The deal, which sees the bank’s logo displayed on thousands of bikes and pick-up points across London, will end in 2015.
The five-year deal was signed in 2010 but had been expected to run until 2018 after Johnson said in 2011 that Barclays would back the scheme for a further three years.
According to a joint statement, Barclays’ decision is part of wider review of its sponsorship strategy to assess what it backs and how it fits with its wider commercial strategy. The bank is also headline sponsor of the Premier League.
Graeme Craig, TfL’s director of commercial development, says it is looking to expand the sponsorship package to include cycle routes and its pay-as-you-go contactless system.
He says: “Barclays has not pulled out of the Cycle Hire sponsorship deal. After the current sponsorship deal with Barclays ends – in two years’ time – the cycle sponsorship portfolio will fundamentally change.
“Cycle Hire will become part of a much wider and larger cycling sponsorship offer encompassing Cycle Hire and the major new commitments made in the Mayor’s Cycling Vision – new flagship segregated routes through the heart of London, new Quietway backstreet routes, along with cycle training and potentially other forms of active travel”
He adds: “Barclays remains committed to the sponsorship agreement signed in 2010, but the bank and TfL have decided not to take up the option to extend it. Several months ago Barclays began the process of a strategic review of its sponsorship programmes and has now made a commercial decision not to continue the sponsorship.”
Barclays is thought to have agreed to pay £50m over eight years. The value of the deal has attracted criticism from opposition on the London Assembly who have accused Johnson of not securing the best value for a scheme that sees Barclays’ logo seen by millions of Londoners and tourists every day.