THE BIKESHARE

PLANNING
GUIDE

Introduction

Sub

Introduction

Sub

THE BIKESHARE
PLANNING
GUIDE

Introduction

Sub

The Bike-share Planning Guide

Cover Photo: Mexico City's Ecobici has helped to increase
cycling mode share in Mexico City.
Cover Photo By: Udayalaksmanakartiyasa Halim

9 East 19th Street, 7th Floor, New York, NY, 10003

tel +1 212 629 8001
www.itdp.org

Introduction

Sub

Authors and Acknowledgements

The writing of this report was a collaborative effort across ITDP and
our partners. Contributing authors include: Aimee Gauthier, Colin
Hughes, Christopher Kost, Shanshan Li, Clarisse Linke, Stephanie
Lotshaw, Jacob Mason, Carlosfelipe Pardo, Clara Rasore, Bradley
Schroeder, and Xavier Trevio. The authors would also like to thank
Christopher Van Eyken, Jemilah Magnusson, and Gabriel Lewenstein
for their support in the creation of the guide.
ITDP is especially grateful to the following people for providing
comments on and contributions to sections of this report:
Alison Cohen, Director of Bike Share Services, Toole Design Group
(with many thanks to Shomik Mehndiratta and the World Bank for
their support of Ms. Cohens research)
Dani Simons, Director of Marketing, NYC Bike Share
Matteo Martignoni, International Human Powered Vehicle Association
and former ITDP board member
Jeff Olson, Alta Planning and Design
Chris Holben, former Project Manager for Capital Bikeshare District
Department of Transportation.

Introduction

Sub

Contents

INTRODUCTION

1.1

The Benefits of Bike-share

14

1.2

History of Bike-share

19

1.3

New Developments and Trends

25

1.4

Building Political Will

26

1.5

Elements of Bike-share

27
28

THE PLANNING PROCESS

AND FEASIBILITY STUDY

2.1

Overview of Planning Process

30

2.2

Feasibility Study

32

2.3

Bike-Share Metrics

40

2.3.1 Basic Context Data and System Metrics

2.3.2 Performance Metrics
2.4

41

Coverage Area

43

2.5

System Sizing: Three Basic

44

Planning Parameters

2.6

Financial Analysis

48

DETAILED PLANNING AND DESIGN

52

3.1

Station Location

57

3.2

Station Sizing

63

3.3

Station Type and Design

64

3.3.1 Manual vs. Automated

65

3.3.2 Modular vs. Permanent

68

3.3.3 Docking Styles

71

3.4

Information Technology Systems

and Payment Mechanisms

3.5

Bikes

76

3.6

Marketing

82

3.6.1 System Identity

83

3.6.2 Internal Marketing

83
83

BUSINESS MODEL

86

Organizational Structure

90

4.1.1 Implementing Agency

90

4.1

91

4.1.2 Operator
4.2

Asset Ownership

94

4.3

Contracting Structure

95

4.3.1 Publicly Owned and Operated

97

4.3.2 Publicly Owned and Privately Operated

97

4.3.3 Privately Owned and Operated

98

4.3.4 Types of Operators

4.4

Sub

74

3.6.3 External Marketing

4

Introduction

40

101

Managing Contracts Through Service Levels

102


5
5.1

List of Figures

FINANCIAL MODEL

106

Fig. 1 Growth of Bike-share Worldwide

Capital Costs and Financing

13

109

Fig.2

Bike-Share System Performance

39

5.1.1 Bicycles

110

Fig. 3 Bike-share market penetration and usage

43

5.1.2 Stations

110

Fig. 4 A Comparison of Systems: Bikes-per-Population

44

5.1.3 Software

111

5.1.4 Control Center, Depot, and Maintenance

112

Fig. 5 A Comparision of Systems: Operating Cost

and Redistribution Units

5.2 Operating Costs

and System Performance

48

per Bike and System Performance

114

Fig. 6 Cycling Infrastructure Implemented

5.2.1 Staffing

115

5.2.2 Redistribution

116

Fig. 7 Conceptual Organigram of Communications

5.2.3 Maintenance

117

System between User, Control Center,

5.2.4 Control and Customer Service Center

118

and Station

5.2.5 Marketing and Customer Information

119

Fig. 8 Table of Names of Bike-share Systems

83

5.2.6 Insurance (Anti-Theft, Accidents, Vandalism)

120

Fig. 9 Bike-share System Implementing Agencies

90

125

5.3.1 Government Funding

126

Fig. 10 Comparison of Strengths and Weaknesses

5.3.2 Loan Financing

126

5.3.3 Sponsorship

127

Fig. 11 Bike-share System Costs

107

5.3.4 Private Investment

127

Fig. 12 Bike-share System Annual Operating Cost

112

5.3.5 User Fees

127

5.3.6 Advertising Revenue

129

Fig. 13 Comparison of Subscription Fees

IMPLEMENTATION

132

CONCLUSION

138

APPENDIX A:

Key Resources and Publications

APPENDIX B:

5.3 Revenue Streams

Bike-share System General Information Metrics

APPENDIX C:

Bike-share System Performance Metrics

Per Trip

148
150

Sub

99

of Types of Operators

Introduction

73

and Operators

144

61

Alongside Bike-share Systems

128

section one

INTRODUCTION

Introduction

Sub

Former Mayor Adrian Fenty

takes part in the launch of
the Washington, D.C., Capital
Bikeshare system. Photo by
DDOT DC.
DDOT (CREATIVE COMMONS)

Introduction

Sub

Bike-share has taken many forms over

the course of its development, from free
bikes left for a community to use at will to
more technologically advanced and secure
systems. In every iteration, the essence of
bike-share remains simple: anyone can
pick up a bike in one place and return it to
another, making point-to-point, humanpowered transportation feasible.
Today, more than 600 cities around the
globe have their own bike-share systems,
and more programs are starting every
year. The largest systems are in China, in
cities such as Hangzhou and Shanghai.
In Paris, London, and Washington, D.C.,
highly successful systems have helped to
promote cycling as a viable and valued
transport option.
Each city has made bike-share its own,
adapting it to the local context, including
the citys density, topography, weather,
infrastructure, and culture. Although
other cities examples can serve as
useful guides, there is no single model
of bike-share.

Introduction

10

Vlib, in Paris, France,

is one of the largest and
most successful public
bike-share systems in
the world.
LUC NADAL

Introduction

11

However, many of the most successful

systems share certain common features:
A dense network of stations across the coverage

area, with an average spacing of 300 meters between

stations
Comfortable, commuter-style bicycles with specially

designed parts and sizes that discourage theft and

resale
A fully automated locking system that allows users to

check bicycles easily in or out of bike-share stations

A wireless tracking system, such as radio-frequency

identification devices (RFIDs), that locates where a

bicycle is picked up and returned and identifies the
user
Real-time monitoring of station occupancy rates

through wireless communications, such as general

packet radio service (GPRS)
Real-time user information through various

platforms, including the web, mobile phones and/or

on-site terminals
Pricing structures that incentivize short trips helping

to maximize the number of trips per bicycle per day

Introduction

12

Fig. 1: Growth of Bike-share Worldwide (January 2000July 2013)

When the first bike-share
opened in the 1960s, bikeshare growth worldwide
was relatively modest.
It wasnt until after the
turn of the century and
the launch of Velov in
Lyon, France, in 2005 and
Vlib in Paris in 2007
that growth in bike-share
exploded.

700,000
600,000
500,000
400,000
300,000

CASA BIKE SHARE MAP BY OLIVER

O'BRIEN, SYSTEM WEBSITES,
PUBLICBIKE.NET

200,000

20
13

20
12

20
11

20
10

09
20

08
20

07
20

06
20

05
20

04
20

03
20

02
20

01
20

20

Year

00

100,000

This guide is meant to bridge the divide

between developing and developed
countries experiences with bike-share.
It should be useful in helping to plan and
implement a bike-share system regardless
of the location, size, or density of your city.

Introduction

13

1.1 The Benefits of Bike-share

The reasons for implementing a bike-share program are often centered on goals of increasing
cycling, reducing congestion, improving air quality, and offering residents an active mobility
option. Bike-share has two key advantages when compared to other transportation projects:
implementation costs are comparatively low and the timeline is short. It is possible to plan and
implement a system in one mayoral term (i.e., two to four years), which means that benefits to the
public accrue more immediately than in most transportation projects.

Bike-share has become

a significant trend
worldwide, including in
Seville, Spain.
CARLOSFELIPE PARDO

Bike-share systems can benefit a city in a

number of ways:

Reduce congestion and improve air quality

Bike-share offers an alternative means of
transport for short trips that might otherwise
have been made by car. As of November
2011, Washington, D.C.s 22,000 bike-share
members had reduced the number of miles
driven per year by nearly 4.4 million (LDA
Consulting 2012).
Increase accessibility
Implementing a bike-share system gives
local users greater access to places that are
beyond their reach on foot.
Increase the reach of transit
Bike-share fills that critical gap between the
station or stop and the final destination for
the passenger. Since cycling is more efficient
than walking, bike-share enhances mobility
and is much less expensive to the city than
extending public transport service.

Introduction

Improve the image of cycling

Bike-share systems project a hip, modern
image and can help transform the cycling
culture in a city.

Provide complementary services to public

transport
Bike-share offers an alternative for short trips
that people would have otherwise made on
transit.

Improve the health of the residents

Bike-share offers an active transport choice,
providing both physical and mental health
benefits. Studies have shown that spending
twenty minutes every day on a bike has a
significant positive impact on mental health
(Obis 2011, p. 41).

14

top
Washington, D.C.
designed its Capital
Bikeshare system to be
easily used by tourists
seeing the sites as well as
everyday use by residents.
KEVIN KOVALESKI, DDOT DC
(CREATIVE COMMONS)

bottom left
Lyons Velov provides
easy transportation within
the city for students,
residents and tourists.
KARL FJELLSTROM

bottom right
Buenos Aires, Argentina,
has implemented a bikeshare system that has
stations near mass transit
lines, increasing the
coverage of both systems.
CARLOSFELIPE PARDO

Introduction

15

Attract new cyclists

Bike-share offers an easy way into cycling
for people who may have been prevented
from cycling by a lack of access to a bike or
bike parking. Lyon, France, saw a 44 percent
increase in cycling within the first year of
opening Velov, its bike-share system. In a
survey of members of Capital Bikeshare
Washington, D.C.s bike-share system80
percent of respondents said that they cycle
more often now than they did before joining
the program, and 70 percent said that Capital
Bikeshare had been important in helping or
encouraging them to ride more often (LDA
Consulting 2012).

Improve a citys image and branding

Cycling is a sustainable transportation
option, and a city that implements a bikeshare system may strengthen its image as
a green or innovative city. In 2007, Paris
Vlib won the British Guild of Travel Writers
Best Worldwide Tourism project.

Generate investment in local industry

Bike-share has the potential to spur
development of new products and services
through demand for hardware and software,
as well as provision of the operations.

Bike-share can also attract existing riders

through its convenience and practicality. ITDP
China conducted a survey of bike-share users
in Guangzhou, China, that found that sixteen
percent of the users were previously private
bicycle users. By broadening the bicycle
user base and raising the profile of cycling
in a city, bike-share can build a constituency
for improved bicycle infrastructure, which
benefits all cyclists, rich and poor alike. Cities
that have implemented bike-share systems
have found that the benefits are felt by a
wide variety of usersspanning generations,
classes, ethnicities, and gendersin a variety
of seasons (New York City Department of City
Planning 2009).

Introduction

16

Bike-share systems like

the one in Guangzhou,
China are very popular,
even among international
visitors.
KARL FJELLSTROM

Introduction

17

CARLOSFELIPE PARDO

How Vlib Came to Be

In 2001, newly-elected mayor Bertrand Delano set out to transform
Paris into more sustainable city. Under his low-carbon transport plan, his
administration added 271 kilometers of bike lanes. However, the lanes were
not well used, and the city determined that the biggest deterrent was the
lack of bicycle parkingmost apartments were too small to store a bicycle,
and people did not feel safe parking their bikes on the street overnight.
Parking was also a problem once cyclists reached their destinations,
where, again, there were often no safe or legal ways to park their bikes. In
response, the city implemented a bike-share system, which addressed the
need for bike parking and increased cycling (Spitz 2008).

Sub

1.2 History of Bike-Share

Bike-share has evolved significantly since its inception in 1965, when
Amsterdam city councilman Luud Schimmelpennink proposed the worlds
first public bike-share system as a way to reduce automobile traffic in
the city center. He proposed that 20,000 bicycles be painted white and
distributed for pick-up and drop-off anywhere in the city center, free of
charge. When the city council rejected the proposal, Schimmelpenninks
supporters distributed fifty donated white bikes for free use around the
town. The police, however, impounded the bikes, claiming that unlocked
bikes incited theft (Schimmelpennink 2012). Though a large-scale free
bike program such as the one Schimmelpennink originally imagined has
never been implemented, smaller-scale free bike systems in Madison,
Wisconsin, and Portland, Oregon, have been implemented.
The next attempt at a bike-share system occurred in La Rochelle,
France, in 1993, which offered a free, but more regulated, program that
allowed the public to check out bicycles for two hours. Cambridge,
England, implemented a similar system in 1993. This type of free bicycle
rental system, also known as a bicycle library, reduced problems with
theft and vandalism, since users were required to show identification
and leave a deposit in order to use the bicycles. However, these bicycle
libraries also required the user to return the bike to same place from
which it had been checked out, limiting the usefulness of the system
as a point-to-point transit option.

The Bike-Share Lexicon

Bike-share systems go by a variety of names around the world: bicycle sharing or simply bikeshare in North America, cycle hire in the United Kingdom, cycle sharing in South Asia and
public bike in China. In this report, we will use the term bike-share. Other key bike-share
definitions used throughout the guide include:

Docking spaces are the places at the station where

bikes are parked and locked.

Stations are composed of docking spaces, terminals,

and bicycles. Bikes are parked there for users to check
out, and spaces should be available for users to return
the bikes. Users can get information and pay for using
the system. Stations can be manual or automated, or
some variation in between. They can also be modular in
design or fixed and permanent (i.e. built into the street).

Introduction

Sub

Terminals are places where users can get information

about the system and check in and out bicycles. They
can be self-service dynamic interfaces for the customer
or static information systems that tell users how to
check in or out a bike. They can serve as the nexus of
communication between the bikes, the docking spaces,
and the control center, as well as be the place for
payment. Terminals usually serve the function of helping
users locate a station on the streeta visual totem that
is consistently branded. Terminals are also known as
kiosks, but in this guide we refer to them
as terminals.

19

Luud Schimmelpennink
helped to introduce
the white bike in the
Netherlands in 1968.
CITYMART.COM

To address these issues, Copenhagen

introduced a second generation of bike-share,
called ByCylken, in 1991. To prevent theft and
vandalism, custom-built, heavy-duty bikes
were kept chained to special bicycle parking
racks with coin-operated locks. Although
more secure than their predecessors, these
systems remained vulnerable because users
were not registered, and thus could not be held
accountable for vandalized or stolen bikes.
The third generation of bike-share sought
to improve security, accountability, monitoring
capacity, and billing. These systems have a
more extensive method for registering users,
and they monitor use as part of a complete
technology-enhanced operating plan. The bikeshare system in Rennes, France, was the first
to use smart-card technology in 1998. In 2001,
Lyons Velov system opened, and it was the
basis for the Vlib system in Paris. Velov and
Vlib have become the prototypes for thirdgeneration systems.
The critical attributes of the third generation
of smart bike-share networks are the
technological advances that have increased
accountability through identification devices
and allowed for real-time monitoring of station

Introduction

capacity and bicycle users. All users are

required to provide proof of identity, either
when registering or when checking bikes out at
the station kiosk. Most systems in Europe and
North America rely primarily on credit cards for
payment and as a security mechanism, while
Asian systems rely on national identification
documents. If the user fails to return a bicycle,
a fee can be charged to the users credit card,
or the users account may be blocked to prevent
him or her from checking out other bicycles.
Users of Rio de Janeiros bike-share system,
BikeRio, must pre-register online or through
a mobile phone application. To borrow a
bicycle, the registered user accesses BikeRio
through the application or via phone, and the
bicycle is released from the docking station.
In Washington, D.C., and Mexico City, users
preregister and are mailed a key fob that
contains a radio-frequency ID card that allows
the user to unlock a bike at a station simply
by inserting the fob into the docking station.
In countries where credit systems are not as
established, there are other ways to ensure
financial accountability. For example, very few
public bike-share systems in China use creditcard registration. In most Chinese systems,

20

top
Copenhagens ByCyklen
is an example of a secondgeneration bike-share
program.
ELSAMU (CREATIVE COMMONS)

bottom
The system for the
Providencia neighborhood
in Santiago, Chile,
is complemented by
segregated bike lanes.
CARLOSFELIPE PARDO

Introduction

21

users must either put down a deposit on a

smart card or provide a local identification
card in order to check out a bike. If the bike
is not returned, the user loses the deposit,
or he or she can be found and fined through
the ID card. In Hangzhou, users are required
to keep deposits on their smart-card accounts,
and if they fail to return a bicycle, they forfeit
the deposit.

Introduction

22

Bike share has become a

significant
trend ininvarious
The
Vlib system
cities is
inthe
theprototypical
developed
Paris
and developing
world,
example
of a thirdincluding Seville,
Spain.
generation
bike-share
Photo by Carlosfelipe
system.
KARL
FJELLSTRO
Pardo.

Introduction

23

Introduction

24

1.3 New Developments and Trends

left
Stuttgart, Germany,
implemented a bike-share
system that includes
electric bikes with
chargers at stations and
GPS location devices.
CARLOSFELIPE PARDO

opposite
Montreals Bixi was the
first bike-share system
to use solar-powered,
modular stations.
MAX HEPP BUCHANAN

Many new systems incorporate innovative characteristics that some believe represent a fourth
generation of bike-share, including:

Universal cards:
Bikes can be integrated into other public
transport systems through the use of a
rechargeable smart card that can cover a
range of payments and trips. Many cities in
China already have this kind of integration.
In Hangzhou and Guangzhou, for example,
the card used for the local bike-share system
can also be used on the bus, bus rapid transit
(BRT), and metro systems. The use of these
universal cards is now spreading to other
countries and cities.
Modular, movable stations:
These stations do not require excavation and
trenching, which reduces implementation
time and costs. Also, because the stations are
easily movable, the system can be optimized
once demand patterns reveal themselves
through usage. They can also be removed
during winter months.

Introduction

Solar cells:
Solar cells can power stations and wireless
communications. Solar cells make modular
stations feasible, as they eliminate the
need for excavation to connect the station
to underground power lines. The systems in
Boston, Washington, D.C., London, Montreal,
and Rio de Janeiro have stations that are
powered entirely by solar energy and are
completely wireless.

The future of bike-share will probably include

offering cargo bikes for large purchases,
electric-assist bikes, and bikes for children.

