Wheeling And Dealing: Bike-Based Businesses Hit the Road

Even though Ann Arbor has been ranked as one of the top bike-friendly cities in the nation, The Deuce boasts a low number of commuters and bike-based businesses in comparison to others on the list. Without a push of some kind, the economic terrain for bike-based businesses looks not only like a rough ride – but a short one as well.

Not every city can be Portland, Oregon when it comes to bicycle commutes. The Census Bureau's annual American Community Survey data shows 6.4 percent of Portlanders bicycled to work in 2008. The national average for cities with a population greater than than 65,000 was 0.93 percent. Ann Arbor came in at a respectable 2.6 percent. Following in the footsteps of Portland (and runner-ups like Minneapolis and Seattle), The Deuce has been outfitting its thoroughfares to be worthy of more non-motorized methods of movement – in essence, creating "complete streets" wherever the concept works.

As the movement has gained strength, the city has witnessed more daubings of bike-lane paint, an overnight surge in Tupperware-like bike pods, and a sprouting of bike racks all over town. The changes are sparked both by pressure in the community to be more cutting edge (which inevitably translates to "greenness") and to meet rising demand as more and more locals use their bikes to get to school, the office, or the market.

A handful of intrepid locals have even moved their places of business to the backs of their bikes. They are fulfilling any number of tasks: delivering jewelry to a Kerrytown shop, fixing a cabinet in a local home, fetching organic groceries and coffee, or ferrying packages to and from the post office. But are the recent complete street adjustments enough to foster more of these two-wheeled businesses? And why would anyone bother?

Because bikes make sense. The benefits of a bike-borne citizenry are manifold, whether you speak with a city planner or a physician: less traffic, reduced pollution, less parking shortage, lower consumption of fuels, longer-lasting roads, a fitter population, and a more robust local economy as consumers generate tax from local goods and services.  

And owning a two-wheeler is certainly cheaper than owning a car, allowing business owners to work with less overhead. Delivery of goods and services via bikes also allows consumers to select service providers based on carbon emissions – not just price or availability. After all, a rider runs on food, not fossil fuels.

The model is ideal for some. Gary Hochgraf is an Ann Arbor bike-based handyman. A licensed and insured builder, Hochgraf simply tows the supplies and equipment he needs for a given job via his bike trailer.

Fixing the "little things that go wrong in the house" doesn't require that he carry a great deal with him, and when fuel became increasingly expensive "during the Bush years," he started to consider the possibility of an all-bike-all-the-time business.

"My van was getting 11 miles to the gallon, and it didn't sit well with me," he says. Having lived in Chicago, where he pedaled to work every day, it wasn't a big stretch for him to park the van, buy a bike trailer, and continue business as usual. And thus a new, environmentally friendly handyman business was born: Hochgraf went all-bike full-time in 2008, and hasn't looked back (except to check for cars.) "Bicycling is not just recreation for me" he explains. "To make it part of my work just seemed natural."

And since he's been doing it, Ann Arbor motorists' reception of cyclists has been positive -- or at least tolerant  – with a mercifully small population of exceptions. "Most of the time you can't understand what they yell because they are flying by at 60 miles per hour," he laughs. Perhaps motorists are hostile because they know what so many urban studies have shown: that bike travelers can frequently reach their intra-urban destination in far less time than a motorist can.

What can Ann Arbor do to encourage more pedaling peddlers?

"I think education is critical in generating more interest in bike-based businesses," says Hochgraf, pointing out that the simple little comic book published in the City of Ann Arbor's Waste Watcher newsletter (sample title: Mulch Ado About Nothing) every year has been an effective tool in encouraging Ann Arborites to recycle. Hochgraf suggests that a similar community-generated education tool could easily draw attention to and hike up demand for velo-based businesses.

Also on his list of actions would be an organization that would connect bike-based start-ups, similar to those formed in Portland in recent years in response to burgeoning demand.

"I would love to see more people run their business from bikes – even if only in part," he says. For instance, city inspectors, meter readers, and postal workers could certainly work from the saddle at least some of the time. He's happy that Ann Arbor's bike police have such a high profile. Hochgraf also thinks that Ann Arbor and its businesses could sweeten the deal for two-wheeled entrepreneurs with discounts at local establishments, or even tax incentives.

Such solutions might nibble at the heart of the biggest problem, thinks Hochgraf: that of awareness. Right now, no one knows this type of business even exists – so the demand is correspondingly low. Going full-time, he manages to clear about $20,000 a year, with a great deal of variation from year to year, and season to season.

Dave Askins is a part-time bike-based businessman and publisher of the Ann Arbor Chronicle. These days when he is not running his publication, he serves a handful of local companies with package transport (often to the post office) and recycling. He's got the arrangement of packages in his bike trailer down to a science. Before coming to Ann Arbor, Askins and his wife lived in several cycle-friendly cities, including China. The bicycle was his primary mode of transportation in the country (also the setting for a bike courier's story, as told in the film Beijing Bicycle).

