The Case for Cargo Bike Fleet Finance in Urban Last-Mile Delivery

As the pressure to decarbonise intensifies, businesses involved in urban logistics, food delivery, pharmacy distribution, or even laundry services are exploring practical ways to reduce emissions and operating costs. One standout option is switching to cargo bikes — and with the right finance support, this shift can be both affordable and sustainable.



Why cargo bikes make sense for cities?

Electric cargo bikes offer a low-emission, cost-effective alternative to vans for last-mile delivery. They’re agile in congested environments, free from many road restrictions, and significantly cheaper to run. A growing number of companies are now incorporating them into their fleets — and for good reason.

Recent deployments by FedEx Express in central London highlight this trend, as reported by Fleet News. These vehicles are helping major logistics firms meet their sustainability goals, cut operating costs, and navigate clean air zones without penalties.

A smart solution to rising urban challenges

Several factors are making cargo bikes increasingly attractive to businesses:

1. Cost Efficiency

Operating costs are far lower than traditional vans. There’s no road tax, minimal maintenance, and no petrol or diesel to pay for. They’re also exempt from ULEZ and congestion charges, which can add up fast in cities like London or Birmingham.

2. Environmental Impact

Switching to cargo bikes helps companies align with environmental, social and governance (ESG) goals. In fact, the growing momentum behind zero-emission freight zones is pushing more businesses to explore electric alternatives to reduce their carbon footprint — and cargo bikes fit the bill perfectly.

3. Regulatory Compliance

A new cargo bike safety standard announced this year sets out best practice for safe operations. Meeting these standards could open doors for larger contracts, partnerships, and municipal work — but also requires initial investment in compliant vehicles.



The role of finance in unlocking potential

Despite their long-term benefits, the upfront cost of e-cargo bikes can be a barrier for many small and medium-sized businesses. That’s where asset finance comes in.

At Avro Finance, we provide dedicated cargo bike fleet finance to help businesses spread the cost of investment over manageable monthly payments. Whether you’re upgrading a few vehicles or building a fleet from scratch, our packages are tailored to your specific needs — including hire purchase, lease, and refinancing options.

Finance not only preserves your working capital, it also gives you the flexibility to scale as your business grows. We’ve supported everything from local delivery start-ups to nationwide operators looking to meet new sustainability standards.

Getting started: What we look for.

Our team understands the unique needs of urban operators. We typically assess:

• Business type (sole trader, limited company, etc.)
• Fleet size and growth plans
• Credit history (including support for businesses with limited or adverse credit)
• Type of cargo bikes required
• Existing transport arrangements and any replacement plans

If you're switching from vans, we can also explore refinancing your current vehicles or structuring a phased transition to spread costs even further.



Who’s already making the switch?

Companies like Amazon, Evri and FedEx are investing in large-scale electric and cargo bike fleets. While these are multinationals, the trend is trickling down fast. Local pharmacies, catering companies, and cleaning services are increasingly turning to cargo bikes to offer quicker, cleaner deliveries while keeping costs low.

And with cities investing more in cycling infrastructure, from protected lanes to loading zones, now is an excellent time to futureproof your delivery model.



Final thoughts

Cargo bikes aren’t just a trend — they’re fast becoming a competitive advantage in urban delivery. With zero-emission zones expanding and customer expectations shifting, investing in cargo bike fleet finance is both a strategic and practical decision.



Need finance for your first or next cargo bike fleet?

Contact us to get a tailored finance package that fits your operation.