When Marta Francisco takes her toddler, Daniel, to daycare before commuting to work in Sydney’s CBD, she doesn’t use a car. Instead, she navigates the hilly route from their Clovelly home in Sydney’s east on an e-bike. She and her partner use car share companies in addition to the car they own, but decided to also sign up for a $59-a-week e-bike subscription from rental company Lug+Carrie.
“It’s always been on our radar how to remove rego costs and fuel,” Francisco says.
“I had a pushbike before Daniel came along and I liked the idea of not having to purchase something new to try out an e-bike.”
Francisco is among the growing number of Australians turning to electric bikes, as stubbornly expensive petrol and the high cost of insuring and maintaining cars has led to increased demand from families for models with child seats.
Australian Automobile Association research found transport costs for car owners grew by 8.8% in capital city households and 10.1% in regional areas over the most recent financial year – outpacing the general rate of inflation of 6%.
That came as petrol prices hit records in Brisbane at the end of September and remain well above $2 a litre across the country.
While electric car owners are largely immune to the soaring cost of petrol, the barriers to entry are high. Few models cost under $40,000 and the secondhand market is fledgling.
As a result, relatively affordable electric bikes have stood out as a cost-cutting alternative to gas-guzzling cars while kerbside e-bike rental companies are spreading across capital cities.
Exercise, fun and low cost
In 2017 when states and territories adopted uniform laws on the use of e-bikes, about 9,000 were sold in Australia. Since then sales have doubled each year, according to the Bicycle Industries Australia general manager, Peter Bourke.
More than 100,000 were sold in 2022 and this year’s sales are on track to be even higher.
Bourke says the family demographic and inner-city delivery users have recorded the most pronounced growth in the past year.
Entry-level models cost about $2,000, sturdier cargo models parents can use to carry children go for about $5,000 and premium models can cost up to $20,000.
Bourke says people might perceive some models as expensive but the equation becomes clearer if e-bikes are seen as a way to replace a second family car for short-range trips.
While car trip costs include petrol and tolls, “e-bike trips cost in the cents”, Bourke says, noting the average bike costs about 15 cents to charge up. (Bourke also says the recent cases of e-bikes igniting while charging are almost always the result of cheaper third-party chargers or replacement batteries that aren’t accredited – and that the fires have not curbed their popularity.)
“Then you factor in that you’re not paying for parking, you’re able to get close to your destination and with these models you’re still getting exercise, as you can pedal, there’s the health benefit.
“It’s also just fun. We don’t know anyone who has bought an e-bike and tried to give it back.”
E-bikes make cycling a reliable mode of transport for commutes with hills or longer distances.
“It gives people the confidence they’re going to finish the ride,” Bourke says.
Alison McCormack, the chief executive of the Bicycle Network, said both regular bikes and e-bikes have grown in popularity, but “electric bikes appeal to new riders because their power compensates for any lack of fitness and flattens out the hills”.
“They also make trips seem shorter, while still providing a level of physical activity.”
According to Bicycle Network’s surveys, health is the main reason for taking up riding, though financial and environmental concerns are also emerging as factors.
McCormack said the operating costs of any bike, standard or electric, are low compared with motoring or public transport, so “they pay for themselves rapidly”.
For those cautious about investing in an e-bike, there are long-term leasing companies.
Ben Carr, the co-founder of Lug+Carrie, says the company has noticed an increase in demand from families frustrated at the high cost of car insurance and petrol. It had its strongest month ever in September and has just expanded to Los Angeles.
“Not many people are thinking about dropping their car altogether, but people are looking at that second car and rethinking the trips they make on that,” he says.
Their e-bikes are most popular in suburbs between 5km and 15km from CBDs, where public transport gaps and costs make taking an e-bike on a school run a cheaper, faster option.
The future of e-biking
The Bicycle Network expects bike popularity to continue rising – they offer a way to avoid car traffic on inner city roads.
The financial, congestion and environmental benefits have led advocates to call for all states to follow Tasmania, which has indicated it will bring in e-bike subsidies, similar to those for electric vehicles, as it recognises their potential to reduce emissions.
However, biking groups have a more humble request first: better investment in bike lanes.
Cycling groups criticised the investment in active transport in the recent New South Wales budget, noting it was dwarfed by the broader infrastructure spend and under Climate Council recommendations.
Even pedestrian advocacy group WalkSydney wants governments to help incentivise e-bike uptake, as it notes the priority given to cars is forcing some e-bike users on to footpaths.
Lena Huda, a WalkSydney spokesperson, said teenagers are increasingly embracing e-bikes, gaining a level of independence and safety they haven’t been able to as pedestrians on car-centric streets.
“It’s heartening to witness self-reliant young individuals who don’t rely on their parents for transportation,” she says. “However, when seeing these young e-bike riders, I’m concerned that they often end up sharing pedestrian spaces, which can pose challenges, particularly for elderly pedestrians.”
The solution, according to WalkSydney, is dedicated lanes for cars, separated with physical barriers from cycleways, which are themselves separate from footpaths.
Limiting car speeds on local streets without bike lanes to 30km/h will also make more cyclists and e-bike users comfortable.
“If more people can safely ride on the street, fewer people ride on the footpath,” Huda said.
In Sydney, Francisco said she and her partner are now considering renting out their car.
“We don’t really touch the car now,” she said. “We’re definitely saving and the e-bike is amazing for parking.”