25

1.4 Building Political Will

Successful implementation of a bike-share system requires strong political support to ensure
funding, land use rights, and coordination between various city agencies. Involving more than one
political party is critical to ensuring support for bike-share over several years and multiple election
cycles.
Building political will begins with educating political leaders on the benefits of bike-share. This
can include presentations on and site visits to successful projects. Persuading decision-makers
to travel to other cities to actually see and use successful bike-share programs, and to speak to
other implementers, builds the necessary political will to make bike-share a reality. These decisionmakers become champions for the new system in their own cities.
London Mayor Boris Johnsons strong support for the citys bike-share system earned that system
the nickname Boris Bikes. His determination to increase the use of bikes in London by improving
infrastructure and setting bike-share as a top priority created the context for a successful and
innovative system in one of the worlds most famous cities. While the London system is overseen
by the citys transport department, Transport for London, and operated by Serco under a six-year
contract, the support of the mayors office was the key to the systems success. Johnson personally
promoted the bike-share system to residents of the boroughs, whose support and cooperation was
necessary to the success of the project (Mulholland 2008).
New York City Department
of Transportation
Commissioner Janette
Sadik-Khan and other city
officials test bicycles in for
New York Citys bike-share
program.
NYC DOT (CREATIVE COMMONS)

Introduction

26

1.5 Elements of Bike-share

Prior to entering the planning phase, the agency implementing the bikeshare system must have a basic knowledge of the essential elements
of bike-share so that it can space stations appropriately and create a
business model and a financial model. These elements include bikes,
stations, software and other technology needs, as well as personnel/
staffing objectives. These elements will impact both the business and
financial models.

Introduction

Many bike-share systems

are found in areas with
lots of activity, making
it convenient for people
to pick up and drop off
a bike, like in Paris' city
center.
LUC NADAL

27

section two

THE PLANNING
PROCESS AND
FEASIBILITY
STUDY

Mexico City introduced

segregated bike lanes
along Reforma Avenue,
which are frequently used
by Ecobici users.
BERNARDO BARANDA

Introduction

Sub

28

Introduction

Sub

29

2.1 Overview of
Planning Process
The process of planning a bike-share system can be broken down into
three steps:
1. Conducting a feasibility study
A high level analysis of the possibilty of bike-share, defining key
parameters for planning and developing an initial institutional and
financial analysis, the foundation needed to take the next steps (see
the rest of chapter 2)
2. Detailed planning and design
This step defines the exact locations of the stations, the size of the
stations, and the type of hardware and software needed (see chapter 3)
3. Creating business and financial plans
This step defines the institutional and revenue models, including
contracting (see chapters 4 and 5)
The time frame for each step is based on the political will and resources
behind the project. Completing the feasibility study and detailed planning
and design phases could take three months to a year. Tendering and
contracting operations, which are dictated by the citys procurement
rules, could take as little as a year in the most organized and efficient
of city governments, but it is likely that more time will be required.
Regardless, the time frame for planning and implementation is still far
shorter than that of most transportation projects and can be realized
within a couple of years or within a mayoral term. For example, Mexico
Citys first phase took one year to plan and six months to implement.
New York City first considered the feasibility of bike-share in 2007 but
decided that the Vlib models requirement for permanent stations would
be impractical in the citys environment. When Bixi, the bike-share system
in Montreal, developed modular stations that do not require excavation
and trenching, New York City reassessed, releasing its feasibility report
in 2009. It released the tender in 2010 and decided on an operator in
2011, awarding the contract in September of that year (New York City
Department of City Planning 2009). New Yorks bike-share system, Citi
Bike, opened in May 2013.
The rest of this guide looks at the planning process, with a brief
conclusion on implementation.

The Planning Process and Feasibility Study

30

New York City installed

its modular bike-share
stations fairly quickly
over the course of
one month.
LUC NADAL

The Planning Process and Feasibility Study

31

2.2 Feasibility Study

The feasibility study establishes the critical parameters that will guide the planning and design
processspecifically the coverage area and size of the systemand then analyzes whether
the proposal will be financially feasible and under what conditions. The feasibility study should
recommend investment and revenue sources, a contracting model, and an organizational structure,
as the agency or department conducting the feasibility study may or may not be the implementing
agency. Finally, the feasibility study will also need to review the local context and identify any
specific local obstacles to implementation, including weather, cycling infrastructure, culture, and
political and legal realities. Much of the feasibility study can be done by drawing on other systems
experiences and adapting them to the local context.
The first step is to outline the citys objectives for a bike-share system. Bike-share systems are
often implemented as part of a general sustainable transport initiative to reduce pollution and
improve mobility options. Strategic objectives for bike-share may include solving the last mile
problem for transit passengers who still need to travel from the station to their destination (as
in the San Francisco Bay Area in California), avoiding capital investments in order to increase the
capacity of overcrowded mass transit (as in Guangzhou, China), meeting targeted city modal splits
or pollution targets (as in Paris), developing tourism (as in Hangzhou, China, and Paris), and even
generating employment (as in Hangzhou). These locally defined objectives will inform the rest of
the feasibility study.

The Planning Process and Feasibility Study

Guangzhou, Chinas, bikeshare stations are near

BRT stations, benefitting
users of both systems.
KARL FJELLSTROM

32

After defining the objectives of the bike-share system, the feasibility study should include the
following three main components:
1. Demand analysis
The demand analysis identifies the potential number of
system users and forms the basis for all other analysis. It
requires the following steps.
Define the proposed coverage area. Usually, cities

choose as a first phase the areas where there will be

the most demand for bike-share. Residential population
density is often used as a proxy to identify those places
where there will be greater demand. (See section 2.3.3
for more detail about the coverage area.)

2. High-level financial feasibility analysis

Based on the demand analysis and size of the system,
preliminary numbers can be used to estimate how much
the system will cost, including both capital costs and
operational costs. This is a high-level estimation used to
guide decisions, not a detailed budget, which should be
done later. This analysis includes the following steps:
Propose options for station type, bicycles, and

technology to create a capital cost estimate.

Estimate operational costs based on the size of

Define targets for key performance metrics. This should

include both the two key performance metrics discussed

in section 2.3.1 and the indicators for evaluating how
well the system is meeting its objectives in section 2.3.2.
Create a demand profile. Review existing demand

and conditions for cycling, taking into account the

population of the coverage area, the number of
commuters, current modal split, existing transit, bicycle
and pedestrian networks, and existing major attractions
that will draw people to the area. Sometimes it is useful
to create profiles of potential bike-share users to get
a sense of who will use it and at what scale, but it has
generally been found that people of all incomes and
backgrounds use bike-share.

the system. This should include maintenance and

redistribution, as well as replacement costs for bikes.
Propose financing options to identify the most

appropriate combination of user-generated revenues

(per-use and membership fees), government funds,
corporate sponsorship, street advertising contracts, etc.
Analyze estimated costs against financing options to

ensure that the proposal is financially feasible.

Recommend a business model that establishes an

organizational structure and contracting model.

Create estimations of demand. One way to do this is

to create a Price-Elasticity of Demand (PED) analysis

according to various customer types. Another, less
rigorous, way is to create an estimation of demand
based on a percentage of the population, known as the
uptake rate. After Vlib opened, Paris saw a 6 percent
uptake, meaning that 6 percent of the population
used the system (Nadal 2007). New York City ran three
scenarios: a 3 percent uptake by the existing population,
a 6 percent uptake and a 9 percent uptake. The city
ultimately used 6 percent for financial estimations (New
York City Department of City Planning 2009).
Size the system by defining station density, bike density,

and bikes per station. These basic planning parameters

are discussed further in section 2.3.4.

The Planning Process and Feasibility Study

33

3. Analysis of risks and barriers

Identifying possible barriers and risks will
help planners mitigate those challenges as
they go into detailed planning and design.
This analysis includes the following steps:
Review possible barriers to implementation

and propose mitigation measures. Such

barriers may include access to credit cards
by the users, advertisement regulations
and existing advertising contracts, helmet
requirements, traffic laws, safety concerns,
institutional constraints, etc.
Identify risks to project implementation and

propose mitigation measures. These risks

may include institutional infighting and
lack of cooperation, NIMBY-ism and protest
by the community, and the absence of a
political champion for the system.
These three components are an iterative
process whereby decisions about the coverage
area and system size may change based on the
financial feasibility. This study becomes the
basis for the next steps: detailed planning and
design, the creation of business and financial
models, and tendering and contracting. With
the guidelines determined in the feasibility
study, the government organizing team can
move into the planning phase.

New York Citys Feasibility Study

New York Citys feasibility study determined
that the first phase would focus on the
citys medium- to high-density areas, like
Herald Square, Midtown, lower Manhattan
and parts of Brooklyn. The recommended
business model was to contract operations
to a private company, with the assets owned
by the city and operational costs covered by
membership fees and sponsorship.

The Planning Process and Feasibility Study

NYCSTREETS (CREATIVE COMMONS)

34

The Planning Process and Feasibility Study

35

Most bike-share stations are rolled out in

phases, with the most successful systems, like
Paris, Lyon, and Hangzhou, beginning with a
robust citywide network of bike-share stations.
The feasibility study can help determine a
phased implementation plan. This can be
especially useful if the eventual goal is to create
a system on a large regional scale that might
be challenging to implement all at once. Initial
phases should focus on covering as much of
the city as possible, focusing on areas that are
the densest in terms of demand, have strong
bicycle infrastructure, and would have good
public support for bike-share. Areas that are
financially more difficult or constrained by
infrastructure challenges should be prioritized
for future phases.
Generally, the first phase needs to be both
large enough to connect meaningful origins
and destinations and dense enough to ensure
convenience and reliability for the user. Smaller
pilots are not ideal for bike-share, as that scale
can limit the usability of the system due to poor
coverage or bike availability, which ultimately
damages the public perception of bike-share as
a viable mode of transport. Smaller pilots have
often not been successful, as was the case with

The Planning Process and Feasibility Study

Washington, D.C.s original Smartbike system

and Rio de Janeiros original Samba bike-share.
Both cities went on to relaunch their bikeshares based on lessons learned from those
experiences.
Paris launched Vlib in 2007 with 7,000
bikes at 750 stations across the city. The
system immediately began attracting tens of
thousands of riders each day and averaged
75,000 trips per day in its first year, with peak
days exceeding well over 100,000 riders (New
York City Department of City Planning 2009).
The successful launch also generated public
support for the system and brought the city
international acclaim. The following year, Vlib
grew to 16,000 bicycles in 1,200 stations in
the city, and it is now planning to have more
than 20,000 bicycles at over 1,450 stations
both within Paris and within twenty-nine other
communities on the periphery of the city.

Paris rolled-out Vlib to

high demand areas, like
above in Les Halles, where
there were more people
to use the system, as
evidenced by this empty
station.
KARL FJELLSTROM

36

Why Did Washington, D.C.

Relaunch Its Bike-share?
The Smartbike system, launched in August
2008, was the countrys first fully automated
bike-share system. In this public-private
partnership between Clear Channel Outdoor
and the District of Columbia Department
of Transport, Clear Channel received
outdoor advertising rights to the citys bus
shelters, while the District received all user
subscriptions fees to operate the system.
The city defined the system as a pilot project,
with ten stations and 120 bikes. Due to the
small number of bikes and stations, as well as the great distances between
stations and limited operating hours, the program was poorly utilized and
thus largely unsuccessful (Silverman 2008 and DePillis 2010).
The District of Columbia chose to finish the bike-share portion of its
contract with Clear Channel and then totally revamp the system.
In September 2010, Smartbike was replaced by Capital Bikeshare, a fully
automated system with 1,100 bicycles and 116 stations, but now available
twenty-four hours a day, seven days a week. The new system is operated
by Alta Bicycle Share, a company that specializes in operating bike-share
systems and has experience in other leading cities around the world.

Washington, D.C.s first

bike-share system, called
Smartbike (above), and
its current system, called
Capital Bikeshare (left).
CARLOSFELIPE PARDO

Bike-Share Essentials
In order for a bike-share system to
be well-used and efficient, it must be
properly planned and designed. Based
on the performance of existing systems
across the globe, ITDP has developed the
following planning and design guidelines
that are characteristic of the best-used
and most efficient systems. More detail
about each recommendation can be
found in the guide.

PLANNING GUIDELINES
Minimum System Coverage Area: 10 km2
Station Density: 1016 stations per km2
Bikes/Resident: 1030 bikes for every 1,000 residents

(within coverage area)

Docks per Bike Ratio: 22.5 docking spaces

for every bike

The Planning Process and Feasibility Study

38

BIKE GUIDELINES
Durable
Attractive
Utilitarian

STATION GUIDELINES
Theft-proof locking mechanisms or security system
Clear signage and use instructions
Quick and easy electronic bicycle check-in/check-out

system

PERFORMANCE METRICS
System Efficiency: Average number of daily uses: Four

to eight daily uses per bike

Market Penetration: Average daily trips per resident:

one daily trip per 20 to 40 residents

The Planning Process and Feasibility Study

39

2.3 Bike-Share Metrics

The planning of a bike-share system is based on a simple analysis of readily available data. This
allows planners to design a system that is the right size and scale to meet their performance and
financial goals for the system.

2.3.1 Basic Context Data and System Metrics

In order to complete a feasibility study, a range of local data must be collected and analyzed.
This data will help to determine the appropriate size and scale of the bike-share system to best
meet the goals for the system. The following two data sets are critical to establishing the basic
framework for the feasibility studydefining the physical size of the area and the the potential
size of the users:

System Coverage Area:

Defined as the contiguous area, in square
kilometers, in which bike-share stations are
located. The coverage area includes a 500
meter radius around each station located on
the edge of the area.

Population in System Coverage Area:

Defined as the number of people that live in
the system coverage area. This figure can be
quickly obtained by multiplying the system
coverage area by the population density
(i.e., the number of residents per kilometer
in that area). The more specific the data is
to the coverage area, the more accurate the
planning will be.

For comparisons in this guide, the average population density of the entire city was applied to
the system coverage area to find the population in the system coverage area. This likely underestimates the population in many coverage areas because bike-share systems are generally
implemented in areas with higher-than-average population density and high concentrations of
workers commuting in.
At its most basic level, a bike-share system is comprised of a certain number of bikes, docks,
and stations, which will serve a given market. These basic data points are described below:

Number of bikes
Defined as the number of bikes in active
circulation in a system (in a dock or in use).
This is not the total number of bikes owned
by a system (which may include bikes that are
being repaired or are part of the contingency
fleet), which is less relevant to measuring the
performance of the system.

Number of docks
Defined as the number of functional parking
locations where a single bike can be checked
in or out. Some systems allow bikes to be
checked in and out without the use of docks,
which may skew comparisons.

Number of stations
Defined as the number of specific locations
where a bike can be checked in or out. Each
station consists of multiple docks.

For planning purposes, two basic types of users are defined. This distinction is used to understand
usage and define fees. These are:

Casual users
Defined as users who pay for subscriptions of
seven days or less. Casual members typically
can purchase these short-term subscriptions
the day of use.

The Planning Process and Feasibility Study

Long-term users
Defined as users who subscribe for a
month or longer. The registration process
for annual members typically takes a day
or more and often includes a registration
token, such as a key fob or a membership
card, to provide access to the system.
40

Fig. 2: Bike-Share System Performance:

Trips per Bike vs Trips per 1,000 Residents
70

Moderate Performance:
High market penetration but
low infrastructure usage

London

(187)

(114)

Mexico City

Montreal

High Performance:
High market penetration and
high infrastructure usage
Barcelona

Lyon

Trips per 1,000 Residents

(Measuring Market Penetration)

Madison

50
NYC
Denver

Rio de Janeiro
Paris

30

DC

20

Chicago

Boston

Boulder
Low Performance:
Low market penetration and
Minneapolis
low infrastructure usage

Moderate Performance:
High infrastructure usage
but low market penetration

San Antonio

Trips per Bike (Measuring Infrastructure Usage)

2.3.2 Performance Metrics

An efficient, reliable and cost-effective system will maximize two critical performance metrics:

Average number of daily uses per public bike

Ideally, four to eight daily uses per bike.
Turnover is critical to a successful bikeshare system, and this is a measure of the
efficiency of the system. Fewer than four
daily uses per bike can result in a very low
cost-benefit ratio, while more than eight
daily uses can begin to limit bike availability,
especially during peak hours. In 2010, Paris
averaged more than four daily uses per bike
for the whole year, including winter, when the
usage is lower.

Average daily trips per resident

Ideally one daily trip per twenty to forty
residents. This is a metric of market
penetration. High quantity of uses among
the population of the coverage area is key to
achieving the primary objectives of a bikeshare system, including increased bicycle
mode share, decreased congestion of vehicle
and transit networks, and promotion of safe,
clean, healthy modes of transport. Lyon, for
example, has one daily trip per twenty-five
residents.

These two metrics have an inverse relationship. Many systems have a high average daily use
per bike because they actually have too few bicycles in circulation, and this means that market
penetration (expressed here as average daily trips per resident) will be very low. Other systems
may have high market penetration, but very few uses per bike, indicating inefficient usage of
infrastructure and low cost-benefit, likely due to a surplus of bikes. The planning of a bike-share
system must be carefully calibrated to ensure performance is within the optimum range for
both metrics.

The Planning Process and Feasibility Study

41

(11)

A system that has a very high number of daily

uses per bike may have too few bikes to meet
demand. This results in low market penetration,
and a smaller impact on the citys objectives.
The early years of the Barcelona system serve
as a prime example, as there were, on average,
nearly ten daily uses per bike, but the number
of people using the system relative to the
citys population was very low. According to
Sertel, the operator of Rio de Janeiros bikeshare system, BikeRio has about ten to twelve
daily uses per bike in 2013. This may be due in
part because of the limited numbers of bikes
available. If bikes are not readily available,
the system will not be viewed as a reliable
mode that could replace or compete with other
options, such as transit or private cars.
Conversely, a system with too many bikes
and a relatively low number of users could
result in the perception that bike-share is an
investment with a low return. An indicator of
such a situation is the average number of trips
per bike. Bike-share systems should strive
to maintain an average of four daily uses per
bike to maximize the public cost-benefit of the
system.

The figure on the previous page shows how

sixteen bike-share systems perform based
on these two critical performance measures.
The systems in the green area of the chart
have the highest overall performance, as
they are achieving optimum levels of both
market penetration (expressed as daily trips
per resident) and efficiency of the system (as
expressed by daily uses per bike). Systems that
fall in the orange zone are achieving high usage
per bike, which reflects good cost-benefit of
the system; however, they are not achieving a
high market penetration, which indicates that
these systems may warrant expansion. Systems
in the yellow zone are achieving high market
penetration and usage among residents, but
have low usage per bike, which indicates that
that they may have a surplus of bicycles. Bikeshare systems in the red zone are not achieving
good usage levels on a per capita or per bike
basis, meaning they most likely need to expand
their size and adjust other factors such as
station placement or pricing.

What to Do if a System
Is Too Popular?
Barcelonas Bicing was more popular
than anticipated. Within its first two
months, 30,000 people signed up for
membershipsnumber that had been
forecast for the entire year. While the
city originally wanted to include tourists
as part of the membership base, that
option was removed to address the high
demand and to avoid competition with
the existing bike-rental companies that
cater to tourists. However, short-term
memberships, which tourists typically buy,
can be a significant revenue generator,
since cities usually give discounts for
annual memberships. Now, with Barcelona
facing a financial crisis, city services are
being cut across the board. As a result, the
city is proposing to increase Bicing fees by
116 percent, which has sparked a public
outcry (Baquero 2012).

