Barclays Penalties and Cycle Hire 1

Meeting: 
MQT on 2013-05-22
Session date: 
May 22, 2013
Reference: 
2013/1402
Question By: 
John Biggs
Organisation: 
Labour Group
Asked Of: 
The Mayor
Category: 

Question

Barclays are withholding sponsorship payments for underperformance of the cycle hire scheme. What is the issue?

Answer

Answer for Barclays Penalties and Cycle Hire 1

Answer for Barclays Penalties and Cycle Hire 1

Answered By: 
The Mayor

Officers are drafting a response which will be sent shortly

Written response from the Mayor received 7 August 2013

As is common in commercial agreements of this type, the Sponsorship Agreement includes performance measures, against which Barclays is entitled to withhold a proportion of its payments. The indicators relate to the number of annual trips made, the scheme launch dates and various other scheme service level indicators. The amount withheld is only a small proportion of the amount that has been invested by Barclays in the scheme to date, and is more than offset by financial penalties imposed on the scheme operator Serco in the same period.

My Cycle Vision details a number of new measures we are taking to improve the Barclays Cycle Hire experience for our customers, and we are agreeing an improvement plan with our operator, Serco, that will ensure a better availability of Barclays Cycle Hire bikes across the scheme *