Bike co-op eliminates pollution in local delivery

In Business, May/Jun 2000 by Block, Dave

Pedal Express uses cargo bikes to deliver mail and goods to residents and businesses in Berkeley, California.

IN THE early 1900s, cargo bikes were the main means of carrying goods locally for many grocers, plumbers, bakers and other merchants in the U.S. While they developed a strong presence in Europe and Asia that continues today, the automobile nearly phased them out in this country, where they are mostly used in warehouses and factories. Recently, however, there have been signs of a small renaissance, as nonmotorized cargo companies are making deliveries in Santa Cruz, California; Eugene, Oregon; Boulder, Colorado; and New York City. Others are in the planning stages.

One company demonstrating the viability of this alternative delivery system is Pedal Express in Berkeley, California. In 1994, a few members of Auto Free Bay Area, a bicycle advocacy group, took a trip to the Center for Appropriate Transport in Eugene, Oregon to test out some of the humanpowered vehicles it manufactures. The experience further excited them about the prospect of starting their own business, and Pedal Express soon was born. COOPERATIVE

DELIVERY BUSINESS

The cooperative business four worker-owners and several riders employed on an hourly basis. Employees generally ride 15 to 20 hours each week. Founded on the principle of zero pollution delivery, Pedal Express uses no motorized vehicles in its operations. The company even requires its riders to come to work on foot or bicycle. "We have moved our office several times, and even used bikes to do that," says Bhima Scheridan, a Pedal Express owner.

Scheridan became involved with the company two years ago. He had been working part-time for Bicycle Friendly Berkeley Coalition, which shared an office with Pedal Express. "I thought it was a great idea to combine my love of bicycling with helping to spare the air and our environment, and make some money at same time," he explains.

To become an owner, workers must complete six months and 360 hours of riding with the company, which generally coincide. Each buys a share in the business for $750, which is refundable when leaving the company. Owners comprise the board of directors for Pedal Express' corporation, Human Propelled Solutions Cooperative, Inc., running the business by informal consensus.

"The cooperative structure is a guiding principle of the business," says Scheridan. "We all believe in the idea that everyone should have equal pay for equal work. We rotate duties like billing and payroll; if one person is out sick, anything can be covered. Everyone feels more motivated when they know they're an owner of the business. It's difficult, though to find other people interested in becoming owners without making a lot of money. They really have to be committed to the business and the principles we uphold."

Both owners and workers are paid

$10/hour after spending six months with the business. Last year, the practice began of distributing three-quarters of leftover income to the owners at the end of the year. A small portion of those funds are held in a bank account to facilitate cash flow; owners receive that share if and when they leave the business. Twenty-five percent of profits are put back into the business directly. "Nobody is making a killing," Scheridan admits. "We're all pretty young and can afford to live frugally. It's an ideal job for someone just out of high school or college to gain some valuable small business skills while staying in shape and getting involved in an environmentally minded organization. It took a lot of initial time, energy and low pay to get the business to the point where it can attract people and pay a decent wage."

LOCAL SERVICE

Pedal Express delivers within Berkeley, Albany, Emeryville and North Oakland, serving 25 to 35 customers each day. It is difficult to compete with mainstream delivery and the predominant business attitude that ignores the environmental costs of motorized vehicles, but the company has been able to pull it off without government or foundation subsidies. One of the advantages it can tout is avoidance of traffic jams. "I think the Berkeley/ Oakland area is pretty receptive to our type of business," says Scheridan. "More people understand the overall benefits. We have never lost a client due to our service - nobody has tried us and decided to switch. The difficult part is convincing someone to give us a chance. One technique we use is to offer the same or lower rate as the mainstream rate to get someone started with us, then bring them up to the regular rate as we prove our reliability. Nobody has ever had a problem with that."

Pedal Express's fleet of bikes enables it to deliver a wide variety of cargo, including some large items such as a stove. The cargo bikes are based on designs used in Europe since the 1920s. Two long-haul bikes, and a smaller version called an express bike, have frontend boxes that can carry up to 200 pounds. A (three-wheeled) trihauler has a flatbed that theoretically can carry up to 800 pounds, but is used for 500 pounds at most. A third long-haul bike will be purchased soon. A variety of trailers can be attached to the bikes and saddlebags also carry items. Riders sometimes use their personal bikes for deliveries in the hills.