The Planning Process and Feasibility Study

MICHAEL KODRANSKY

42

Every docking
station in 19 of
the world's bike
sharing programs;
each city mapped
at the same scale.
DAVID YANOFSKY, QUARTZ, QZ.COM

2.4 Coverage Area

When beginning to plan a system, identifying a coverage area (the physical area that the bikeshare system will cover) and saturating it with the appropriate number of stations are the most
critical factors in creating a successful system with high ridership. The coverage area must be
large enough to contain a significant set of users origins and destinations. If it is too small to
connect meaningfully to other places, the system will have a lower chance of success because its
convenience will be compromised. While many people attribute Melbournes low ridership to the
citys mandatory helmet law (Preiss 2011), the citys bike-share operator, Alta, attributes it to the
small coverage area, which was the smallest of the three options recommended in the feasibility
study (Alta Planning 2012).
Dense, mixed-use areas with a high trip-generation capacity (generally city centers) are likely to
see the most demand for bike-share, as they will be both the origin and destination points of many
trips and are usually the best places to start. When defining the coverage area, the city will have
to balance demand with costs. The identification of the appropriate coverage area is best carried
out by qualified planning institutions through surveying and statistical data analysis.The coverage
area must be determined in tandem with the system size to ensure that the system is both large
and dense enough to encourage high ridership due to its convenience, reliability and ubiquity.

The Planning Process and Feasibility Study

43

2.5 System Sizing:

Three Basic Planning Parameters
The system size is determined by the number of bikes and number of stations the proposed
system should have. From a user perspective, density of stations and availability both of bikes
and of spaces to park the bikes will be the main considerations. A good station density within the
coverage area ensures that no matter where a user is, there will be a station within a convenient
walking distance to both the origin and destination of his or her trip. A large area of dense stations
creates a network that users can learn to count on for all their trips in the city. The farther apart the
stations, the less convenient the system is for the user. Lack of bikes or docking spaces for bikes
results in frustrated users.
The following three parameters will help guide planning to ensure that the designed system will
create a network that users can rely on and trust. They are meant to be guidelines, or averages, for
planning; a more nuanced look at station spacing and location is described in the detailed planning
and design section.
1. Station Density Ratio: the average number of stations
within a given area
To create a reliable network, cities should pursue a more
or less uniform station density throughout the coverage
area to ensure users can bike and park anywhere in that
area easily and conveniently. This parameter ideally scales
the spacing of stations so they are within a reasonable
walking distance within the coverage area. An ideal
station density is approximately ten to sixteen stations per
square kilometer. As the figure on the next page shows,
increasing station density will yield increased market
penetration (defined as trips per resident). Paris used
one station every 300 meters as a guideline for the first
phase of its bike-share system, as did London and New
York. Phase one in Mexico City used one station every 250
meters. While this serves as a planning guideline for the
detailed design, it also gives the number of stations for
the proposed system to be used for costing estimates.
2. Bicycles-to-population Ratio: the average number of
bikes per person in the coverage area
This parameter scales the number of bicycles to the number
of potential users in the area in order to ensure that there
are enough bicycles to meet demand. Large, dense cities or
areas with high numbers of commuters and/or tourists will
likely require a bicycle-to-population ratio of a minimum
of ten to thirty bikes per 1,000 residents to meet demand.
Cities that have a large influx of commuters during the
day will need a higher ratio of bikes-to-residents to serve
commuters as well. This ratio should be large enough
to meet demand, but not so large as to have fewer than
four daily uses per bike. While this serves as a planning
guideline for the detailed design, this also gives the number
of bikes for the system to be used for costing estimates.

The Planning Process and Feasibility Study

3. Docks-per-bike Ratio: the average number of docking

spaces per bike
Having more docking spaces than there are bikes is
critical to ensure that there will be a parking space for
a bike at multiple locations. Once the number of bikes
needed for the system has been determined, the number
of docks required should be considered as a function of
the number of docks available per bike in service. Most
successful medium and large systems have 2-2.5 docking
stations for each bike in service. Montreal, London, and
Washington, D.C., each have two docking stations for each
bike in service, while New York has 2.5, Mexico City has
2.2, and Paris has 2.4. An analysis of the performance
of the systems based on the ratio of docks to bikes was
inconclusive. However, it is likely that cities with less
mixed uses and highly directional peak flows of bicycles
(generally toward the center in the morning and toward
the periphery in the evening) will need a ratio that is closer
to 2.5-to-1, while more mixed-use cities that do not have
such defined peak directional flows can have a ratio that is
closer to 2-to-1. Systems with lower docks-per-bike ratios
may need to invest more in redistribution efforts in order
to avoid station saturation, especially at peak destinations.
While this framework serves as a planning guideline for
the detailed design, this also gives the number of docking
spaces for the system to be used for costing estimates.

44

Fig. 3: Station Density and Performance

Bike-share Market Penetration:
Trips per 1,000 Residents vs Station Density
180

R2=0.43291

Market Penetration:
Trips per 1,000 Residents

160
Mexico City

140
120

Montreal

100
80

London

60

Rio Madison
Denver

40

Lyon

NYC
Paris

Boston

Buenos Aires

20

Barcelona

Minneapolis

DC

Boulder

San Antonio

10

12

14

16

A direct correlation exists

between a higher station
density and a higher
market penetration. A
correlation, albeit weaker,
also exists between a
higher station density and
a higher system efficiency.
SOURCE: ITDP DATA

Station Density (stations per km2)

Bike-share Usage:
Trips per Bike vs Station Density
12

R2=0.26063
Barcelona

Bike Usage:
Daily Trips per Bike

10
NYC

Lyon

Montreal

Rio de Janeiro

Paris

Mexico City

Boston

Denver

London

DC

Madison
Minneapolis
San Antonio

0.0
0

Boulder

10

12

14

16

Station Density (stations per km2)

Bikes Per Population

Station Density

Ideal ratio of bikes per population is

between 10 to 30 bikes per 1,000 residents.

Ideal station density is between 10 and 16

stations per square kilometer.
Fourteen stations per square kilometer is
equivalent to:
One station every 300 meters
Thirty-six stations per square mile

The Planning Process and Feasibility Study

45

Fig. 4:
Bike-share Market Penetration:
Trips per 1,000 Residents vs Bikes per 1,000 Residents
200

R2=0.43291

Shanghai

Market Penetration:
Trips per 1,000 Residents

180
160

Mexico City

140
120

Montreal

100
80

Barcelona

Lyon

60

NYC

Rio

40

Boston

20

DC
Minneapolis
San Antonio

Buenos Aires

0
0

London

10

Madison

Denver

Paris

15

Boulder

20

25

30

35

40

Bikes per 1,000 Residents

Bike-share Usage:
Trips per Bike vs Bikes per 1,000 Residents
12

R2=0.10766
Barcelona

Bike Usage:
Daily Trips per Bike

10
Lyon

NYC

8
Rio

Paris

Montreal

Mexico City

Boston

Denver
DC

Minneapolis

London
Madison
Boulder

0
0

10

15

20

25

Bikes per 1,000 Residents

30

35

40

A higher number of
bicycles per resident
will increase market
penetration. Providing
more than thirty bicycles
per resident, however, may
lead to too few daily uses
per bike. While the data
show that the number of
daily uses per bike tends
to decrease as the number
of bikes per resident
increases, the statisical
relationship is too weak
to accurately predict
values here. These graphs
illustrate the inverse
relationship between the
metrics.
SOURCE: ITDP DATA

The Planning Process and Feasibility Study

46

After the system opens, another parameter that

will be useful in evaluating performance is the
number of annual members per bike in service.
This metric is another way to measure the
amount of use that can be regularly expected.
Many practitioners in the field recommend a
10-to-1 ratio of annual members to bikes to
create a well-functioning system (Cohen 2013).
Systems below this ratio will need to recruit
more members through better promotions,
better bicycle facilities, better system service,
etc. Systems above the 10-to-1 ratio will likely

The Planning Process and Feasibility Study

need to expand to accommodate demand. For

example, New York City surpassed a 16-to-1
ratio in its first two months of operation and
is experiencing difficulty meeting demand at
many locations. This signals that the system
needs to expand to meet ever-growing demand.
The parameters used for the feasibility study
and as the framework for planning do not address
specific station locations or the exact number of
bikes and docking spaces at each station, as that
is determined in the planning and detailed design
phase.

Hangzhou has stations

with attendants who
monitor bike check-in
and check-out.
KARL FJELLSTROM

47

2.6 Financial
Analysis
Once the system size has been decided, an
initial financial analysis can be undertaken.
This analysis usually considers the estimated
capital outlay, projected revenue, and estimated
operational cost. It should also consider the
advantages and disadvantages of different
financing mechanisms.
An estimation of capital costs and operating
costs can be calculated by multiplying the
number of bikes, docks, and stations against
an average cost. The capital and operating
costs are a function of system technology
and are straightforward to determine, but the
revenue depends on usage levels and can only
be fully estimated in the detailed planning
stage. Usually the revenue scenarios are
based on expectations of demand using both a
conservative estimate (in which demand, and
therefore revenue, is low) and an optimistic
scenario in which demand projections are
higher, resulting in higher projected revenue.
Capital costs are often expressed in terms
of the cost per bike, defined as the total
cost of the systemincluding stations, bikes,
redistribution equipment, the control center,
and other equipmentdivided by the total
number of bikes in the system.
Operating costs vary widely from system
to system and from city to city due to many
factors, such as the cost of labor, accounting
practices, and, of course, system planning
and infrastructure. Common operating costs
are expressed in an annual-per-bike amount
and can range drastically depending on
redistribution mechanisms and needs, labor
costs and service level delivery. In Zhuzhou,
China, for example, annual operating costs
are 1,200 (US$191) per bike but similar 3rd
generation systems in the West can have
operating costs of upward of US$1,970 -4,200
per bike (Midgley 2011).
Using cost-per-bike may be useful in the
planning stage to size the system financially,
but in analyzing system performance after it
opens, a per-bike analysis is not recommended,
because bike fleets vary from day to day (Cohen
2013). Some have used the per-dock basis for
analyzing annual operating costs as a more
stable, and therefore, more comparable basis

The Planning Process and Feasibility Study

(Cohen 2013). However, this guide recommends

evaluating the cost efficiency of a system after
it opens by looking at operating costs per trip.
For example, Mexico City and Washington,D.C.
have similar operating costs per trip ($468 and
$556 respectively), while operating costs per
bicycle are very different ($2,594 and $1,255
respectively). Mexico Citys per bike costs are
about double that of Washington, D.C.s but
its per trip costs are lower. Like other transit
systems, the goal of bike-share systems
is to attract and move as many people as
efficiently as possible, and a systems operating
expenditure should be based on the number
of people, as expressed in the number of trips,
using it. Most transit systems express their
costs in a similar way.
To estimate revenue, multiply the demand
estimations for usage against the proposed
revenue structure. Demand is often estimated
using what is called an uptake rate, which is an
assumption of the likely usage as a percentage
of the residential population of the coverage
area. As previously discussed, London used an
uptake rate of nine percent, based on market

Bike-share systems can

range from very simple
(such as EnCicla in
Medelln, top) to more
complex (such as Citi Bike
in New York City). The
level of complexity will
have a direct impact on
the financial model.
CARLOSFELIPE PARDO

48

studies. In Paris, after Vlib opened, the

system saw a six percent uptake rate. New York
City looked at three scenarios: a conservative
estimate based on a three percent uptake rate,
a middle estimate using a six percent uptake
rate, and an optimistic scenario of a nine
percent. Ultimately, the city decided to use the
six percent rate for projections (New York City
Department of City Planning 2009).
Another measure of the financial health of
a system is the percentage of operating costs
that are covered by membership and user
fees. This metric, known as farebox recovery,
measures the degree to which a bike-share
system is self-sustaining. Most systems do not
meet their operating costs through membership
and user fees alone, although some do come
close. This metric can be used to determine the
degree to which other revenue sources, such as
advertising revenue, government subsidies, and
system sponsorship, will be needed to cover
operating costs.
A financial analysis of a bike-share system
should consider what percentage of total trips
will be taken by long-term members, and what

The Planning Process and Feasibility Study

percentage by casual members. This metric

can reveal which of the two user groups
will generate the majority of the systems
revenue. In most systems, casual users are
charged a higher price per day than annual
users, and casual users are the source of
more revenue, even if in numbers they are
not the largest user group. Casual users
are less familiar with the bike-share system
in a city and are therefore more likely to
be charged fees for exceeding time limits.
However, systems with high percentages
of casual users are more susceptible
to changes in tourism and subsequent
fluctuations in revenue. Systems with a
high percentage of casual users may rely
on overtime fees for revenue, leading to
unhappy customers, who had inadvertantly
accrued these fees. Typically, as a system
grows, the percentage of casual users
declines, as some casual users purchase
annual memberships.

Many Chinese systems,

including in Zhuzhou, opt
for simpler, cheaper bikes.
LI SHANSHAN

49

Fig. 5: Bike-share Economic Performance:

Operating Cost per Trip (USD)

Operating Cost per Trip vs. Station Density

$6.00
$5.00

London

$4.00
Denver

Boston

$3.00
$2.00

Montreal
Minneapolis

$1.00

Mexico City

Washington, DC
Barcelona
Lyon

$0.00
0

10

12

14

16

Station Density (stations per km )

2

Operating Cost per Trip (USD)

Operating Cost per Trip vs. Bikes per 1,000 Residents

$6.00
$5.00

London

$4.00

The different systems show

Boston

Denver

a degree of variation in cost

$3.00

per trip, with no definite

correlation. Logically,

$2.00
Minneapolis
Washington, DC

$1.00

Montreal

larger, denser systems

Mexico City

should benefit from

Barcelona

economies of scale, and

Lyon

$0.00

each additional trip should

0

10

15

20

25

Bikes per 1,000 Residents

30

35

40

cost less money. However,

the limited amount of data
available does not yet

SOURCE: ITDP DATA

The Planning Process and Feasibility Study

confirm this notion.

SOURCE: ITDP DATA

50

An analysis of US systems illustrates this

shift from casual users to annual. Washington,
D.C.'sCapital Bikeshare annual members
account for 80 percent of the systems trips,
whereas in Boston, the first year saw only
56 percent of rides by annual members (the
remaining by casual) and that number grew to
69 percent in the second year. Most of the other
systems have a split, such that approximately
60 percent of the rides are from annual
members and 40 percent of the rides are from
casual members. Madison B-Cycle system saw
57 percent of its first year trips taken by casual
users, but only 34 percent of rides were by
casuals in the second year (Cohen 2013).

When projecting
usage, London officials
considered density and
location of stations.

The Planning Process and Feasibility Study

51

KARL FJELLSTROM

High demand on
Shanghais system
necessitated building
many large stations with
over a hundred spaces.
LI SHANSHAN

Introduction

Sub

52

section three

DETAILED
PLANNING
AND
DESIGN
Introduction

Sub

53

Detailed system design and planning

applies the parameters discussed
previously to determine the exact locations
and sizes of stations. During this phase, the
city should also decide on the hardware
and software of the system, including
vehicle type, station design, and IT systems.
Finally, during the planning stages, the
city needs to develop a communications
plan and marketing strategy, including the
brand for the system.
Stations should be roughly uniform
distance from one another. The size
of the station will be a function of the
anticipated demand and the attractions
of a particular area, and stations location
will depend on the actual environment.
The station density that was decided in
the feasibility stage should be more or
less adhered to, although some factors
may influence that. For example, areas
that are more densely populated may
require more stations than the stated
parameter, while other areas, due to land
use and existing conditions such as large
parks or industrial areas, may require less.
Detailed Planning and Design

54

However, consistent coverage through

uniform station density, or at least a
minimum station density everywhere, is
critical to creating a system that users
can truly rely on to go anywhere in the
city. Demand in a particular area is best
addressed by adjusting the size of
the station.
Many bike-share systems concentrate
stations in high-demand destination
areas, while neglecting station coverage in
lower-demand, residential areas. However,
a significant portion of trips in most cities
occur in low-density areas of a city. For
instance, many morning commutes begin
in lower-density residential areas, and
many evening commutes end there.
The size of the stations, meaning the
number of bikes that can park at a
station, will be the most variable aspect
of the system design. Every system has
many station sizes that differ because
of demand. Stations can vary from
having ten docks per station in lowdensity areas to as many as hundreds
Detailed Planning and Design

55

of docks per station in very high-density

areas with high peak-hour flows. Vlib
ranges from twelve docks per station in
lower-traffic areas to seventy docks per
station in central tourist areas, while
stations in Hangzhou and Shanghai can
accommodate hundreds of bikes at a
single central location.
Existing trip patterns can be researched
to help determine demand and station
locations. Because most transport models
use zone structures that are too large to
be of much use in deciding on the size
and location of bike-share stations, most
cities use local knowledge to determine
these elements. To get an idea of popular
destinations in the area, origin-destination
(OD) surveys can be conducted at major
local public transport terminals and
stations, focusing on passengers who
transfer to taxis or buses to complete
their journeys. This can help to determine
where the system is most likely to succeed
and to anticipate demand.

Detailed Planning and Design

56

3.1 Station Location

Choosing good station locations is critical to ensuring that the system
will have high usage and turnover. Stations should be situated such that
that they can be found at regular and convenient intervals throughout the
area and are in desirable locations that generate usage throughout the
day. General guidelines for locating stations are as follows:

The bike-share system

in Brussels has many
stations in key activity
areas around the city.
KARL FJELLSTROM

The station-density parameter, such as 1

station every 300 meters, that was defined
in the feasibility study (see section 2.3.4)
should be the basis to ensure mostly uniform
coverage.

Stations should be adjacent to mass

transit stops and stations, as bike-share is
complementary, helping passengers connect
more easily and quickly to their destinations.

Whenever possible, stations should be

located along existing bike lanes or on
streets that are safe and accessible for bikes.

Stations are best situated on or near corners,

so that users can access and egress from
multiple directions.

Detailed Planning and Design

Stations are ideally located between multiple

uses that generate activity at different times
of the day. This ensures that bikes will be
used from morning to night. For example,
a station that is situated between an office
complex and bars/restaurants means that
the bikes are used by commuters during the
morning and evening and by the restaurant
and bar customers during the middle of
the day and night. Proximity to places that
attract lots of different types of activity over
the course of the day increases safety for the
users.

Stations should not be placed next to barriers

like train tracks, or single-use areas such as
a large gated park or factory. Barriers reduce
the area that the bikes can reach, reducing
their effectiveness. Stations in single-use
areas have lower usage because there are
fewer activities to attract a variety of users.
Underused areas, like underpasses, while
interesting in terms of having space to place
the station, should be carefully considered
for potential safety concerns.

