PRODUCT(S) AND/OR SERVICE(S)
Boxer Cycles fills a large gap in the worldwide family and cargo bike industry for high quality British designed and built products. We have taken the best design elements of all of the other products currently on the market and have added a level of innovation, quality and design flair that clearly sets Boxer apart.
Boxer Cycle’s Managing Director, Jeremy Davies is no stranger to cargo bikes having designed and made them for his own family initially and going on to import and locally ‘make good’ Chinese cargo bikes under the Vélo Électrique brand until the need for a British brand was identified and the Boxer concept was born in August 2014.
The term ‘Cargo Bike’ is the generic term given to bikes that are designed specifically to carry larger loads and to serve a more specific transport need than a conventional two wheeler. Whether it be doing the school run with four children or being used by a parcel delivery courier, cargo bikes are rapidly filling the relatively empty void between a traditional motor vehicle and a bicycle. Motor vehicles are increasingly becoming an encumbrance in our urban centres with high fuel costs, parking restrictions and frequent congestion and other hassles.
The National Traffic Survey (2013) estimated that around 70% of trips of 1-5 miles are made by car. The likely use of the car in these instances would be to transport children to school, people to work or shopping. The cargo bike is aimed to be a substitute to these journeys. Legally, they can go anywhere a bike can, yet are able to carry what many vehicles would carry on these short trips.
Add a powerful electric motor and large battery and the Boxer range of cargo bikes can achieve a range of up to 40 miles dependent on terrain and rider fitness with the ability to transport loads of up to 120kg.
We have found this relatively untapped market is large and is rapidly evolving, with only a handful of cargo bike manufacturers, contrasting favourably with the bicycle market where there are thousands of manufacturers vying for exposure.
We feel that the opportunity for Boxer Cycles is enormous. The advent of readily available, competitively priced and reliable electric drive systems allows these SUV’s of the cycle world to be ridden with ease even in hilly areas whereas previously the cargo bike market was largely restricted to flat countries.
One manufacturer has sold 10,000 cargo bikes in the city of Copenhagen alone with an estimated value of £20m.
Boxer Cycles has already created a distinctive brand, with our flagship Rocket, generating great interest internationally in cycling, parenting and design news as well as in social media. The Boxer Rocket has already secured a place in the Design Museum in September 2015.
SUBSTANTIAL ACCOMPLISHMENTS TO DATE
After receiving seed funding from seasoned cycle industry investors Hugh Roper and Jamie Wollen in July 2014, the business was refocused to designing three fully UK manufactured variants to meet the identified markets of family, delivery and luxury/promotional. Boxer has achieved this primary goal and is now in limited production of the Rocket, Shuttle and Cargo.
In February 2015 the Rocket prototype was exhibited at the London Bike Show where it did 130km on the test track. In March 2015, the Shuttle prototype was completed, tested and refined along with our new 12 Volt vehicle lighting system.
In April 2015 the Boxer Cargo was finished and was put through its paces at the International Cargo Bike Festival in Holland.
International press coverage of the Boxer Rocket is extensive and ongoing.
USE OF PROCEEDS
It is essential each of our products are submitted for independent testing to EU standards. This costs £3000-5000 per model.
We believe that we can achieve much of the drive into international markets using the existing staff base however we intend to build on this capacity with a dedicated sales resource hire.
We estimate that we can reduce our outsourced process costs by as much as 75% purchasing a hydraulic saw, guillotine and milling machine and by training low cost apprentices to man them and work on the assembly line.
Similarly the manufacture of more assembly jigs for each stage of production will further streamline our production process. We seek to apply for various grant schemes including MAS (Manufacturing Advisory Service) Grant-funding.
A significant proportion of the funds will be used as operating capital to manage parts purchasing to meet the expected increase in demand.
Boxer Cycles received a loan to the value of £30,000 from one of its investors and advisers. The loan is subject to an interest rate of 5% p.a. and repayment is due on 30 September 2016. The funds raised will not be applied towards the debt, it will be serviced out of trading profits.