Kiwi designed YikeBike has finally been given the green light by the Transport Agency, to be used in New Zealand the same way as a normal bike.

It's the smallest folding fully electric bike in the world and can be carried around like a bag with a strap over the shoulder.

Chief executive Lincoln Sell says bikes are governed by outdated legislation and they've been trying for six years to have it classified.

He says the YikeBike's finally been ruled a wheeled recreational device.

"We've been in the very grey area where it was not really legal, but not really illegal, so we've been operating within that parameter for the last couple of years.

"But now with the YikeBike being legal we're able to actively market and sell them in New Zealand."

Sell says it's the smallest fully electric folding bike in the world.

It weighs around 11 kg, with a range of 14 kilometres and speed of 23 kilometres an hour.

"You use in conjunction with your public transport is the urban freedom side of it for us, where you do the park and ride then you ride the last couple of kilometres in with your YikeBike to save on your parking.

"And it's also very, very fun - that's been some of the feedback from our customers."