. Tourists have to leave their hotel and trudge all the way down to a bicycle retail shop that is out of the way and in a town they are unfamiliar with. When they get there, they pay a premium because the bike shop has rent and staff costs to cover. When their finished, they have to return the bicycle to the shop before it closes and then get back to their hotel again. Just thinking about going through that process, all most makes bicycle hire not worth it!

Bike Shop Problem

Spinway has the solution!

Just like coke vending installed drink machines into locations resulting in customers no longer having to travel long distances to purchase their drinks. Spinway will install bike stations into hotels, resorts, tourist parks, councils, business parks, visitor information centres, tourist attractions, shopping centres and many more locations and provide bicycles when and where the customer needs it.

Convenience, Visibility of the bicycles in the locations that leads to impulse buying and Price Value is at the heart of the Spinway business model. 

Locations

Locations love the Spinway concept because they get a FREE automated bicycle rental station that is green, healthy and fun for their customers. Spinway’s head office receives hundreds of enquires a month from locations who want to provide their guests a value added bicycle hire service to enjoy the local attractions. They especially like the idea that the station is automated and they do not have purchase, store and maintain the bicycles themselves.

Location Benefits:

      • No cost – Spinway operators own the stations and debits guests a small fee to hire the bicycles through their credit card.
      • No work – Spinway operators service and maintains the bicycles on a fortnightly basis.
      • No liability – Spinway operators provide both public and product liability for every hire.
      • Green transport – Spinway bicycles reduces the need for cars and taxis for their guests.
      • Value added service – Convenient and low cost bicycle hire!
      • Outdoor advertising – Bicycles can be branded in the hotel’s logo and colours.

International Tourism

In 2010 there were 5.7 million overseas travellers in Australia, of which a large percentage were from Asian and European countries that have the highest bicycle usage in the world. This presents a significant opportunity for Spinway to target the locations in Australia that has the largest proportion of international tourists and offer them convenient bicycle hire for their holidays.

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 International Tourism

The Bike Hire Revolution has begun. Join our team and provide a new bicycle hire service in your area.