57

The city should specify which guidelines it

wants to follow as a framework for the next
step of determining the exact location of each
station. Determining ideal station location is a
two-step process:
1. Create a first draft of all station locations
2. Finalize the positions through site visits and
stakeholder engagement
Creating a first draft of station locations can be
done in one of two ways: The first draft can be
mapped out remotely using a grid approach and
then verified by a site visit, or it can be done
in the field and then analyzed remotely and
adjusted where there is too much coverage or
too little. Either way, the idea is to have roughly
even distribution of stations while working
within the constraints of the environment.
To map locations remotely, draw a 1 x 1 km
grid over the map of the coverage area using
a computer program such as Google Maps or
GIS, or simply using a paper map, marker, and
ruler. The grid provides a simple foundation for
rational and even distribution of stations. The
map should show transit stations and bicycle
lanes, as well as any other important demand
generators or facilities. Then, applying the
station density parameter and station location
guidelines, calculate the number of locations
per grid square. This ensures that stations
are spaced evenly throughout the coverage
area. If the desired station density is fourteen
stations per square kilometer, fourteen stations
should be placed more or less evenly in each
box on the maps grid. The grid can be altered,
subdivided or zoned into high-station-density
zones and low-station-density zones if desired,
though a uniformly high-density approach is
recommended for most situations.
If you start in the field, you will need to
analyze the results to ensure continuous
coverage by drawing coverage areas of each
station (using a radius of 150 or 200 meters).
The areas left without coverage will, then, need
to be analyzed to see if a station should be
added, and, if so, where. While the goal is to
use the station-density parameter to ensure
uniform coverage, rarely is this achieved 100

Detailed Planning and Design

percent in practical terms. This is because

existing infrastructure and space often dictate
how many and what size of stations are needed.
Exact positioning of the station will require
a site visit. Using a bicycle to conduct the
site visit is recommended because it will give
the planners a sense of the coverage area
from the perspective of a cyclist and will be
more efficient for siting many stations. A tape
measure and a GPS or smart phone will also
be needed. If using a map, visit each general
location marked on the map grid and examine
the area to determine the specific site to best
accommodate the bike-share station and see
if there is sufficient space for the station. The
space needed per station will depend on how
many bikes are at that station. Depending on
the bike docking design, each bike will need a
space that is approximately 2 meters long and
0.71.5 meters wide.
Once this draft has been finalized, it needs
to be vetted by stakeholders. Engaging
stakeholders in the station location process
is a good way to build support for the project
and gain an understanding of the demand for
particular stations. Community workshops to
present these plans provide an opportunity

New York Citys Station Location Guidelines

The following are the general guidelines for the location of New York
Citys bike-share stations:

On wide sidewalks or in the roadbed. Bike stations should not

impede pedestrian or vehicular traffic

With enough frequency to ensure program visibility and use

(approximately 2830 stations per square mile)

Along existing or proposed bike lanes whenever possible

Near subway stations, major bus stops, the Staten Island Ferry
Terminal and other ferry landings

Near major cultural and tourist attractions

Adjacent to major public spaces and parks

(NEW YORK CITY DEPARTMENT OF CITY PLANNING 2009)

58

No stations
are located here because
of a variety of reasons:
a dense urban village,
private land (universities)
and a park where it is
prohibited to ride
a bicycle

ITDP CHINA

Proposed Station Placement for Guangzhou, Chinas, Bike-share

The station-density parameter is a guideline that, on the ground, may need to be adjusted,
as is seen with the first phase of the bike-share system in Guangzhou. The bike-share system
was implemented in conjunction with the BRT corridor. Bike-share stations are needed on both
sides of the corridor because the only way for users to cross the corridor is through pedestrian
bridges, which would require carrying the bicycle up flights of stairs to get to the other side.
Therefore, the density of stations along the corridor is much higher than the recommended
ratio. Conversely, in areas where bicycling is forbidden, such as a large park, there are
no stations.

to disseminate information about bike-share

to people living in neighborhoods where the
system will be introduced, and can be valuable
in choosing where to place docking stations and
understanding demand. Before holding public
meetings, the government should establish
criteria for approving or denying station
requests. Another, increasingly popular method
is to crowdsource the station locations through
websites. This can also serve to identify high
demand areas. This, however, will not identify
the exact location of the station, just proximate
areas that need to be served by the system.
Exact locations for stations need to be done
through analysis and selection by the planning
team.
New York City crowdsourced station
location ideas by organizing an website
where people could request a bike-share
station or vote for one that had already been
identified. The city received more than 10,000
station location ideas and 55,000 votes for

Detailed Planning and Design

suggested stations. This helped show public

support for this initiative. The city also held
159 workshops with the community to refine
station locations. For each possible station,
the Department of Transport identified up to
five potential locations that were then brought
to the community to finalize the location.
Crowdsourcing and community workshops also
can help provide some political cover when
the system is being implemented if a backlash
occurs when the stations show up on the
streets, as happened in New York City
(Miller 2013).
Once the specific location for a bike-share
station is established, it should be placemarked
using a GPS system (or bookmarked on a smart
phone), a photo should be taken and precise
details noted about the station positioning.
These coordinates, notes, and photos should
then be given to the station installation
contractor to safeguard against location/
positioning errors, which are common.

59

Care must be used in matching station

location to the cityscape. Stations are better
located in sunny spaces when possible, rather
than under trees, so that the bikes dry off more
quickly after it rains. This is also important if
the system is solar-powered. Locations will
need to balance visibility of the system with
integration into the street environment. Often,
larger stations in prominent areas are designed
to stand out against their landscape, while
stations in residential areas are meant to blend
in to the streetscape. Stations should not be
placed on footpaths unless there is sufficient
clear space for walking beside the station. In
general, a width of two meters of clear space for
walking is recommended in all locations, and
more space should be provided where there is
higher pedestrian traffic. At intersections, space
is often more readily available on the minor
street than on the main thoroughfare.
A variety of options for station locations
should be considered:

On-street parking spaces: Car parking

locations are an ideal location for bicycle
parking stations. In Paris, more than 1,450
on-street parking spaces were removed to
create space for 4,000 bicycles in the Vlib
system (Kodransky 2011). Similarly, Barcelona
converted nearly 1,200 parking spaces for use
by the citys Bicing bike-share system.

Space between landscaped areas or adjacent

to other infrastructure: Space that is not used
often by pedestrians such as in between
trees or planter boxes or next to other
infrastructure such as pedestrian bridges or
utility installations can be used for bikesharing stations without impeding pedestrian
flow.

Dead spaces: Areas beneath flyovers and

bridges, which are often not utilized, can be
good locations. These spaces may raise some
safety concerns, but those concerns can be
resolved by proper lighting and good station
design. A bike-share station can transform
a previously desolate space into something
more lively.

Detailed Planning and Design

Private property near large commercial and

housing developments: Bike-sharing stations
create destinations, so private property
owners can be convinced to give up private
land in exchange for the benefits of having a
station near their premises.

Some systems include

applications for smart
phones that show station
locations.
CARLOSFELIPE PARDO

60

top
Barcelona replaced
parking spaces with bikeshare stations.
DUAN XIAOMEI

bottom
Stations located on
sidewalks are fine, as long
as there is also plenty of
space for pedestrians,
such as at the station on
Avenue Paseo de Reforma
in Mexico City.
AIMEE GAUTHIER

Detailed Planning and Design

61

Bicycle Lanes and Bike-share

While bike-share can be implemented even if there is little existing

cycling infrastructure, pairing
the construction of new bicycle
tracks with the opening of a bikeshare system can add to public
acceptance and improve safety for
users of the new system. Several
cities around the world have
pursued this approach.
In other cases, the success of
the bike-sharing program is high,
even if there are not a lot of cycle
lanes. In Mexico City, there is not
a lot of cycling infrastructure, and
many of the streets in the coverage

area are small streets that do not

need separated space for bicycles.
Given that and in preparation for
the opening of the system, the city
conducted a safety campaign to
teach motorists and cyclists how
to share the street with each other.
Since Mexico Citys bike-share
system opened in 2012, there have
been five million trips, with few
accidents and no fatal collisions
(Godoy 2013). That said, cycle lanes
do help, and where good cycle
lanes have been built in Mexico City,
annual bicycle flow has increased
over 40 percent.

Bogots pilot bike-share

program was explicitly
developed along
bikeways to increase
user safety.
CARLOSFELIPE PARDO

Fig. 6: Cycling Infrastructure Implemented Alongside Bike-share Systems

City

Bike Infrastructure With Bike-Share System

Guangzhou, China

46 kilometers of segregated bike lanes

Paris, France

68 kilometers of segregated bike lanes, in

addition to 371 existing kilometers

London, United Kingdom

37.8 kilometers of 4 cycle superhighways

Barcelona, Spain

150 kilometers of segregated bike lanes

Boston, United States

80 kilometers of segregated bike lanes

(Kaiser 2012)

Rio de Janeiro, Brazil

300 kilometers of physically segregated

(ciclovias), painted lanes (ciclofaixas) and
signalized shared routes (either with traffic
or pedestrians)

3.2 Station Sizing

Once the station locations have been chosen,
the next decision will be how big those stations
should be, including the number of bikes
and the number of docking stations. This will
depend on the demand of the area, which can
be determined by several different methods:

Conduct surveys at the transit stations to see

where people are going and if they would
use a bike to get there if the option were
available.

Look at existing mode splits and major

attractions or points of interest that may
create a higher demand.

Crowdsource station locations to get an idea

of the demand for a particular area. This can
be done online by asking people where they
would like to see a station. It can also be
done in public areas in an installation where
people can mark on a map where they would
like to see a station.

Hold community workshops to test station

location and get a sense from the community
of the local demand.

Detailed Planning and Design

To simplify the planning process, stations can

be defined into few key sizes, such as small,
medium and large, so that each station size
is not overly deterministic. Once demand is
determined, the station size will then be the
number of bikes per station multiplied by the
docking-space-per-bike ratio to determine the
number of docking spaces at each station. For
example, if the docking-spaces-per-bike ratio
is 1.7 docking spaces per bike, a station that
needs ten bikes will need seventeen docking
spaces.
Using modular stations mitigates some of the
risk of wrongly sizing stations, as it is easier
to add or remove docking spaces once the
system opens. See the next section for more
information.

63

3.3 Station Type and Design

There are three key considerations for choosing a station type:

Manual versus automated

Modular versus permanent

Docking style

Station design is a function of the level of demand, the amount of space

available, the cityscape, and the desired visual impact on the urban
environment. The choice of station type will need to take into account the
IT requirements for each option.
Stations are composed of bicycles, docking spaces, and terminals, also
known as kiosks. Docking spaces are where the bikes are parked and
locked when not in use. In some systems, users can check out bikes at
the docking space. Docking spaces represent the single largest capital
cost in many systems, but a greater number of docking spaces helps cut
operating costs by reducing the need for redistribution of the bikes. This
guide uses terminals as the term to cover the places where users can get
information about the system, but these can also be called kiosks and
totems. Stations can also include advertising boards that can be rented
as a source of revenue for the system.

Londons Barclays Cycle

Hire chose to install
stations that are fixed into
the ground. The terminals
have excellent signage
explaining the system and
how it relates to other
aspects of the city.
KARL FJELLSTROM

Detailed Planning and Design

64

3.3.1 Manual vs. Automated

Systems can be either manual or automated.
In a manual system, an attendant records the
users information and helps with checking
in or out the bike, including payment. This
information can be recorded on paper or
electronically. Automated systems are where
the user checks in or out the bikes and makes
payments electronically either at the terminal
or kiosk or directly at the docking station. These
types of systems often use specialized key
cards for the users. The key difference is having
an attendant at the station who checks in and
checks out the bikes for the user. Some systems
have a mix, where larger or higher demand
stations have an attendant.
Manual systems entail reduced initial capital
costs compared to automated systems, but
long-term operating costs are higher, and
system reliability suffers. Proponents of manual
systems argue that having staff at stations
generates better service, reduces theft and
vandalism, and requires less technological
complexity at stations. Manual stations are
used in systems of various sizes in places like
Buenos Aires (although the city is moving to
an automated system, keeping some larger
stations as manual), Santiago, and Medelln.
These are very basic types of stations that need
only a simple locking mechanism for the bicycle
(if the bikes are locked at all) and depend
exclusively on an attendant. Their designs
can be simple: some, such as the system in
Buenos Aires, use specially designed freight
containers; others, like Santiago's system,
have no significant infrastructure other than
a large horizontal pole to hang the bicycles.
These basic stations are obviously the easiest
to maintain and least expensive.
Automated stations are more complex in
design, installation, and maintenance than
manual stations. The capital costs will be

Detailed Planning and Design

Bike-share stations
should provide customers
with information about
how to use the system.
In Rio, a placard offers
instructions, as well as a
map of the system.
AIMEE GAUTHIER

higher than those of manual stations, but

the operating costs over time will be lower.
Automated stations are more secure and do
not need staff at stations. Their design is more
sophisticated in that it must include specifically
designed docking infrastructure to lock the
bicycles and technology that allows wireless
information to transfer from the docking
spaces and terminals in order to facilitate
the checking in and out of bikes. Instead of
attendants, the stations have a terminal that
gives users information, accepts payment,
and allows for checking bikes in or out. At
least initially, however, automated terminals
can be confusing, and can thus deter people
from using the system. London addressed
this problem by employing staff for an initial
inaugural period to instruct people on how to
use the system. However, terminals are not
necessary, as the docks alone can allow for bike
check-in or return.
While manual systems require an attendant
at all stations, automated systems may also
want to have a staff person at certain large
stations for customer-service reasons. Though
manned stations are cost-prohibitive in some
economies, manned stations are desirable in
many developing economies because of the job
creation, security and added customer service
that accompany them.

65

top
Capital Bikeshare
allows users to sign up,
check in and check out
automatically.
AIMEE GAUTHIER

bottom
The bike-share system
in Medelln is manually
operated, and every
station is manned by one
or two people. However,
the stations also have
GPS-tracking software and
GPRS ID software.
CARLOSFELIPE PARDO

Detailed Planning and Design

66

Buenos Aires:
Moving from Manual to Automated
Buenos Aires opened its bike-share in 2010 with 100 bikes, and by 2013
had expanded to thirty stations and 1,200 bikes. The system is a manual
system using specially designed containers as stations. In first half of 2014,
the system will expand again, reaching 200 stations and 3,000 bikes, and it
will transition to a mixed system, with both manual stations and automated
stations. The city decided to make this change because larger systems are
more easily managed through automated stations. However, the stations
with the highest demand will remain manual for the time being. Automated
stations will be open 24 hours a day, while the manual ones will close at
night. (City of Buenos Aires 2013)

In the first phase of

Buenos Airess bike-share
system, users checked out
bikes from an attendant.
ITDP ARGETNINA

3.3.2 Modular vs. Permanent

Two main types of stations are modular
and permanent. Modular stations are easily
moved, usually constructed on a base that
is then bolted into the concrete or asphalt.
Those stations require solar power. Permanent
stations require excavation and trenching to
reach the power source. This requires a longer
time frame to implement and may entail a more
onerous approval process.
The most flexible type of automated station
is the one that was introduced in Montreals
Bixi system and is now used in other cities
such as Washington, D.C., and Melbourne. It
consists of a heavy base with docking locations
and a terminal for information/registration/
payment, but it can also be relocated. The
station is bolted into asphalt or concrete, but
uses solar power and thus does not need to be
connected to an underground power source.
Once a station is built, if its location is found
to be inadequateas is sometimes discovered
after some weeks of operationthe station
can easily be relocated to a place with better
demand. Stations like this are also more easily
scaled up or down, adding or removing docking
spaces as real usage is determined after
opening.

New York City chose

modular stations that
were quicker and easier
to installboth the docks
and terminals are on
platforms that connect
to each other.
NYCSTREETS (CREATIVE COMMONS)

Detailed Planning and Design

68

Detailed Planning and Design

69

top
Stations in Lyon are
permanent, meaning that
infrastructure is installed
directly into the ground or
pavement.
KARL FJELLSTROM

bottom
Solar panels on Bixi
stations in Montreal
power the stations thus
not requiring excavation
to power lines.
MAX HEPP BUCHANAN

opposite top
Shenzhens bike-share
system uses individual
docking stations that
users insert the wheel of
the bike.
KARL FJELLSTROM

opposite middle
The bike-share stations
in Santiago, Chile, are
manually operated,
where the bikes do not
lock to the rack and
are monitored by an
attendant.
CARLOSFELIPE PARDO

opposite bottom
Bicycles in Beijing are
kept in a secure bike
parking area to save
space.
ITDP CHINA

Detailed Planning and Design

70

3.3.3 Docking Styles

In automated stations, there are two basic
types of station design that accommodate
check-in and check-out: docking spaces and
cycle parking areas. Which type works best
depends on the needs and location of the
station:

Docking spaces:
Each space docks one bicycle. The number
of spaces determines the size of the stations
footprint, which means there is a great deal
of flexibility in adjusting the station size to
fit the existing urban landscape. This style
takes up more space per bike than cycle
parking areas, but blends in better with the
urban environment. Bicycles are checked out
by customers either at the terminal or at the
actual docking space.

Bike parking areas:

Bicycles are stored together in a secured
area, on racks. Cycle parking areas are a
good option for larger stationsi.e., more
than 50 bicyclesbecause cycle parking
racks can hold more bikes per square meter
than docking spaces. At stations with cycle
parking areas, bicycles are checked in and
out through a turnstile or manually. Because
these stations require a secure area that
is fenced or walled off, they can be more
intrusive in the urban landscape.

A station can use individual, stand-alone

docking spaces, as in Paris, or it can use a
docking bar that joins the different spaces
together, as in Mexico City and Washington,
D.C. Individual docking spaces are perceived
to integrate better into the urban environment
and are more porousunlike docking bars,
individual docking spaces do not create an
obstruction that pedestrians must walk around.

Detailed Planning and Design

71

Other considerations for docking spaces

include whether the user rolls the bike into
the docking space to lock it into the dock, or
whether the bike must be lifted up.
A system may incorporate both station types,
depending on demand levels, desired street
views and availability of space at a particular
station. While docking stations are popular
for roadside stations, bicycle parking areas
are best utilized in underused spaces, such as
those beneath overpasses or in suburban areas,
where land space is not as precious as it is in
cities. Whether a system uses docks or parking
areas, stations should always have more
docking positions or storage space than bikes
in order to accommodate peak demand. This
should be reflected in the stations dockingspace-per-bike ratio.

Detailed Planning and Design

top
New York City chose to
install some docks where
the road was very narrow
to save space.
AIMEE GAUTHIER

bottom
Lyon, France, uses
individual docking
stations where the locking
mechanism is on the side
of the frame of the bicycle.
LUC NADAL

72

top
In Rio de Janeiros system,
bikes lock into the side
of the docking bar, rather
than the top.
AIMEE GAUTHIER

bottom
The docking system for
Ecobici requires the user
to line up the bike so it
can be properly inserted
into the docking bar.
AIMEE GAUTHIER

Detailed Planning and Design

73

left
Information systems can
be highly complex and
may include interactive
touchscreens, like this
one for Call-a-Bike, which
operates in several cities
in Germany.
CARLOSFELIPE PARDO

below
Smart cards and fobs,
such as those in Mexico
City or New York City,
allow regular users easy
access to the system.
BOTTOM PHOTO BY TSITIKA (CREATIVE
COMMONS), TOP PHOTO BY SHINYA
(CREATIVE COMMONS)

3.4 Information
Technology Systems and
Payment Mechanisms
Information technology (IT) forms the nervous system for the bike-share
system, connecting the individual stations, users and control center using
software and data-transmission mechanisms. Decisions that must be
made relating to IT include deciding how customers register and pay for
the system, how bikes are checked in and out from the docking spaces,
and how information is transmitted both internally for management and
externally for the customers.
The software needs to support the front end, or the public side, of the
system, including registration of new users, payment and subscriptions,
general information about the system, and customer data management.
The front end of the IT system can include website portals and apps for
smart phones. On the back end, where the implementing agency and
operator receive the information required to run and manage the system,
the software needs to support station monitoring, redistribution of bikes,
defect and maintenance issues, billing, and customer data.
Most systems use card technology (smart cards, magnetic cards,
or credit cards) to check bikes in or out. The second most popular
technology is locks that use codes to release the bikes. Some systems
are manual and do not require any technology to release or return the
bikes. A few systems use keys.
IT will need to serve two types of users: long-term userswho are
usually registered members and use the system with some frequency
and casual users, such as tourists, who use the system infrequently
or even just once. Long-term members can be given access cards and
can place deposits to use the system. Casual users will not be able to
use the system if a special access card is needed or if there is no way
to guarantee the return of the bicycle (which is usually accomplished
through a financial mechanism, like a hold on a credit card).