Askins feels that more bike lanes and complete streets initiatives are beneficial, but not a panacea. "The most important thing is not how many miles of bike lanes we have or whether we have the platinum rating from Bicycle magazine as a bike friendly city," he says. "To me the most important thing is that the road, whether or not it has bicycling amenities, be in good shape – because then it is safe. If there is a lane, the motorist mindset is that you should be over there and not in the road. But if that lane is dangerous, I'm not going to ride there."

Like Hochgraf, Askins's original reason for taking his hauling business onto a bike was environmental – not financial. He even factored in the energy required to make his bike and trailer duo, almost as someone would calculate his income vs. expenses. "My trailer is made out of aluminum, which is a fairly energy intensive material to work with. I convinced myself that I would have to use the trailer for more than groceries to account for the energy invested in making that trailer."

All-year drive?

"A bike trailer will take about 300 pounds," says Askins, "But I've definitely carried more than that." And he insists that anyone can do it: no "athletic prowess" necessary. (Although it must be noted here that the hill on Liberty next to the Fleetwood Diner can be any bicyclist's nightmare.)

And the job is, oddly enough, one for all seasons. When roads get slippery, Askins simply swaps out summer tires with special metal-stud models. And Askins' bike is not just any two-wheeler. Since having an accident a few years back, he rides a hardier titanium framed model – an Airborne (sadly, another company no longer in business). He purchased the trailer at Bikes at Work, which is also a decent resource for information on bike-based businesses.

A popular misconception is that bike-based businesses are mostly courier jobs. Yet, in Ann Arbor, Askins notes, they focus on furniture moving, deliveries, recycling, and trash hauling. "There just isn't enough of the courier business to support yourself on, and if there was, you just couldn't do it as an individual."
 
Askins also points out that his strategy of retaining regulars with predictable, recurring requirements helps him spend less time and effort on each job. He has a bi-weekly contract with one local optician to remove recyclable items to the nearest center. "It's a perfect gig because I don't have to do it at a specific time of day – there is flexibility." And he points out that being a bike trailblazer means choosing wisely: "Some stuff just really isn't worth it – because there is simply too much confusion."  

If Askins is one of the veterans, then Todd Askew is the rookie. When we spoke to him he had been at his business in earnest for about six weeks, and it had yet to take off. Askew's business model is to arrange delivery service between local whole food retailers and end customers, while working in a discount as well. And his services are cheap: a typical grocery pick-up and delivery would cost under $10.00. Askew also hopes to build in efficiencies such as collecting customers' recycling while enroute. He plans to take the customer's order, collect payment, and deliver the food – all for a very affordable price. Who wouldn't want that kind of grocery service?

Askew doesn't know – because there hasn't been that much interest yet. "I think that it's a case of getting the word out to the right people and having it become more of recognized practice.  I'm very convinced that there are people who would appreciate it on a pure convenience level, and then those who would appreciate it on an environmental level."

Before he suffered a seizure, Askew drove a recycling truck in Ann Arbor. He had been interested and involved with recycling for 16 of his 17 years in the city. "This is a way for me to stay involved and active while promoting local and organic foods." His own slow climb to success notwithstanding, Askew believes that the Ann Arbor environment for bike-fostered businesses is good.

The big tour cities

Bike friendly cities like Minneapolis, famous for miles of well-maintained and interconnecting trails, have attained their reputations through dedication and a fostering of the public's desire to use more sustainable, responsible transportation. Indianapolis, also noted for its great attitudes toward and facilities for cyclists, throws a number of annual events that generate excitement and interest. Essentially, these cities work at building a brand that includes the self-identified bicyclist as a positive – even hip  – force.

We've yet to see that kind of positive identity hitched to our racks in Ann Arbor – it's still unusual to see more than a handful of coworkers outside the downtown area relying on a bike for their daily commutes. However, something is catching the nation's eye: Ann Arbor was ranked one of the country's top bike-friendly cities by the League of American Bicyclists Bicycle Friendly America project this year.

So while Ann Arbor may not have generated the level of demand that will turn a large profit for its wheel-turning entrepreneurs, we're certainly moving in the right direction. As more people realize that they can get their groceries delivered, or their sink fixed, or their recycling hauled away with a pollution-free solution that encourages local buying, demand will hopefully rise – making the road ahead considerably smoother for those bent on a bike-based biz.


Leia Menlove can write and bike but not at the same time. She is also a regular contributor to Concentrate. Her previous story was Ann Arbor's Backlot.

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All photos by Doug Coombe

Photos:

Gary Hochgraf at Sunnyside Park

Dave Askins hitches up his trailer

Todd Askew outside of People's Food Co-op

Dave Askins riding on the old west side

Todd Askew outside of People's Food Co-op

Gary Hochgraf at Sunnyside Park







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