Serco, the international provider of critical government services, has been awarded a new £220m contract by Transport for London (TfL) to continue operating the London cycle hire scheme, known as Santander Cycles.
The new contract was awarded following a competitive procurement process and will commence on 1 August 2026. The initial five-year term is valued at c.£110m, with an option for TfL to extend it for a further five years, which would bring the total contract value to c.£220m. Additionally, over the next five years, there will be opportunities to expand the scheme further through new docking stations and e-bike solutions.
Expanding Serco’s partnership with Lyft Urban Solutions, the US technology leader in ride hailing and micromobility products, a number of significant improvements for customers will be introduced, including:
The launch of a new improved customer mobile application with gamification and new payment options
A transformation of scheme infrastructure including a zero-emission operational fleet and electrified docking points which will allow TfL to increase the number of e-bikes in the Santander fleet
Provision of a roadmap for future scheme development to support more Londoners to cycle
New customer terminals at all bike stations
Serco has been involved in the London cycle hire scheme since its introduction in 2010, with responsibility for its initial design, build and operation introducing innovation to improve the operation of the scheme and the customer experience. This includes the introduction of e-bikes, AI technology to predict the movement and distribution of bikes around London and GPS technology to assist with the recovery of lost or stolen bikes.
Commenting on the award, Anthony Kirby, Serco Group Chief Executive, said:
“We are delighted to have been awarded this new contract that will see significant service improvements for TfL and the thousands of Londoners and visitors who use the bikes every day.
“I am extremely proud of the role Serco has played in the London bike scheme since 2010, making it a core part of London’s transport system and I believe this contract is a recognition of that success.
“As part of our operation, we have committed to partner with TfL to help decarbonise London and we are supporting the Mayor’s transport strategy, under which 80% of all trips in London will be made by walking, cycling and public transport by 2041.”
David Eddington, Head of Cycle Hire at TfL said:
“Our cycle hire scheme has gone from strength to strength thanks to our successful operating partnership with Serco. We look forward to continuing working with Serco to see even more innovative and creative technologies introduced ensuring that Santander Cycles can continue to be the best choice for Londoners.”
