Some 80,000 bicycles are stolen every year in the capital Amsterdam alone, according to the national Cycling Union, which explains why most people rarely fork out more than 50 euros on a rusty third-hand bike with no lights and a creaking chain.

"People are just not used to buying a decent bike, although they use it every day," said Andrew Barneveld, one of the two founders of Pegasus.

The firm is named after the winged horse which refers to the Dutch nickname for a bicycle as the "iron steed".

In the flat country with over 16 million inhabitants where one bicycle is stolen every minute, Pegasus charges firms 349 euros ($467.2) a year per employee for hassle-free cycling.

Just like a company car, customers start off with a new bicycle and receive regular service. When the bike breaks down, Pegasus repairs it on the spot or delivers a replacement.

"I owned a 25-euro bike that was falling apart. This company bike made perfect sense. All my clients are in Amsterdam and I need to rely on my bike to get to them," said Pegasus customer Dennis Feiken, who owns computer consultancy company Fictive.

Amsterdam, with a population of over 700,000, has restricted car traffic in its narrow, canal-side streets. The abundance of bike lanes means cycling is usually the fastest way to travel.