Detailed Planning and Design

74

In most systems, members check out cycles

using RFID smart cards or keys. The smart card
is registered in the users name and carries a
balance from which user fees are deducted.
For short-term users who have not registered,
such as tourists, many systems accept credit
cards, placing a hold on the card that acts as a
guarantee in case the bicycle is not returned.
Nearly all existing systems require a
guarantee before use to ensure that users will
return bikes. Sometimes this guarantee is in the
form of either a hold on the credit card while
the bike is in use or a deposit that is held by the
operator until the user cancels the membership.
If the bike is not returned, the prepaid deposit
is retained or the users credit card is charged
for the guarantee amount. However, both credit
cards and deposits present barriers for lowincome users.
In Guangzhou, China, users must have a
minimum balance of 300 (about US$48) on
their smart cards (called a Yongchengtong
card), about 67 percent of the cost of a bike (the
bikes cost 450). The company is not allowed
to touch this money, and it is held in escrow.

In some Chinese cities, citizens can use the

local ID (called a hukou card) to register in the
system and do not need to put down a deposit
at all. This is the case in Shanghai, Shenzhen,
and Yantian. Bangalore requires a deposit of
1,500 (US$28) for members and 2,500 (US$46)
for non-members. Buenos Aires and Rio de
Janeiro do not require a deposit, but
do require registration, which can help locate
users in the event of theft or damages.
Mexico City requires a deposit of US$416.
Bixi, in Montreal, requires a deposit only for
non-members.
Payment systems are very specific to the laws
and payment options available in the country
in which the bike-share operates. Different
countries have different privacy regulations and
laws regarding payment, as well as different
requirements for keeping the customers
information secure. Most countries have very
established payment mechanisms, and it is
best to work within those existing systems.
Integrating bike-share payment mechanisms
into the payment systems used by other local
modes of transport should be a high priority.

Fig. 7:
Communications Systems and User-Interface Schematic
User

Cycles

Docks/
turnstiles

Terminals

Stations

Detailed Planning and Design

Call
centre

Online
portal

Service
centres

Control centre

75

3.5 Bikes
Modern bike-share systems are typically
based on a standardized bicycle with specially
designed or proprietary components built solely
for the system for added durability and security
so that the parts cannot easily be stolen and
resold. The appearance of the bicycle is a key
element in the overall branding of a bike-share
system and the bike should project a sleek,
modern image. The design can differentiate the
bike-share fleet from regular bicycles in the city
through distinctive colors, frame style, molding,
and graphics. The bikes must be robust since
they will be used much more frequently daily
than normal bicycles that are designed for less
intensive use. Because of this, bike-share bikes
have an average lifespan of three to five years.
System planners need to define the
guidelines for the bicycle that be the most
important part of the system branding and
experience. The following are some desirable
characteristics:

One-size-fits-all
A bike-share system usually offers only
one size of bike. The bicycle should be
comfortable for the user, but since there
is only one size, it will not be for all users,
but hopefully most. A city can determine
the average user height and make a
recommendation based on that. A stepthrough frame with long seat post can easily
accommodate a wide variety of heights.

Robust
A bike-share bike has a much higher
frequency of use than normal bikes.
Conservatively plan for six to nine uses a day.

Low-maintenance
Bicycle designs that require less
maintenance, including tire inflation, chain
lubrication and adjustment, and brake
adjustment, will have lower operating costs.

Secure
To deter theft, the bike must securely and
easily lock into the docking space, and it
must have components with proprietary
tooling that make it difficult to remove and to
resell the components.

Detailed Planning and Design

Safe
The color of the bike, appropriate reflectors,
bells, and lights for night riding all must
be considered, and must meet the local
laws concerning bike safety. Many bikes
have lights powered by dynamos (through
pedaling) that turn on automatically.

Include storage
A front basket is usually preferred to a rear
rack to help users carry their belongings.
Many systems avoid rear racks to discourage
a second person riding on the back or
carrying excessively heavy loads, both of
which can lead to extra wear and tear.

Generally, these bikes are proprietary designs

and tend to be heavy due to their robust,
comfort- and style-oriented design. In Europe,
bikes range from 14.5 kg (32 lbs.) in Barcelona,
Spain, to 22 kg (48.5 lbs.) in Paris, France. Bikes
in both New York and Washington, D.C. weigh
20 kg (44.1 lbs). In Guangzhou and Hangzhou,
China, bikes weigh 14.3 kg (31.5 lbs) and 15
kg (33.1 lbs) respectively. In Buenos Aires, the
bikes weigh 18 kg (39.7 lbs), in Rio de Janeiro
17.2 kg (37.9 lbs), and in Mexico City 14.5 kg (32
lbs). These bikes also usually have mudguards
and chain covers to protect the user from dirt
and oil.
Bikes require ongoing maintenance, both
in terms of prevention and new parts. The
three major points of maintenance on bicycles
are tires, which will need tube changes and
regular inflation; brake pads, which will need
to be replaced; and drivetrains, which will
need lubrication and adjustment due to chain
stretch. However, new technologies have
been developed to address these problems:
Shanghais Forever Bicycle Company has
developed bicycles for the Shanghai bike-share
that employ lightweight, solid foam-rubber
tires that never need to be inflated, beltdriven drivetrains that need no lubrication or
adjustment, and drum brakes that are more
durable, are unaffected by rain, and need to
be replaced much less frequently than regular
brakepads.

76

Londons bike-share bikes

have mud guards and
chain protectors.
LUC NADAL

Detailed Planning and Design

77

top
Ecobici has mud guards
and chain protectors to
protect the user from dirt.
AIMEE GAUTHIER

middle left
Capital Bikeshare, in
Washington, D.C., uses
bikes that completely
enclose the chain, gear,
and brake systems in
order to protect the
customer from dirt and
grease, and the bikes from
dirt and tampering.
CARLOSFELIPE PARDO

bottom left
The system in Medelln,
Colombia, offers two types
of bicycles, depending on
station location: a road
bike and an off-road bike
(pictured).
JORGE IVAN BALLESTEROS

bottom right
Shangais tires are
special-made to fit the
terrain in the city.
LI SHANSHAN

Detailed Planning and Design

78

Are Helmets
Necessary?
Helmet use can pose a problem
for system operation, especially if
it is required by law, as in Bogot,
Colombia, and Melbourne, Australia.
Helmet requirements represent
an additional system cost and a
significant potential barrier to use,
for the following reasons:
If each bicycle needs a helmet,
there must be a system to
distribute the helmets, as well
as to prevent loss or theft
Users may be reluctant to use a
helmet worn by someone else
Users will not necessarily use a
helmet, and if they do, they may
not return it, since theres no way
of attaching it securely

concerns regarding leaving helmets

exposed to the elements at stations.
For Ecobici, in Mexico City, helmets
were initially mandatory, but the
law was repealed for reasons of
Users will not necessarily carry
social equity, on the grounds that
their own helmets, since the whole not everyone could afford a helmet
trip will not be made by bike and
and disposable helmets were an
they are unlikely to carry around a environmental hazard (Penalosa
helmet just in case
2010).
The mandatory helmet law in
The operator of Washington, D.C.s
Melbourne has generated some
SmartBike system argued that
negative effects with regard to
helmets could not be provided for
system ridership, finances, and
hygiene reasons (i.e., that helmet
an overall perception of cycling as
use by different people involved
dangerous. However, the operator
a risk that was not compatible
feels that the systems insufficient
with local health regulations) and
coverage area has a greater
thereby freed itself from the helmet negative effect on ridership than
requirement. There have also been
the helmet law (Alta 2012).

In Melbourne, Australia,
cyclists are required to
wear helmets.
ALASTAIR SMITH (CREATIVE COMMONS)

The Cycle
The cycle should be attractive and durable. The overall appearance of the cycle is a key element
in the overall branding of a cycle sharing system and should project a sleek, modern image. The
design can differentiate the cycle sharing fleet from regular cycles in the city through distinctive
design, colours, and graphics.

Front basket
The cycle should be designed with a porous front basket for carrying
personal items. Rear racks are not advisable as they can be overloaded,
causing damage to the cycle. Front baskets are ideal for carrying purses
and valuables, which would be subject to theft if carried in a rear rack.
The design should prevent the use of the basket for carrying a second
passenger.

Docking mechanism with RFID tag

The RFID device carries the cycles unique
identification number and is read when the
cycle is docked at a station. The cycle should
be held in a fixed position when docked.

Sturdy tires
Solid or puncture resistant tires with a wide
profile are recommended to reduce the
frequency of punctures and increase life
expectancy.

Drum brakes
Front and rear drum brakes with internal wires
are preferred. Disk, cantilever, and V-brakes
should be avoided because they are difficult
to maintain.

Protection against theft & vandalism

Step-through frame

The cycle should be made from unique parts and sizes to deter theft.
Nuts and screws should be designed so that they can only be opened
with proprietary tools. Similarly, the standard 26-inch tire size should be
avoided. (The tire diameter should not be too small because small tires
are prone to getting stuck in potholes.)

A step-through frame design is required to

ensure that the cycle is compatible with all
types of clothing. The frame should allow for
a comfortable upright riding position.

Detailed Planning and Design

80

Adjustable seat post

Quick release seat posts can be designed to allow easy height
adjustments without making it possible to completely remove the post.
A numbering system on the seat post can help frequent users adjust
the seat height quickly.

Chain guard
The chain guard protects the user from grease
and the chain from damage.

Mudguards and advertisement space

Front and rear mudguards are needed to protect
clothing. The cycle should have a provision for
the installation of advertisements over the front
and rear wheels and in the frame.

Gears
If the city has hilly terrain, a three- or six-speed
internal hub can be provided.

Automatic lights
Front and rear LED lights powered by a hub
dynamo are needed for visibility at night. In
addition, reflectors should be provided on
wheels, pedals, and both ends of the cycle.
The frame colour and branding elements on
the cycle should be bright and reflective.
A yellow, orange, red, or reflective chrome
colour is preferable.

Safe pedals

Protected components

Large, flat pedals can help inexperienced riders

keep their feet securely on the pedals. Avoid
selecting a pedal with sharp barbs, as they can
injure the foot and leg of an inexperienced rider.

If the cycle has multiple speeds, these must be provided through an

internal hub. External derailleurs are to be avoided, as they are fragile
and difficult to maintain. Wiring for brakes and gears should be hidden.

Detailed Planning and Design

81

3.6 Marketing
Bike-share is a new type of transport solution for cities, and a wellthought-out public participation and marketing campaign is essential for
gaining acceptance of the system. A broader marketing campaign can
follow, making use of print media, the Internet, and other media.

3.6.1 System Identity

A bike-share system needs a clear, consistent
identitya strong brandthat presents a
professional, modern image and distinguishes
it from other urban transport options. There are
several elements of the identity, including the
systems name, logo, and tagline. Consistent
use of the core identity elements can improve
customer identification with and pride in the

Detailed Planning and Design

system. The systems brand should all be easily

used in different types of media. Choosing an
effective name is critical to the identity of the
system (Wright 2011).
The name of the system should usually be
one short word, should carry a positive and
ideally local connotation, and should roll nicely
off the tongue in the local language. The name
can either reflect some aspect of the system, or

Marketing can be done

in various ways. Above,
Minneapolis residents call
attention to the new Nice
Ride bike-share by wearing
banana suits.
MASSDISTRACTION (CREATIVE COMMONS)

82

the system can take a positive connotation from

the name it is using. A well-thought-out name
can be a way for users to identify with a system.
The system should have a logo that is
meaningful in the local context. The logo can
help create a vibrant, progressive image for the
system. The tagline can link the name to the
function of the system. It can ground a name
in what the system does for the individual or
the community. In New York City, Citi Bikes
tagline is Unlock a bike, Unlock New York. In
Washington, D.C., Capital Bikeshares tagline is
Take one & go. These taglines help create a
vision for the system or for the person using the
system. They further communicate what bikeshare can do for the user and the community.

3.6.2 Internal Marketing

Internal marketing focuses on educating staff
and officials from the city, departments within
the city (such as the the departments of parks
and recreation, environment, and transport),
and other transport operators about the service
the system will provide, and its costs and
benefits. The internal campaign is more than a
presentation to each body. Most important is
a focus on integrating the bike-share system
into the citys overall transport framework.
True success in integration can be seen by the
creation of complementary external marketing
plans, combined signage, and pricing and
operational coordination.

3.6.3 External Marketing

The goal of the external campaign is to inform
the public about the merits of bike-share, how
the system works, and the benefits to the
individual citizen and to the city as a whole.
The external marketing campaign should make
use of new media, such as blogs and socialmedia sites, to reach different audiences. The
marketing campaign must work proactively
with media houses to define the public
narrative about the system, rather than simply
responding to external queries. Before and
after implementation, it is important to have
a communications push around safe cycling
aimed at new cyclists and car drivers.

top
Advertisements raise
awareness and excitement
for a program, as above in
Brussels, Belgium.

Detailed Planning and Design

83

KARL FJELLSTROM

bottom
In a successful bike-share
system, city officials like
Janette Sadik-Khan of New
York City embrace the
program.
NYC DOT (CREATIVE COMMONS)

Detailed Planning and Design

84

Fig. 8: Table of Names of Bike-share Systems

City

Country

System Name

London

U.K.

Barclays Cycle Hire

Paris

France

Vlib'

Barcelona

Spain

Bicing

Lyon

France

Vlo'v

Montreal

Canada

Bixi

Washington, D.C.

USA

Capital Bikeshare

Guangzhou

China

Guangzhou Public
Bicycle

Hangzhou

China

Hangzhou Public
Bicycle

Mexico City

Mexico

Ecobici

Rio de Janeiro

Brazil

Bike Rio

Dublin

Ireland

Dublinbikes

New York City

USA

Citi Bike

Denver

USA

Denver B-Cycle

Minneapolis

USA

Nice Ride

Chattanooga

USA

Bike Chattanooga

Madison

USA

Madison B-Cycle

Taipei

Taiwan

YouBike

Brussels

Belgium

Villo!

Tel Aviv

Israel

Tel-o-Fun

Boulder

USA

Boulder B-cycle

Boston

USA

Hubway

San Antonio

USA

San Antonio B-cycle

Toronto

Canada

Bixi Toronto

Barclays bike-share in
Londonknown around
the city as Boris bikes
has a clear, recognizable
identity.
KARL FJELLSTROM

Detailed Planning and Design

85

section four

BUSINESS MODEL
Introduction

Sub

86

Barcelonas Bicing system

uses its stations to protect
segregated bike lanes.
LUC NADAL

Introduction

Sub

87

The business model defines the asset

ownership and revenue flow between the
government and the operator. The goal is
to balance service provision with resource
allocation. To do that, the government will
need to consider three things:
Organizational structure
Asset ownership
Contracting structure, including service levels

As a public transport system, bike-share

should be situated similarly to other
public transportation systems. Because
bike-share systems are not large profit
centers, the business model more closely
resembles that of public transport than
the models used for toll roads and
parking management, which can often
be unsuccessful when applied to bicycle
sharing because of the difficulty of
obtaining a return on investment.
In the planning phases, the government
agency leading the project will need to
set up a project-management unit to
Business Model

88

oversee the implementation of the bikeshare system. This implementing agency

will manage the detailed system design,
tendering and contracting, and the launch
of the bike-share. Often, this agency
also becomes the administrator that
manages the system for the government
after implementation. In this guide,
the implementing agency will also be
assumed to be the administrator postimplementation, and those terms will be
used interchangeably.
A bike-share system can be completely
public or completely private, but most
successful systems are a combination
of the two. The decision regarding which
aspects should be public or private
depends on the environment in which
the system operates. Different cities need
different structures to meet their specific
needs, and this should be analysed in the
feasibility stage. In selecting a business
model, the government must weigh the
desired utility that bike-share will provide
to a user against the necessary resources.

Business Model

89

4.1 Organizational Structure

The organizational structure establishes the relationship between the implementing agency,
other key departments and officials in the government, and contractors or partners involved in the
ownership, oversight, financing, operation, and management of the bike-share system.

City-wide
Bike Strategy Director

ECOBICI
Manager (clear channel)

Operations

Information
Technology

Customer Service

Finance Coordinator

SEDEMA-ECOBICI
Manager
and Team

Institutional Relations

4.1.1 Implementing Agency

The implementing agency is the government
entity that oversees the planning,
implementation, and operations of the bikeshare system. Ideally, this entity will be located
within the agency that has the authority to
build out the stationsi.e., the authority that
has control over the roadbeds and sidewalks.
As the system grows across political boundaries
and integrates with other transport systems,
however, this structure could hinder expansion.
It is best to consider what a system might look
like in five or ten years, and place the agency
accordingly. This will streamline decisionmaking, growth, and general administrative
processes.

Business Model

SEDEMA-ECOBICI
Director

SEDEMA, the city's

Environment Ministry, is
the implementing agency
for Ecobici. SEDEMA
contracts Clear Channel to
operate the system.
ECOBICI

Outside of the transport department, other

departments that can house the implementing
agency include the departments of urban
development, environment, and parks
and recreation, as well as public transport
agencies and regional planning authorities.
The implementing agency should be staffed
with people familiar with implementing urban
transportation projects, as well as those who
specialize in bike-share. In Mexico City, Ecobici
is administrated by the citys Environment
Ministry.
The implementing agency will be responsible
for detailed system design, tendering and
contracting, developing the financial model, and
infrastructure implementation. For tendering

90

and developing the contract, the agency will

need to include performance criteria and
service- level expectations for the contracted
entities. This agency will also make decisions
about the fees to be charged and the revenue
model, and it will take the lead on community
outreach and promotion.
Once the system has been launched, the
implementing agency will need to manage
it and evaluate the operators performance
according to the defined service levels. Service
levels are the benchmarks for operation that
a system should meet. The list of service
levels embedded in the contract governs
the expectations the government has of the
operator and will affect compensation to the
operator, with penalties for noncompliance or
rewards for meeting or exceeding expectations.
The proper setting of service levels requires
a balance to make sure that the service
levels are set high enough that operations
meet expectations but are not so stringent
as to excessively penalize the contractor. If
service levels are too lax, the operator will not
have any incentive to meet the governments
expectations. If service levels are set too high,
potential operators may be discouraged from
bidding.
The implementing agency plays the role
of referee, keeping the best interests of the
government and the customers in mind, while
also focusing on the financial interest of the
operator. Because of this, the agency ideally
should be independent of the contractor
operating the system.
This agency will also be in charge of planning
future expansion and the promotional activities
that are often still needed even after the system
has been implemented. Evaluation of the
current situation and planning for the future are
ideally done in tandem.

