The Advertising Standards Authority (ASA) is probing Forest, a London-based e-bike company, over allegations of misleading advertising.
- Forest claims its services offer 10 minutes of free use daily, despite fees for unlocking and service charges.
- Confusion arises from promotional materials, which suggest free access without clearly mentioning associated fees.
- Forest asserts transparency in its pricing at signup and via its app, though complaints suggest otherwise.
- The company, formerly Human Forest, highlights its commitment to zero-emission travel and affordability despite current scrutiny.
The Advertising Standards Authority (ASA) has initiated an investigation into Forest, a firm known for providing e-bike rentals in London. These proceedings follow claims that Forest misled consumers by advertising its service as offering free access each day. However, while the first 10 minutes of a user’s journey may incur no time charge, users are still required to pay an unlock fee and a service charge of £1.90.
The promotional strategy in question includes signage on the bikes suggesting 10 minutes of free use daily. The materials display competitor Lime’s pricing for comparison, which might contribute to consumer confusion regarding the actual costs. Despite these promotional claims, Forest maintains that its pricing structure is clearly explained to its customers during the signup process, as well as through its app. This commitment to transparency is now under scrutiny.
Forest, originally launched as Human Forest in 2020, has secured over £20 million in funding, with recent support from a £17 million Series A investment in 2023. The company was founded as a cost-effective and environmentally friendly alternative to competitors like Lime, emphasising its zero-emission fleet as a unique selling point. In a recent blog post, co-founder and CEO Agustin Guilisasti highlighted the company’s efforts to provide affordable zero-emission travel, despite the competitive market environment.
Noteworthy is Forest’s claim of sacrificing £11 million to maintain its daily 10-minute free use policy since its launch. This policy is described by Guilisasti as a key element of the company’s brand identity. The firm boasts over one million registered users, underlining its popularity in the booming shared e-bike market in London. However, the current investigation may impact consumer perception if allegations are supported.
While e-bike usage in London continues to expand, the model has not been without issues, notably the cluttering of public spaces with discarded bikes. Efforts are in progress to address these challenges, such as Lime’s infrastructure improvements for designated parking areas. The outcome of this investigation could influence how e-bike services align with both consumer expectations and urban planning.
The ongoing probe into Forest highlights the crucial balance between marketing strategies and transparent consumer engagement in the competitive e-bike market.
