How Cargo Bike Fleet Finance Is Powering Urban Delivery in the UK

Paul Thompson • June 17, 2025

Cities across the UK are changing fast — and so are the ways businesses move goods. As congestion, emissions regulations, and delivery demands grow, cargo bikes have emerged as a practical, low-impact alternative to vans for last-mile transport.


But for many operators, the upfront cost of building a cargo bike fleet can be a barrier. That’s where cargo bike fleet finance comes in.



At Avro Finance, we help UK businesses finance e-cargo bikes and related transport assets, supporting a greener, more efficient future for urban logistics.


Three white cars are sitting next to each other on a white surface.


Why cargo bikes are gaining ground



Major logistics companies like FedEx and DPD are already rolling out e-cargo bikes in UK cities. In fact, as reported by Fleet News, FedEx recently introduced electric cargo bikes in London to reduce congestion and emissions.


But it’s not just global players making the switch. Local businesses — from pharmacies to restaurants and laundry services — are adopting cargo bikes for:



  • Quick, agile deliveries in congested areas
  • Avoiding clean air zone charges
  • Offering zero-emission transport options
  • Meeting growing customer demand for sustainable delivery


Key advantages of e-cargo bikes for urban businesses



1. Access anywhere

Cargo bikes can operate in pedestrianised zones, low-traffic neighbourhoods, and zero-emission streets where vans can’t.

2. Avoid emissions charges

Electric cargo bikes are exempt from ULEZ, CAZ, and other city-imposed charges, helping you keep costs low.

3. Faster in traffic

In congested cities, bikes often outpace vans during peak hours, improving delivery times and efficiency.

4. Lower running costs

No fuel, minimal maintenance, and no parking fines. Over time, operating costs are a fraction of those for vans.

5. Good for business reputation

Consumers are increasingly eco-conscious. A visible, green fleet reinforces your sustainability values and can boost loyalty.



The challenge: upfront costs

A high-quality electric cargo bike can cost between £8,000 and £16,000 — and businesses often need several. You might also need trailers, helmets, branded gear, or storage setups.


For businesses that are scaling or just starting out, this can tie up valuable capital.


That’s where cargo bike fleet finance makes a difference.



How Avro Finance supports cargo bike operators

We provide asst finance for a wide range of transport businesses, including those focused on low-emission logistics and delivery.


Our finance options include:


  • Hire purchase – own the bike at the end of the term
  • Finance lease – use the bike for a fixed period with flexible end-of-term options
  • Refinancing – release equity from existing assets to invest in new bikes or equipment


Whether you're looking to fund your first two cargo bikes or roll out a fleet of 30, we can tailor finance terms to your needs.

Who we work with

We support businesses across sectors including:


  • Food delivery services
  • Florists
  • Fast food delivery fleets
  • Retailers offering local delivery
  • Pharmacies and healthcare providers
  • Dry cleaners and laundries
  • Logistics companies expanding zero-emission options
  • Public sector and community delivery initiatives


Even if you’re a startup or sole trader, we can often help. Our team takes a pragmatic view and considers more than just credit scores — we look at your business potential.


Cargo bike safety standards: what you need to know

New safety standards for cargo bikes and operators are on the horizon, following concerns about compliance and performance in commercial settings.


When you finance with Avro, we can help you fund bikes that meet these new standards — ensuring you stay ahead of the curve and avoid future retrofitting costs.


We can also help you budget for:



  • High-capacity batteries
  • Enhanced braking systems
  • Load-bearing trailers or panniers
  • GPS trackers and security systems


Why act now?

Clean air and zero-emission zones are expanding — and many councils are starting to favour (and fund) businesses that operate low-impact delivery services.


Investing in your own cargo bike fleet now positions your business as a clean transport leader. And with the right finance, there’s no need to delay.



What you'll need to apply

The application process is straightforward. We’ll typically ask for:


Basic business info (company type, trading history)

Details of the assets you want to finance

Any supporting financials or proof of income



Ready to electrify your urban deliveries?

Contact us to speak with our team about finance solutions tailored to your fleet and your goals.

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