Business Model

4.1.2 Operator
The operator is the entity that handles the
day-to-day operations of the public bike-share
system. The operators duties include managing
the maintenance and general cleanliness of
the fleet of bicycles and stations, as well as the
redistribution of the bicycles. Except in special
circumstances, the operator also handles
the customer service, payment processing,
marketing, and general brand management of
the system.
The first decision when selecting an operator
is determining whether the operator will be part
of the government, such as the implementing
agency or a similar parastatal entity, or an
external operator, such as a for-profit or
nonprofit entity.
A quasi-governmental operator, such as a
transit agency, that is close to the implementing
agency brings with it access to the government
and the benefits of a cooperative relationship.
The drawback to such a situation is that,
historically, public operators bring inefficiencies
that the private sector has proven itself able
to overcome. Private operators generally bring
more cost efficiency, but their primary objective
is profitability, not the creation of a great bikeshare system. When working with a private
operator, a well-written contact and oversight
are essential to ensure that the operator meets
its obligations to the implementing agency.
Sometimes governments prefer turnkey
projects in which the private operator can
set up the whole project by itself in one large
contract, providing both the assets and the
operation. Other times, the government prefers
to separate the contracts for the operations
and for hardware and software procurement.
This mitigates the risk involved with having just
one company that the government is wholly
dependent upon, but it increases the risk of the
different pieces not working well together.

91

Fig. 9: Bike-share System Implementing Agencies and Operators

City

Country

System Name

Implementing Agency

Operator Name

Operator
Type

Buenos Aires

Argentina

Mejor en Bici

City Government of
Buenos Aires

City Government of
Buenos Aires

Public

Brussels

Belgium

Villo!

City Government of
Brussels

JCDecaux

Private

Rio de Janeiro

Brazil

Bike Rio

Prefeitura da Cidade
do Rio de Janeiro

Sertell

Private

Montreal

Canada

Bixi

Stationnement de
Montreal

Public Bike System Company

(Bixi)

Public

Toronto

Canada

Bixi Toronto

City Government of
Toronto

Public Bike System Company

(Bixi)

Public

Guangzhou

China

Guangzhou Public
Bicycle

Guangzhou Municipal
Government

Guangzhou Public Bicycle

Operation Management Co.

Public

Hangzhou

China

Hangzhou Public
Bicycle

Hangzhou Municipal
Government

Hangzhou Public Transport

Bicycle Service Development
Co.

Public

Shanghai

China

Shanghai Forever
Bicycle

By District

Shanghai Forever Bicycle Co.

Public

Zhuzhou

China

Zhuzhou Jinning
Public Bicycle

Zhuzhou Municipal
People's Government

Zhuzhou Jianning Public

Bicycle Development Co.

Public

Lyon

France

Vlo'v

Grand Lyon

JCDecaux

Private

Paris

France

Vlib

Mairie de Paris

SOMUPI (subsidiary of JC
Decaux)

Private

Dublin

Ireland

Dublinbikes

Dublin City Council

Planning Department

JCDecaux

Private

Tel Aviv

Israel

Tel-o-Fun

FSM Ground Services

Private

as of June 2013

Business Model

92

Fig. 9: Bike-share System Implementing Agencies and Operators, continued

City

Country

System Name

Implementing Agency

Operator Name

Operator
Type

Mexico City

Mexico

Ecobici

District Federal de
Mexico, Ministry of the
Environment

Clear Channel

Private

Barcelona

Spain

Bicing

Barcelona Town
Council Security and
Mobility Department

Clear Channel (subcontracted to Delfin Group)

& City of Barcelona

Private

Taipei

Taiwan

YouBike

Taipei Department of
Transportation

Giant Bicycles

Private

London

U.K.

Barclays Cycle
Hire

Transport for London

Serco Group

Private

Boulder

USA

Boulder B-cycle

City Government of
Boulder

Boulder Bike Share dba

Boulder B-cycle

Non-profit

Chattanooga

USA

Bike Chattanooga

Outdoor Chattanooga

Alta Bicycle Share

Private

Denver

USA

Denver B-Cycle

City and County of

Denver

Denver Bike Sharing

Non-profit

Madison

USA

Madison B-Cycle

City Government of
Madison, Wisconsin

Trek Bicycle Corporation

Private

Minneapolis

USA

Nice Ride

Nice Ride Minnesota

Nice Ride Minnesota

Non-profit

New York City

USA

Citi Bike

NYC Department of
Transportation

Alta Bicycle Share

Private

San Antonio

USA

San Antonio
B-cycle

San Antonio Office of

Sustainability

San Antonio Bike Share

Non-profit

Washington,
D.C.

USA

Capital Bikeshare

Metropolitan
Washington Council of
Governments

Alta Bicycle Share

Private

Business Model

93

4.2 Asset Ownership

The ownership of the assetsprimarily
the stations, terminals, docks, bicycles,
and IT systemis usually determined by
the implementing agency, as well as the
permanency of the assets in the streetscape. The
different assets of a system can have varying
ownership, and the assets may be shared,
transferred, or licensed. For example, the
government might finance and own the station,
docks, and terminals, and license the IT system,
while the operator owns the bicycles. Another
arrangement is one in which the operator owns,
supplies, and operates all of the infrastructure,
and the city provides the space for the stations.
Control of the bike-share system is closely
bound to asset ownership: the owner
determines the investment, and thus the quality
of the system. If a governing body does not

want to make a significant capital outlay, it

risks creating a system in which it does not
have much control over the quality (life span)
of those assets. However, if the operator invests
in the infrastructure, it will have a greater
incentive to maintain it.
Decisions about asset ownership and about
who should make the initial investment should
be guided by the lifetime of the asset, as that
typically guides the contracting period. For
bike-share systems, the average life span of a
bike is three to five years, while the stations
typically average between ten and twenty years.
The bicycles could also be considered part of
the operational costs instead of assets, but this
will have consequences for the financial model.
Most agencies and companies will choose to
consider the bicycles as fixed assets.

In Taipei, Taiwan, bicycles

are donated to the
city by local company
Giant as part of Giants
corporate responsibility
program. Giant operates
the program under
concession.
CARLOSFELIPE PARDO

Business Model

94

Initial funding for

Chicago's Divvy came
from federal grants for
projects that promote
economic recovery, reduce
traffic congestion and
improve air quality, as well
as additional funds from
the citys tax increment
financing program.
CHRTISOPHER VAN EYKEN

4.3 Contracting Structure

Decisions about asset ownership will shape the
contracting structure. There may be separate
contracts with the suppliers of each of the
various components of the bike-share, which
can include the following:

Hardware

Software

Operations

Advertising on the bike-share system

Marketing and public relations

Bundling of the contracts can bring simplicity,

with the government having to manage only
one contract, thus focusing accountability on
a single entity, but in some situations, signing
separate contracts can be a better choice.
Separate contracts help mitigate the risk that
accompanies reliance on a single entity and
allow the government to contract with an entity
that specializes in the requested service. For

Business Model

instance, if the smart-card system and payment

mechanism are integrated into the citys larger
public transport system, that operator will be
contracted to expand into bike-share and will be
responsible for payment and customer tracking,
while another operator will be contracted for
operations. In Paris and Mexico City, contracting
is essentially a complete concession of the
entire system to a single contractor.
The initial provision of infrastructure can
be packaged with the operations contract or
carried out as a separate contract. Combining
infrastructure and operations provides an
incentive for the contractor to supply highquality infrastructure, so as to minimize
maintenance costs over the life of the contract.
However, given the large variation in the
depreciation time of the hardware systems
stations, terminals, and the control centerit
often makes sense for the city to procure
these systems and issue a separate contract
for operations. Creating separate contracts
for infrastructure and operations also can
reduce implementation time, as was the case in
Barcelona (Obis 2011).

95

JC Decaux operates the

Vlib bike-share, and
is compensated by the
outdoor advertisements it
is able to place, like here,
on a bus shelter.
LUC NADAL

The duration of the contracts that require

investment into infrastructure are usually tied
to the life span of that infrastructure, to allow
for depreciation of the asset and a chance to
obtain a return on the investment before having
to invest in recapitalization. In London, the
contract for the bike-share system is six years.
The operations and advertising on the
bike-share system contracts coincide well with
the lifespan of a bicycle, which in bike-share
systems is three to five years. Recapitalization
of the fleet occurs after that. This is long
enough to create an incentive for the operator
to procure high-quality bicycles, but short
enough to give the implementing agency the
flexibility to find a new operator in the event
of lackluster performance. This also creates
potential for profitable branding on the bicycles
and advertising possibilities. Generally, though,
keeping revenue-generating advertising
separate from operations is recommended for
transparency reasons and to keep the operator
focused on the core functions of bike-share.
Since the station and IT infrastructure are
expected to last beyond the initial operations
contract, the implementing agency should
ensure that all the pieces of the bike-share
system work together, especially the software

Business Model

and the hardware. In the case of software,

the rights to the use of the software and the
data should be retained by the city after the
operating contract is over, and ideally the
system is designed as open source, meaning
that there is universal access via free license to
the product's design or blueprint.
There are three main types of contracting
structures, as defined by the ownership of the
assets:

Publicly owned and operated:

The government owns the assets and
provides the services.

Publicly owned and privately operated:

The government owns the assets but
contracts a private entity to run the services.

Privately owned and operated:

The private entity owns the assets and
provides the services.

Regardless of the structure, in all cases, the

government, through the implementing agency,
still oversees the system and is responsible
for managing the contracts and monitoring the
level of service.

96

4.3.1 Publicly Owned and Operated

Under this type of contracting structure, the
government plans, designs, implements,
and operates the bike-share system. The
government also owns all the assets of the
system, and the financial risk lies entirely with
the city. The implementing agency would then
most likely become the operator, or operations
could be contracted out to a parastatal or
another government agency. The greatest
advantage to this structure is that one entity
is responsible for the planning, procurement,
implementation, operations, and future
expansion of the system. The downside to
this type of business model is the potential
inefficiencies that occur when a governmentowned entity pursues an endeavor that private
industry might do more efficiently.
In Germany, DB Rent (a subsidiary of the
national train system, Deutsche Bahn) operates
the Call-a-Bike system in cooperation with
the city, and the system currently operates in
more than sixty cities in the country. In this
model, the public authority usually creates an
internal entity to manage the entire project,
including station siting and details of network
development, operational planning, fee
structuring, and collection and marketing.
The advantage to this type of organizational
structure is that the public authority can
prioritize the desired goals of the system
ideally, that it supports the larger public
transportation systemover other incentives,
such as profitability. The disadvantage of
this approach is that it requires more public
resources, and the public body also assumes
operating efficiency and risk.

Business Model

4.3.2 Publicly Owned and Privately

Operated
This type of contracting structure means that
the government owns the assets and a private
entity provides the services. This can be a
simple fee-for-service model, like in Barcelona
or in Shanghai, China, where the fee is based
on the number of bikes in the system. The
procurement of bicycles for the system can
be done by the government or it may be the
responsibility of the operator. All other assets
software, control center, stationsare owned
by the government.
The advantage of the publicly owned,
privately operated model is that the private
operator manages all logistics, the public
owner has some control during key phases of
the project, and operating details and system
risk are not the responsibility of the public
body. If the operator has no investment in
the infrastructure, it is easier to do shorter
contracts, like in Barcelona, where the contract
is negotiated every year. This offers more
flexibility for the city, but also requires more
work (issuing tenders, negotiating, signing a
contract every year).

Hamburg has one

of Germanys most
successful bike-shares,
with 130,000 registered
users, 1,650 bikes, and
125 stations. The system
is run by DB Rent, a
subsidiary of the national
train system.
MICHAEL KODRANSKY

97

4.3.3 Privately Owned and Operated

Under this type of contracting structure, a
private entity owns the assets and provides the
services, while the government provides the
land on which to put the stations. In privately
owned and operated system arrangements, the
government will set standards for the system
and put it out to tender. The government grants
the rights, in the form of legislation and street
space, for the system, but the capital assets
are owned and the operational costs are borne
by the operator. This approach avoids taking
money from city coffers. Some cities even ask
the operator to pay a fixed fee or share revenue
with the city.
Privately owned and operated systems
do have some risks associated with them,
particularly regarding conflicts of interest

Business Model

and balancing the citys need for widespread

distribution against the private operators
desire to optimize revenue. Normally, the
private operator is interested in high-revenueproducing areas or neighborhoods, while the
city may have a greater interest in making sure
the system has a wide coverage that includes
low-revenue-producing areas. In the original
agreement, high-revenue areas should be
complemented with a few lower-revenue areas
to create an agreement that serves both parties.
Usually, as the system expands, the number of
high-revenue areas decreases and the number
of low-revenue areas increases, making it
harder for an operator to get an attractive return
on investment. This can be solved by adjusting
the revenue model.
One version of this structure is the BOT

Nice Ride, in Minneapolis,

USA, is owned and
operated by an
independent nonprofit of
the same name.
TRACKTWENTYNINE (CREATIVE
COMMONS)

98

model: build, operate, and transfer. At the end

of the contract, the private company transfers
the ownership of the assets to the government.
The problem with such arrangements is that
most of the entities interested in this type of
arrangement are not public transport operators
looking to provide a customer-oriented
transport solution. The result is subquality
infrastructure and a less-than-efficient system
for the user. There is no incentive for the
operator to construct or innovate any aspect
of the system that will last longer than the
agreement, because the operator will forfeit
the assets when the agreement terminates.
It is probable that the operator will write off
the assets from the onset and take a greater
interest in its return on investment, which
comes from advertising revenue.

Bike-share is known for bundling bikeshare and outdoor advertising contracts by

contracting companies like JCDecaux or Clear
Channel. These firms operate public bikeshare systems in exchange for exclusive (or
near-exclusive) rights to the citys outdoor
advertising space. Combined contracts such as
these are often less cost-efficient than separate
contracts. However, they mitigate the financial
risk from the citys perspective (Obis 2011) and
enable the city to open a bike-share system
without having to create a line item in the
budget for it. Nonetheless, the disadvantages
to this approach include loss of advertising
revenues, the risk of problems with the public
due to the increase in outdoor advertising, and
the fact that it is hard for the public agency
to evaluate levels of service compared to

Flat Fee per Bike Experience in Shanghai

Shanghai Forever Company, which
operates the bike-shares in Shanghai and
Zhangjiagang, charges the government a
flat rate per bike per year to supply and
manage the system. The company does not
actively use advertising revenue to support
the system, although such an option will be
available in the future. The advantage of this
model is that the city has a fixed contract,

Business Model

making it easier to budget for the system.

The disadvantage is that the operator is
incentivized to oversupply the system with
bicycles to raise its revenues. Additionally,
there is very little incentive for the operator
to provide an efficient system and to manage
redistribution well, since operations are not
linked to service levels, but to the size of the
system deployed. ITDP CHINA

99

Contracting in Wuhan, China

In Wuhan, Xinfieda, a private company, received a
BOT contract with no stipulations or service levels
on the quality of the hardware or the operation of
such hardware. The company was not obligated
or incentivized to provide a quality 3rd generation
system or to operate the system efficiently. The result
in Wuhan is that few stations had bicycles in them, as
most have been permanently taken by residents, but
the advertising boards are still up and functional.

LI SHANSHAN

investment. Such contracts can be successful,

but the advertising revenue should be
contractually separated from the service-level
agreements to operate the bike-share system.
Paris is the classic case study for this type
of bundled contract. JCDecaux, in exchange
for outdoor advertising rights including at bus
stops, on public announcement infrastructure,
and other urban components, operates Vlib,
and it made the initial investment in bikes
and stations. The company publicly claims it
is losing money from Vlib. However, since
JCDecaux is privately held, it does not have to
report its profits, and there was no provision
in the contract to mandate that that it must.
Therefore, there is no real way to verify the
companys statements. The city is bound to a
considerable extent to JCDecauxs demands
if the city wants the company to provide a
certain level of service. The income generated
by Vlib, estimated at 30 million annually,

Business Model

or approximately US$40.4 million, goes to the

citys general budget, so operating revenues
are excluded from the business plan (Nadal
2007). This can also be seen as an advantage,
although assigning bike-share revenue to the
general budget may not always be the best
option, as then that money does not necessarily
get reinvested in the system or sustainable
transportation more generally.
New York Citys Citi Bike system is an example
of a privately owned and operated system.
The city considered what is called a franchise
model, in which the outdoor advertising
contract is tied to the bike-share system, but
that would have needed legislative action that
would require a longer timeline than the city
wanted. The city decided to focus on the higherdemand areas (as identified by population
density), so that the operating revenues,
combined with sponsorship, would cover the
operational costs. Citi Bike is operated by NYC

100

Bike Share, a fully owned subsidiary of Alta

Bicycle Share, and all funding for operations
comes from sponsorship and user fees. Citibank
provided New York Citys bike-share with $41
million to sponsor the system over five years,
and received exclusive naming and branding
rights. MasterCard provided $6.5 million for a
five-year sponsorship and was named Citi Bikes
Preferred Payment Partner, its logo displayed
prominently on the station terminals.
Alta entered into a service-level agreement
with New York Citys Department of
Transportation. Alta must ensure the stations
are clean and functional, and bicycles must
be properly maintained and fit for use by the
public. If this quality is not maintained, the
company will be subject to fines. Alta/NYC Bike
Share was responsible for finding corporate
sponsors to finance operation of the system.
While sponsorship revenue goes directly to
Alta, the revenue from user fees is split between
the City of New York and NYC Bike Share.

Similar to New York, Rio de Janeiros Bike

Rio is privately owned and operated, but
is overseen by the city office that defines
concessions in the mayors cabinet and by the
secretary of the environment (known as SMAC).
Sertell, the system operator, won the tender
for a five-year contract, beginning in 2008,
that bundles infrastructure and operations.
The concession, similar to that of Vlib, is for
mobile advertising rights. SMACs Technical
Working Group on Bikes just finished reviewing
the 20082013 contract and the system, and
has defined the new parameters for the new
tender that went public in May 2013.

4.3.4 Types of Operators

As discussed above, operators of bikeshare systems can be government agencies,
parastatals, or private entities, including
both for-profit companies and not-for-profit
organizations. Each has its own pros and cons
(see table below).

