50cycles, a UK-based electric bike retailer, announced via a blog post what it describes as taking electric bikes to a “whole new dimension.” The company plans to launch a new set of products that rewards riders with cryptocurrencies while traveling with their bikes. TOBA bike, the new electric bike, will be available this autumn, according to the same blog post.
A Long History of Embracing Innovation
Through a blog post shared on June 18, Scott Snaith, CEO of 50cycles, commented on the company’s move, saying:
“Just like we saw the potential in electric bikes in Tokyo 15 years ago, we now see the promise and future in Blockchain technology, Cryptocurrency and product tokenization.”
In fact, 50cycles has already been a well-established player among the electric bike retailing realm since its launch in 2004 and has had a long history of integrating innovative initiatives.
According to the blog post, the company was the first retailer worldwide to commercialize an electric vehicle powered by lithium-ion battery technology. In 2004, the Panasonic WiLL electric bike (currently out of production) was first commercialized in the UK by 50cycles. It was reportedly the lightest folding electric bike and was ahead of its time when it comes to the featured li-ion battery installed on it. Back then, heavy lead-acid batteries were still the industry standard.
The latest innovation that 50cycles are about to offer is a new generation of TOBA bikes, an electric bike manufactured by the German Kalkhoff that will generate a certain amount of cryptocurrency to customers for each mile traveled.
A New Approach to Customer Reward Programs
The process of generating cryptocurrencies that 50cycles adopted is, in fact, a customer loyalty-oriented reward program, not a crypto mining process through wheel spinning. This reward program is very similar to traditional reward point systems, with a little twist. Bike riders are actually rewarded for their rides with a cryptocurrency called “LoyalCoin” (LYL). Then riders can either redeem their earned tokens for goods and services within the LoyalCoin Network, exchange them for other digital assets (Bitcoin, Litecoin, Digibytes or NEM’s XEM) or transfer them to other customers within the network. As of press time, LoyalCoin is being traded at $0.0044, according to CoinMarketCap.
Snaith explained that his company has collaborated with LoyalCoin in this regard but envisions to eventually “have their own digital coin” in the future. He added that TOBA bikes would make riders an integral part of the company’s growth as they get rewarded for simply using the electric bike they want to own.
“We want to make sure that we give our customers a life-changing experience, with a tangible product, for the commitment they make to the new TOBA tokenized electric bike.”
Each TOBA bike will grant a unique proof of ownership to its possessor through a private key, where LYL balance will be available to monitor on a mobile app called LoyalWallet. Cycling Industry News reported that “LoyalCoin” tokens would be rewarded to customers at a rate of around £20 worth for every 1,000 miles traveled.