According to the ACT, Gogeta will offer low commissions to bike retailers and an online marketplace where employees can browse live stock and see tax free cycling savings in real time.
There is also a platform where employees can apply and buy tax free, reducing the administrative impact on bike shops and employers.
A spokesperson for the ACT said: “For too long, the Cycle to Work market has been dominated by a handful of legacy providers who haven’t fundamentally changed their offering in the almost 25 years since the scheme was launched.
“These salary sacrifice schemes charge independent bike retailers extortionate commissions of up to 15% on every sale, which are inevitably passed on to the consumer. They offer poor user experience, with employees forced to choose from limited stock and pay shock ‘end of term’ one off payments once they have paid off the bike costs.
“Now, for the first time, Cycle to Work has been reimagined to satisfy employers, employees and key stakeholders in the supply chain and most importantly IBDs who have kept the scheme alive for 24 years.”
Gogeta entered the market in June this year, claiming to offer “lowest commission in the industry”.
There is no doubt that some legacy providers have come in for criticism from IBDs over the years.
As the ACT says, many have continued to offer similar products since the Government launched the scheme in the Finance Act 1999.
To address this, the industry has seen other innovative players enter the game such as 2022 BikeBiz Award winner Green Commute Initiative (GCI), a non-profit social enterprise Cycle to Work provider that sets commission at 5%, with IBDs able to set their own prices.