Fig. 10: Comparison of Strengths and Weaknesses of Types of Operators

Strengths

Weaknesses

Examples

Government

Maintains control of legislative

and public assets necessary to
make bike-share successful;
Has no ulterior motive other
than to operate a high-quality
system

Initial lack of expertise in bicycle sharing

Buenos Aires
(as of June 2013)

Public Transport
Authority

Has experience in managing

transport-related services;
Facilitates cost sharing with
existing assets such as
customer service, maintenance
personnel and depots

Difficulty in accessing and working with

other transport providers because they
are seen as competitors; Bike-share
system may expand such that it needs
its own customer service, maintenance,
and depot facilities

DBRent
(German systems)

Private Sector

Generally achieves a high level

of efficiency

Profit-oriented, which can conflict with

maximizing the utility of system for
the user; May reduce its efficiency due
to financial constraints or suboptimal
contractual conditions; Limited ability to
push for policy and planning changes in
government

Santiago, Paris,
London, Washington,
D.C., Boston, New York

Not-for-Profit

Prioritizes the utility of the

bike-share system to the user

Frequently financially constrained;

Normally below-average business focus,
leading to financial unsustainability

Denver, Minneapolis

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101

4.4 Managing Contracts

Through Service Levels
Service levels should be included for system
operations (hardware and software), customer
service, maintenance, redistribution,
marketing, and reporting. Each service level
normally identifies an optimal level, and
then a variance within which performance is
acceptable. Beyond the variance, the operator
is penalized if it negatively affects the system
and rewarded if it positively affects the system.
Offering rewards as well as penalties allows for
flexibility in how an operator can make revenue
from the system.
For example, an operator of a recently
launched system is having a hard time keeping
the system online in accordance with the
software service-level agreement due to initial
glitches in the system. This causes the operator
to fail to meet the service level in this category.
The operator does, however, far exceed the
service level for membership. Between the
service level for software, which the operator
does not meet, and for membership, which
it exceeds, the operator is able to secure a
decent revenue while working on the service
levels where there are problems. Service levels
should be designed to create incentives for an
operator to increase its revenue while doing an
outstanding job. They should not bankrupt the
company.
While the government sets the quality and
service standards when the contract is signed,
it should work with the private sector on the
best way to achieve the desired service level.
It is important to look at the capabilities and
limitations of the system and set the service
levels realistically. When planning a system,
many service levels will be estimates or best
guesses, and will need to be re-evaluated
as the system goes online. Service levels
should be an evolving matrix of give-and-take

Business Model

between the operator and the authority or

governing body. Service levels that prove to
be unreasonably high should be lowered to
be more realistic, while those that are vastly
exceeded should be adjusted, or should have
ceilings regarding compensation.
There are two basic principles when
monitoring service levels: first, set realistic
service levels that can be monitored at little
expense to the authority. Setting service
levels that cannot be easily monitored leads
to difficulty calculating the compensation
to the operator, or to non-enforcement. This
ambiguity starts off small but will over time
create problems in the relationship between
the operator and the authority. Second,
an open-book policy is best between the
authority and the operator. The authority
should have access to all data collected and
transmitted by the system, and should know
how much revenue comes from the different
sources. Audited financials should be shared
by the operator with the authority so there
is a clear picture of excessive profit
or loss.
The contractual relationship between
the operator and the governing body with
the associated service levels creates the
performance-management system. The
performance-management system is usually
based on a weighted points system whereby
service levels that are very important, like
the systems being online, are weighted more
heavily than those that are desirable but
not essential, such as marketing efforts. By
weighting the service levels, the governing
body can create an incentive to the operator
to put resources toward meeting service
levels that the governing body feels are most
important to serve the user.

102

In the case of Ecobici, Clear Channels

proposal (which was initially accepted) set a
minimum level of service of 85 percent with two
indicators:

Docking Level of Service (DLS): the

probability that a user will find a free dock in
the station.
DLS = 1

Total time of full stations in a month

Total service time in a month in the system

Bicycle Level of Service (BLS): the probability

that a user will find a bicycle in the station.
BLS = 1

Total time of empty stations in a month

Total service time in a month in the system

The limitation of this measure is that certain

difficult stations (for example, those in hilly
locations, like some in Barcelona) can remain
perpetually full or empty without exceeding
the limits of level of service. Recommended
indicators should consider even station or
group-of-stations level-of-service indicators
to prevent this.

Business Model

103

Sample Service-Level Indicators from Londons Barclays Cycle Hire System

Below is a sample of the service-level indicators
Transport for London uses to manage its bikeshare system. This is not a comprehensive list,
and is meant to illustrate the types of servicelevel agreements needed, and how one city

chose to measure them. These all come directly

from the service level agreement documents
for Londons bike-share (Transport for London
August 2009).

Customer-Service Indicators
Indicator

Sample Benchmark

Data Source

Registration applications processed

99.5% processed within three days;

90% within one day

Operator records

Customer complaints processed

For post, 99.9% processed within ten

days; for e-mail/web, 99.9% within
five days; for all complaints, 95%
within three days

Operator records

Number of valid customer complaints

Fewer than eleven per month

Operator records

Call-center abandon rate

97% of calls not abandoned

Call center IT system

Call-center queuing time

99.9% of calls answered within 180

seconds; 90% of calls answered within
twenty seconds

Call center IT system; spot checks

Percent of the time that the call center

is available

99.9%

Call center IT system

Maximum time on a single day that the

website is not available

Twenty minutes

Real-time IT feed

Percent of time that the website is

available per month

99%

Real-time IT feed

Overall Customer satisfaction

Industry benchmark

Customer interviews

Indicator

Sample Benchmark

Data Source

Time required to check out a bike

95% of transactions executed in less

than fifteen seconds

Spot surveys

Number of data protection breaches

Zero

Operator records

Terminal performance

99% of transactions executed in less

than ten seconds

Real-time IT feed

Smart-card performance at the

terminal

99.5% of transactions executed in less

than four seconds

Real-time IT feed

Smart-card performance at the dock

99.5% of transactions executed in less

than one second

Real-time IT feed

Payment processing

98.5% of payments processed on the

same day

Real-time IT feed

IT System Indicators

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104

Maintenance Indicators
Indicator

Sample Benchmark

Data Source

Minimum percentage of total cycle

fleet available at 6 a.m.

100%

Real-time IT feed

Minimum percentage of total fleet

available during the day

95%

Real-time IT feed

Percentage of cycles repaired within

four hours of being flagged for repair
by a customer

95%

Real-time IT feed, spot checks

Percentage of cycles without major

dust accumulation or grease stains

95%

Spot checks

Terminal availability per day

99%

Real-time IT feed

Indicator

Sample Benchmark

Data Source

Percentage of the time that highpriority stations are empty during

peak hours (710 a.m. and 47 p.m.)

6%

Real-time IT feed

Percentage of the time that highpriority stations are empty during

off-peak hours

3%

Real-time IT feed

Percentage of the time that lowpriority stations are empty during

peak hours (710 a.m. and 47 p.m.)

23%

Real-time IT feed

Percentage of the time that lowpriority stations are empty during

off-peak hours

8%

Real-time IT feed

Minimum percentage of total cycle

fleet available at 6 a.m.

100%

Redistribution Indicators

Business Model

Real-time IT

105

Guangzhou uses bikeparking areas in lieu of

docks and terminals at
larger demand stations.
KARL FJELLSTROM

Introduction

Sub

106

section five

FINANCIAL
MODEL

Introduction

Sub

107

The financial model puts dollar amounts

on both the responsibilities (expenses)
and rights (revenue) of each of the
entities in the business model, including
the government. The expectations
enumerated in the financial model must
also be found in the contracts.

Financial Model

Most of the capital costs

of Chinas bike-share
systems, including
Zhuzhous, are paid for
by the government.
KARL FJELLSTROM

108

5.1 Capital Costs

and Financing
The capital costs include the assets, such as bicycles, stations (including docking spaces and
terminals), IT system components, control center, maintenance equipment, and service and
redistribution vehicles. Working capital, the costs of running the entity before revenue starts
coming in, including pre-launch staffing, installation, marketing, website creation, and launch
expenses, can also be capitalized.
Following is a more in-depth look at the main sources of capital costs.

Fig. 11: Bike-share System Costs

City

Country

System Name

Capital Cost
(Per Bike)

Replacement
Cost of Bike

London

U.K.

Barclays Cycle Hire

$4,000

$1,435

Paris

France

Vlib

n/a

$809

Barcelona

Spain

Bicing

$3,150

n/a

Montreal

Canada

Bixi

$4,000

$1,270

Washington, D.C.

USA

Capital Bikeshare

n/a

$1,000

Guangzhou

China

Guangzhou Public Bicycle

n/a

$69

Hangzhou

China

Hangzhou Public Bicycle

n/a

$74

Zhuzhou

China

Zhuzhou Jianning Public

Bicycle

n/a

$261

Mexico City

Mexico

Ecobici

$3,400

n/a

Rio de Janeiro

Brazil

Bike Rio

$1,810

$550

New York City

USA

Citi Bike

$4,750

n/a

Denver

USA

Denver B-Cycle

$4,250

n/a

Minneapolis

USA

Nice Ride

$4,487

$1,000

Madison

USA

Madison B-Cycle

$5,000

n/a

Boston

USA

Hubway

n/a

$950

Financial Model

109

5.1.1 Bicycles

5.1.2 Stations

The bicycles themselves are a small component

of capital costs. Bicycle costs vary immensely
around the world. Some systems use bicycles
that are almost off-the-shelf, with a locking
mechanism attached, while others use specialty
bicycles with proprietary parts and GPS
tracking. The cost of a single bike can range
from as little as US$100 in Asian systems to
as much as US$2,000 for bikes with GPS and
satellite-operated unlocking systems.

Stations, specifically the docking spaces,

often represent the single largest capital
cost in many systems. However, a greater
number of docking spaces helps reduce
operating costs by reducing the need for
redistribution. High-tech terminals are not
required at every station in most system
designs where the customer can directly
check out bikes from the docking space,
but should be included in medium and
large stations. Having a terminal with static
information or to identify the station is still
recommended. Small stations in residential
areas can consist simply of docks, forgoing
some of the customer services in favor of
decreased costs and a smaller visual impact
on the cityscape.

Many of the bikes in

Asian systems, such as
Hangzhou (above), are
cheaper and have fewer
features than those of
other systems, such as
Washington, D.C. (below).
KARL FJELLSTROM

Financial Model

110

5.1.3 Software
Software can be purchased outright, developed,
or licensed, and each option will have a
different impact on the the capital costs and
the longer-term operational costs. Developing
software is the most expensive option, though
the intellectual property can often bring
medium-term return on investment through
the sale or licensing of the software to other
systems. Buying off-the-shelf software has
become popular at a regional level. Although
this is initially more expensive, it is a one-time
cost, with perhaps an annual service cost.
Many North American systems have bought
their software from a single Canadian supplier,
8D, because language and needs are similar
throughout the region. Another option is
licensing software. Licensing software can be
a good solution to help offset capital costs,
but can be a cost burden on the system down
the line. The Medelln bike-share system used
licensed software from the system in Santiago
for a year before developing its own software.
With licensed software, the software company
is responsible for making sure that the software
continues to be updated with the latest security
and advances in technology. Sometimes the
software is bundled into the costs of the
hardware, as is often the case in China.

Financial Model

top
Terminals in the Vlib
system in Paris accept
payments by credit card.
LUC NADAL

bottom
Ecobici stations in Mexico
City have touchscreen
terminals.
AIMEE GAUTHIER

111

5.1.4 Control Center, Depot, and

Maintenance and Redistribution Units
The control center is where the central
management of the bike-share system is
housed, the depot is where bikes are held
while being serviced or stored, and the mobile
maintenance unit is the unit responsible for
responding to requests for repairs. Bikeshare depots and mobile maintenance units
present an opportunity for cost sharing, as
most communities have depots for buses or
other public goods and services, as well as
maintenance staff. Cost sharing can greatly
decrease capital investment in such facilities
and personnel. Depots and maintenance areas,
however, need to be completely secure to
prevent loss of inventory, such as bikes, parts,
and tools. Guangzhous bike-share uses the
Guangzhou bus companys depot.
Redistribution vehiclesoften flatbed trucks
or trailers carried behind vansare a significant
investment. The Vlib system in Paris has what
is likely the most creative redistribution vehicle:
a barge that carries bicycles up the Seine.

top
The control center in
Foshan, China.
LI SHANSHAN

middle
A simple redistribution
truck in Shenzen, China.
LI SHANSHAN

bottom
Vlib in Paris uses a
trailer with no rails
for easier loading and
unloading.
HOTZEPLOTZ (CREATIVE COMMONS)

opposite
A bike is unloaded from
a Nantes bike-share
redistribution van.
KARL FJELLSTROM

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112

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113

5.2 Operating Costs

A bike-share systems operating costs reflect
the systems size and sophistication. These
costs include staffing, replacement parts,
fuel for service vehicles, redistribution costs,
marketing, website hosting and maintenance,
electricity and Internet connectivity for stations,
membership cards, warehouse and storage
insurance, and administrative costs. Depending
on the contracting structure, the operating
costs may also include debt service.
How operating costs are reported varies
widely, from per-bike to per-station to perdock to per-trip. As stated before, this guides
recommends evaluating the cost efficiency of
a system after it opens by looking at operating
costs per trip. As with most transit systems,
the goal of bike-share is to attract and move
as many people as efficiently as possible, and
a systems operating expenditure should be
based on the number of people, as expressed in
the number of trips, using it.
Most often, annual operating costs are
reported as cost per bike, but that is not
recommended as the number of bikes can
vary on a day-to-day basis due to repairs and
rebalancing. In an analysis of U.S. bike-share
systems, a per-dock basis was used in order to
have a more stable basis for comparison. That
report found the average operating cost per
dock, per month, was between $90 and $120.

The variation in this operating cost is based

on intensity of ridership in the system, service
levels in the contracts (typically, nonprofit
systems do not have contracts mandating
service levels or monthly reporting), specific
roles covered by the operator (for example,
in Washington, D.C., the operator does not
undertake marketing, but the operator in
Boston does, and nonprofits that manage bikeshare systems must undertake sponsorship
fundraising themselves), profit margin of
operator, and, theoretically, the scale of the
system. The operating expense numbers may
also be skewed in some cases if systems were
under expansion, and there were new station
installation costs embedded in the operating
costs (Cohen 2013).
In addition to the variation in how operating
costs are reported, the expenses included in
those numbers are equally varied. As seen
in the above examples of U.S. systems, the
roles and responsibilities, and therefore the
expenses, of the operator vary widely. Reported
values may not be reliable, since operators
may report inflated figures or may not release
them at all. For example, estimates of Vlibs
operating costs vary from 3090 million
(US$40120 million) per year. These costs are
far from marginal, so strong financial planning
is needed, as with any transportation system,

Fig. 12: Bike-share System Annual Operating Cost Per Trip

City

Country

System Name

Average Operating Cost Per

Trip

London

U.K.

Barclays Cycle Hire

$4.80

Barcelona

Spain

Bicing

$0.86

Montreal

Canada

Bixi

$1.27

Washington, D.C.

USA

Capital Bikeshare

$1.52

Mexico City

Mexico

Ecobici

$1.28

Denver

USA

Denver B-Cycle

$3.22

Minneapolis

USA

Nice Ride

$1.52

Boston

USA

Hubway

$3.09

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114

to ensure the financial success of the system.

After conducting the rough estimation, a city or
operator will need to do a detailed examination
of the real costs, taking into account system
design and asset ownership. This model should
include the costs described in the following
sections.

5.2.1 Staffing
Staffing needs include administration and
management, maintenance, redistribution,
and customer service. Staffing of a public
bicycle system is often heavily dependent on
cultural norms and the cost of employment
in a country. Most systems in North America,
where staffing is expensive, minimize staff
through automation. In systems that are not
fully automated, staffing costs will increase the
operating costs. There is generally an economy
of scale in automated systems. However, this
is not true of manual systems. For example,
every time a new station is added in Santiagos
manual system, so is at least one staff position.

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top
Quick repairs are often
done at the station,
as seen here in Vlib.
LUC NADAL

bottom
For preventative
maintenance, bikes
are brought back to
workshops, like here in
Medelln, Colombia.
JESUS DAVID ACERO

115

5.2.2 Redistribution
Redistribution is broadly defined as the
rebalancing of bicycles from stations that
are near or at capacity to stations that are
close to empty. Successful redistribution is
critical to the viability of the system from the
customers perspective, and redistribution is
one of the greatest challenges of operating
a bike-share system, accounting for as
much as 30 percent of operating costs in
European systems (Obis 2011). If an operator
has an adequate IT system, redistribution
becomes predictive, and is better thought
of as pre-distributionthe movement of
bicycles to stations where users will need
them and away from stations where users
will be dropping them off. While a bike-share
system may operate twenty-four hours a day,
most of the trips occur between 7 a.m. and
9 p.m. During those periods, redistribution

may be necessary, especially for stations that

experience high peak-demand. For example,
most systems have found that stations at
the tops of hills are often empty, as people
will check out a bike and ride down the hill,
but will rarely ride up the hill to park at that
station. Many systems, however, try to do
most of the redistribution at night, when
there is less traffic and it is more efficient.
A system for redistributing bikes to the
points of greatest use is essential, taking
into consideration initial data and modeling
and expectations of ridership. The operator
should not expect to get this perfect from
the start, but rather should make the best
plan according to available data and refine
that plan once the system is implemented.
Fortunately, with RFID technology, the data
will continually become more accurate as
more users enter and exit the system.

A redistribution van in
Barcelona is taking bikes
to empty stations.
LUC NADAL

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116

5.2.3 Maintenance
Maintenance is another large line item under
operational costs. Maintenance includes
the stations and bicycles, and covers both
preventative and repair activities. Maintenance
of the bicycles, terminals, and station can be
as simple as wiping them down and sweeping
or as complex as lubricating the hubs of the
bicycles and fixing the electrical equipment
in the terminal. General repairs to the docks
and terminal include replacing torn decals or
removing graffiti, while bicycle repairs include
fixing tire punctures, broken chains, or faulty
brakes. Annual maintenance for Vlib and
Velov is estimated at about US$1,000 per bike,
while the German system operator estimates its
annual maintenance costs at US$868 per bike.
These figures do not include bike replacement.

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Bicycle maintenance and repair are critical

to the reliability and image of a bike-share
system. For that reason, repair centers must
be located strategically, and there must be a
strong logistical plan for moving bikes to and
from those centers. Mobile maintenance units
can also be incorporated into redistribution to
increase effectiveness. Paris uses a barge to fix
and maintain bicycles while redistributing them
from the lower end of the city to the higher
end. Montreal has created a social company
(Cyclochrome) that maintains the bicycles and,
in the process, gives technical training to teens
who have dropped out of school.
Maintenance protocols should be spelled
out in the service-level agreements in the
contract between the implementing agency
and the operator, including the penalties for

A member of Santiagos
bike-share staff services
a bicycle.
CLAUDIO OLIVARES MEDINA

117

Turning the seat around

flags maintenance staff
that the bike needs to be
serviced.
CARLOSFELIPE PARDO

noncompliance. Generally, the implementing

agency will ask the operator to develop
a maintenance and repair protocol that
both parties find acceptable. This protocol
streamlines service to guarantee that users only
experience bikes in top form at all distribution
points during operations. For example, the
contract should stipulate how long a broken
bicycle may be left at a station, or how long
a terminal or docking space can be out of
commission before the operator faces a penalty,
as well as ensuring that the contractor provides
data on repairs. For bicycles, six to twelve hours
is appropriate, depending on other factors. In
the case of damaged bicycles, the operator
would normally fix minor repairs on-site, while
collecting bicycles that need major repairs to be
done at the depot. Toward the end of the bikes
life span, it may be more cost-effective to buy a
new bike than repair it, as the cost of replacing
parts on an older bike may be greater than the
worth of the now-depreciated bicycle.
Flagging bikes for maintenance can be done
in a variety of ways, from high-tech to low. One
low-tech method is to ask users to turn the seat
around on a bike that needs a repair so that the
maintenance or redistribution truck can easily
identify it, as is done in Seville, Spain. Another
method is to allow for notification through the
docking station or terminal. A user presses a
button on the terminal or touch screen that
alerts the system that there is a problem with

Financial Model

the bicycle. Once a user reports a faulty bicycle,

that bicycle is taken offline (meaning it cannot
be checked out again) and the operations
headquarters is notified. The downside to this
high-tech solution is it can be a magnet for
saboteurs who might report a whole station as
damaged, preventing users from checking out
bicycles that are in fact perfectly fine.

5.2.4 Control and Customer Service

Center
The cost of the control and customer service
center depends on the goals of the system
and the environment in which it operates. The
control center is critical to operations and
management, and includes staffing costs and IT
costs. The bigger variable in costs will be how
the system decides to handle customer service.
Some systems try for full automation,
limiting customer service to nothing more than
a website and social media. Others choose to
have a fully staffed customer service center.
The operating cost is completely dependent
on the type of service the system desires to
provide. Normally, fully automated control and
customer service centers are inexpensive to
operate, while fully staffed establishments can
be a significant operational cost burden but
might provide more user-friendly, personalized
service and create employment. Regardless of
the format, the system will require some outlet
for customer concerns and questions.

118

5.2.5 Marketing and Customer

Information
Another important operational cost to
consider is promotional material and activities
associated with running the system. These
can range from simple printed information to
elaborate campaigns across various media.
This component is particularly important
during the first six months (defined as the two
months prior to launch and four months after
launch) and whenever there are any changes to
operation or expansions of the system.
Marketing activities can include an interactive
website, social media sites, a blog for users,

Financial Model

and a host of other technological elements that

can engage people with the system and provide
useful information for both the user and the
operator.
Membership campaigns are initiatives to
increase membership and can involve multiple
stakeholders with different objectives. For
example, a government might be interested in a
safety campaign, while an operator is interested
in increasing membership because annual and
short-term membership numbers are often tied
to service levels. A coordinated safety campaign
and membership drive can allow both to
achieve their goals while sharing the costs.

In many cases, users first

learn about the system
through the system
website.
SCREENSHOT FROM WWW.BICING.CAT.

119

At some Ecobici stations

in Mexico City, signs direct
the customer to nearby
stations, giving the station
name and distance. These
signs are at a lower height
than most street signs.
AIMEE GAUTIER

5.2.6 Insurance
(Anti-Theft, Accidents, Vandalism)
Riding a bike presents a level of risk to the
rider, and the user of a bike-share system has
engaged in an implied contractual relationship
with the system (and/or the operator), putting
the system/operator at potential risk of legal
liability. For that reason, it is strongly advised
that a carefully crafted conditions-of-use
document be included in the contracting for
the system. However, accident insurance is
also important, and some sort of anti-theft
insurance is also advisable. The cost of this
insurance must be part of the operating
budget for the system, and system planners

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should seek advice from trusted legal counsel

to decide what coverage and coverage levels
are necessary. Some operators estimate that
10 percent of the bicycles in the system will
be stolen each year, and integrate the costs
of replacement into their financial models.
Insurance varies from country to country, and
someone with local knowledge on this issue
should be contracted.
System planners may also wish to insure
against vandalism. Perhaps the best insurance
is a strong communications and marketing plan
that generates widespread public acceptance of
the system and encourages locals to take true
ownership of and pride in the system.

120

Cities in which graffitti is widespread should expect that the bike-share

system will be not be immune. Most cities should expect some level
of vandalism and have a plan in place to deal with it as soon as possible
after it occurs. To prevent widespread graffiti, a quick response plan
and a performance measurementfor example, graffiti must be cleaned
within twenty-four hours of being reportedare essential.

The potential for bike

theft or vandalism
should be taken into
account when planning
a bike-share. Bikes, like
the discarded Vlib'
bike (below), stations
and all other property
including signage must
be accounted for and
maintained.
CARLOSFELIPE PARDO, LUC NADAL

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121

5.3 Revenue Streams

The final component of creating the financial model is determining
the revenue streams, including the membership fees and user pricing.
Most systems require some combination of advertising, sponsorship,
membership fees, or tax revenues to cover their operating costs. The
general recommendation is that operators be paid by the government
based on service-level agreements, and not directly from revenue
streams, as it helps with transparency of the system and gives the
government some control over performance.
The utility a public bike-share system provides is often more important
than its revenue potential. Government funding for capital costs and
operations makes sense in light of the fact that bike-share is part of the
larger public transport network, and when all internal and external costs
and benefits are considered, it is probable that bike-share will have a
lower per person cost than any other public transport option. In Europe
and various cities in the developed world, public transport is generally
subsidized.
The financial model must be clear on where any revenue generated
through the system will go, and this must be clearly defined in the system
contracts. In Paris, all municipal revenue from the Vlib system goes
into the general budget, while operator JCDecaux retains advertisingrelated revenues, estimated at 60 million (US$80 million). In Barcelona,
operator Clear Channel receives 1118 million (US$14.423.6 million)
in advertising revenues (Nadal 2007), while Lyons revenue is estimated
at 27.8 million (US$36.5 million) annually.
According to an analysis of U.S. systems, while subscription and
user fees provide a stable revenue source, rarely do they provide
enough revenue to ensure that the system is financially self-sustaining.
Capital Bikeshare comes close, with a 97 percent farebox recovery,
approximately. However, this does not include the marketing expense
that is covered by the city agencies, which could be anywhere from
$200,000 to $500,000 per year, moving this farebox recovery down to
8090 percent. Boston achieves 88 percent farebox recovery, and Toronto
about 60 percent. The gap between system revenues and operating costs
is covered in different ways. The nonprofit systems are sustained through
sponsorships, grants, and advertising. The privately operated systems
fill the gap with either public funding or sponsorships and advertising.
Several systems that have launched or have announced procurement
winners are utilizing no public funding, including the systems in New
York City, Tampa, and Phoenix, and it will be informative to see how those
business models hold up over time (Cohen 2013).

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122

Users of the Bike Rio

system can pay for daily
or monthly passes.
AIMEE GAUTHIER

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123

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124

5.3.1 Government Funding

Parking revenue in
Barcelona, Spain,
is used to fund the
Bicing bike-share
system.
KARL FJELLSTROM

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Government funding is often used to cover

capital costs, in which case the government
owns the assets, and it is sometimes used
for operating costs. Many bike-share systems
cannot cover the operating expenses from
membership and usage fees alone, which is
not unusual for a public transportation system.
Because of this, subsidies may be necessary to
cover operational expenses.
Governments often earmark funds for
sustainable development, innovative initiatives,
or even specifically for bike-share. India is
considering developing a framework in which
municipal corporations (i.e., city governments)
can apply for national funding to implement
bike-share projects. Governments can also use
the general budget or specific transportation
budget to fund the capital investment in bikeshare. This was in the case in Mexico City,
where 100 percent of the capital investment for
bike-share came from the citys general budget.
Given the level of political will needed to make
this happen, the system gained legitimacy
inside the government as a transport system
with its own budget.
Earmarked funds from specific revenue
sources, such as parking fees or congestion
charges, are preferable to general operating
budgets of the department managing the
program. Parking fees and congestion charges
are related to the negative impacts that cars
have on the city, from the road space they take
up to the air and noise pollution they cause.
Redirecting that money to support a sustainable
transport option seems logical as a crosssubsidy to the system. Barcelona is notable for
being the first city to use 100 percent of the net
revenue from on-street parking fees to finance
its public bike-share system, Bicing.
General tax revenues may be needed if
earmarked funds are not an option. Most
Chinese systems are supported completely
by government funds, while a private sector
company operates the system. Unfortunately,
many of the Spanish systems have had to close
operations due to government-implemented
austerity measures in response to the fiscal
crisis. Santiagos system is fully subsidized
by the government. Some systems in China,
such as those in Shanghai and Beijing, are
considering moving to an ad-based revenue
model in the future.

125

Beijings bike-share
system is funded by the
government.
MICHAELVITO (CREATIVE COMMONS)

5.3.2 Loan Financing

Taking out a loan from a bank to cover the
investment in the capital costs is one option. If
bank loans are a source of financing, then the
financial model needs to include debt servicing
in the operational costs, and the revenue model
will need to be able to cover those expenses.
Loan financing is usually reserved for the
private sector.

5.3.3 Sponsorship
Sponsorshipsharing the systems image
and brand with a sponsoring entity, as with
Citi Bike and Barclays Cycle Hirecan help
provide funding to cover investment costs.
In most cases, sponsorship includes some
degree of branding or naming rights, such as
with Barclays Cycle Hire in London or having
the companys logo placed on the stations and
bikes, such as with Bike Rio in Rio de Janeiro.
Different parts of the system can be valued
separately for sponsorship. In the bike-share
systems of Taipei and Kaohsiung in Taiwan,
two bicycle companies, Giant and Merida,
sponsored the bicycles. Rio Tinto sponsors the
Bixi system in Montreal and only has a small
logo on the map boards. In London, Barclays
Bank made a significant investment to get the

Financial Model

naming rights for the system, which was named

Barclays Cycle Hire. Even if a sponsor actually
pays for the assets, the sponsor does not retain
ownership. Usually, the entity responsible for
securing the sponsorship will own the assets.
Sponsorship can offset capital costs,
operational costs, or both. However,
sponsorship can limit the advertising potential
of the bike-share system, so the implementing
agency should assess which is a more favorable
investment. Sponsorship agreements should
consider the future expansion of the bikeshare system and the long-term vision. New
phases could either build on the sponsorship
of the first phase or try to package sponsorships in terms of phases. Future deals tend to
be less valuable than the initial, or opening,
sponsorship. The longer-term viability of
sponsorship as a real financing source is up
for debate. Finally, with sponsorship comes
the risk of affiliation with a private entity.
If the sponsoring entity has image problems
during the sponsorship period, then the bikeshare might suffer from the association. The
long-term risks of such an agreement need
to be evaluated before entering a sponsorship
deal, and a risk mitigation plan should
be developed.

126

5.3.4 Private Investment

Private entities, such as universities or
developers, may be willing to contribute to
the capital cost of stations on or near their
premises, and possibly pay annual operating
costs over a set period. This type of investment
would probably happen in later phases, after
the success of the bike-share has been proven,
but it can occur where there is high demand
already. Property developers may be enticed to
invest in bike-share in order to get stations built
in their area first, if they think it will increase
the marketability of the development. The
implementing agency should either proactively
approach developers and other entities in
areas it has identified for implementation or
expansionand not let developer interest
dictate expansionor give the authority to the
operator to do so.
In Boston, the Hubway bike-share system
has at least eighteen corporate sponsors that

each paid $50,000 to sponsor a station, which

entitles them to to advertise their logos on the
systems website, on ten bikes, and on one
station kiosk. Arlington, Virginia, has already
added station sponsorship for the Capital
Bikeshare system to the zoning process. While
developers can negotiate with county officials
to include full or partial station funding as part
of a transit-related improvements package,
officials have the right to decline if they think
the station wont be used well (MacDonald
2011).

5.3.5 User Fees

There are two types of user fees in most bikeshare systems: subscription fees and usage
fees. Subscription requires the customer to
register and allows them unlimited access for
a certain time perioda day, week, month,
or year. Usage fees are then charged during
the time the bike is in use. Most systems

Rio Tinto, an aluminum

company, is a sponsor
of the Bixi system in
Montreal. The bikes are
also made with aluminum
provided by Rio Tinto.
AIMEE GAUTHIER

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127

Hubway, in Boston, is
partially sponsored by
New Balance.
INSECURITY (CREATIVE COMMONS)

offer the first increment of time during use for

freenormally 30 or 45 minutes. After that, the
fees typically increase exponentially, as a way
to encourage short trips, and thus higher bike
turnover. Typically, the short-term subscription
fees generate the most revenue. In an analysis
of U.S. systems, while annual members took a
large majority of the trips, the casual members
provide roughly 2/3 of the revenue for the
system (Cohen 2013).
System planners must consider the
service-fee structure carefully, since a postimplementation change to the price structure
is likely to cause a public backlash. Some cities
have conducted market studies to understand
the effect of various price structures on usage
and revenue generation, but there has been
little research to date into the price elasticity of
bike-share. Many cities want to keep the price
of bike-share lower than that of mass transit
and car use in order to make it competitive with
those forms of transportation.
Setting user fees requires knowledge of the
habits and average routes that will be used by
the target user groups, as well as of the citys
own criteria, policies, and objectives for the
bike-share system. New York City decided to
initially keep the fees for its system lower than
the price of transit to attract users. The system
in Barcelona is available only to residents, as
users are required to register for an annual
membership, and the system offers no daily or
weekly passes. This decision was made in part
so that the bike-share would not compete with
the multiple bike-rental operations already in
existence in the city.

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Pricing models vary widely. Some charge only

usage fees, such as pay-by-minute (Germanys
Call-a-Bike charges 0.08/minute) and payby-day (the Netherlands OV-Fiets charges
2.85 for twenty hours). Most systems charge
both a subscription fee and a usage fee. The
subscription fee buys the user a free period of
use at first, and then usage fees get charged
after that period elaspes and the bike has not
been returned. Many Asian systems offer the
first hour free. In Rio de Janeiro, users pay
US$5 for a monthly subscription or US$2.50 for
a daily subscription. Both give the user sixty
minutes of free use, with at least fifteen-minute
intervals between uses. After that period,
US$2.50 per additional hour gets charged to
the user.
Long-term subscriptions, usually called
memberships, offer a stable revenue stream
for the system, and the registration process
plays the secondary role of verifying customers
personal and payment information on a regular
basis. To make membership more attractive,
members get either a discounted usage fee or
slightly longer free time periods. Membership
can deter theft and track active users more
accurately by requiring them to update their
user profiles and payment details on a regular
basis. It may also be possible to commoditize
this information and use it to attract sponsors.
Across all the U.S. systems analyzed in
Cohens report, it is consistent that there is a
roughly a 33% / 33% / 33% split of revenues
from annual membership, casual membership
and usage fees. The vast majority of usage fees
come from casual members keeping bikes out
for more than 30 minutes. While approximately
2/3 of revenue for U.S. bike-share systems
come from casual members, annual members
use and create significantly more wear-andtear on system. Many usage fees are accrued
because casual members dont understand the
free 30-minute rule. Should casual members
a better general understanding of the pricing
structure, systems are at risk of losing up to
33% of their revenues (Cohen 2013).

128

5.3.6 Advertising Revenue

There are two main forms of advertising
revenue. One comes from general outdoor
advertising placed in public spaces, such as
on bus shelters, benches, or billboards. The
other is advertising specifically associated
with the bike-share system, placed on the
bikes, stations, kiosks, etc. Many systems
have contracted all or part of the citys outdoor
advertising to the company implementing the
bike-share system. Estimates indicate that
JCDecaux in Paris generates revenues of up
to 60 million (US$80 million) annually from
advertising.

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Linking bike-share operations to the general

outdoor advertising revenue means that
operational expenses will be subsidized by the
advertising revenue, without directly touching
city revenue sources. The problem with this
arrangement is the lack of clarity between the
costs reported and the advertising revenue
taken in by the firm. The lesson learned
from Vlib and other systems with outdoor
advertising revenue contracts is that there
should be separate contracts for outdoor
advertising and for operating the bike-share
system, even if both contracts are given to the
same company. The revenue from all sources
should go into a government or escrow account,
and the operator should be paid based on
service levels. While advertising often comes
under criticism, many systems create very good
contractual arrangements that utilize outdoor
advertising.

Denvers bike-share began

as a free service during
the 2008 Democratic
National Convention,
and the success of the
program inspired its
growth into a full bikeshare system.
PAULKIMO90 (CREATIVE COMMONS)

129

Fig. 13: Comparison of Subscription Fees

Subscription Fees (USD)

City

Country

System
Name

Deposit
amount
(USD)

Annual

Monthly

Weekly

Free Usage Period

(minutes)

Daily

Longterm
Users

Casual
Users

(Members)

London

U.K.

Barclays
Cycle Hire

n/a

$123

n/a

$13

$3

30

30

Paris

France

Vlib'

$199

$38

n/a

$11

$2

3045

30

Barcelona

Spain

Bicing

n/a

$62

n/a

n/a

n/a

30

30

Lyon

France

Vlo'v

n/a

$33

n/a

$5

$2

30

30

Montreal

Canada

Bixi

n/a

$80

$30

n/a

$7

45

30

Washington,
D.C.

USA

Capital
Bikeshare

$202

$75

$25

n/a

$7

30

30

Guangzhou

China

Guangzhou
Public
Bicycle

$49

n/a

n/a

n/a

n/a

60

60

Hangzhou

China

Hangzhou
Public
Bicycle

$33

n/a

n/a

n/a

n/a

60

60

Shanghai
Forever
Bicycle

China

Shanghai
Forever
Bicycle

n/a

n/a

n/a

n/a

n/a

60

60

Zhuzhou
Jianning
Public
Bicycle

China

Zhuzhou
Jianning
Public
Bicycle

$32.68

n/a

n/a

n/a

n/a

180

180

Shenzhen
Public
Bicycle

China

Shenzhen
Public
Bicycle

n/a

n/a

n/a

n/a

n/a

60

60

Mexico City

Mexico

Ecobici

$393

$31

n/a

$24

$7

45

45

Rio de
Janeiro

Brazil

Bike Rio

n/a

n/a

$2

n/a

$1

60

60

Buenos
Aires

Argentina

Mejor en
Bici (as of

n/a

$0

$0

$0

$0

60

60

(Casual
members
only)

(Resident)

$196.09
(Tourist)

June 2013)

Financial Model

130

Fig. 13: Comparison of Subscription Fees, continued

Subscription Fees (USD)

City

Country

System
Name

Deposit
amount
(USD)

Annual

Monthly

Weekly

Free Usage Period

(minutes)

Daily

Longterm
Users

Casual
Users

(Members)

Dublin

Ireland

Dublinbikes

n/a

$13

n/a

n/a

n/a

30

30

New York
City

USA

Citi Bike

$101

$95

n/a

$25

$10

45

30

Denver

USA

Denver
B-Cycle

n/a

$80

$30

$20

$8

30

30

Minneapolis

USA

Nice Ride

n/a

$65

n/a

n/a

$6

30

30

Chattanooga

USA

Bike
Chattanooga

n/a

$75

n/a

$20

$6

60

60

(Casual
members
only)

(Conferences
/ Events only)

Madison

USA

Madison
B-Cycle

n/a

$65

n/a

$30

$5

30

30

Taipei

Taiwan

YouBike

n/a

n/a

n/a

n/a

n/a

30

Brussels

Belgium

Villo!

n/a

$40

n/a

$9

$2

30

30

Tel Aviv

Israel

Tel-o-Fun

n/a

$78

n/a

$17

$5

30

30

Boulder

USA

Boulder
B-cycle

n/a

$65

n/a

$24

$7

60

60

Boston

USA

Hubway

$101

$85

$20

n/a

$6

30.

30

n/a

$60

n/a

$24

$10

30

30

$250

$94

$40

n/a

$5

30

30

(Casual
members
only)

San Antonio

USA

San Antonio
B-cycle

Toronto

Canada

Bixi Toronto

(Casual
members
only)

Financial Model

131

After over a year of delay,

New York City installed
stations like this over the
course of one month.
AIMEE GAUTHIER

section six

IMPLEMENTATION

Once the contracts are signed, the

timeline for implementation will
be contingent on procurement and
installation of the hardware and the
procurement or development of the
software. Vlib and Ecobici took six
months to implement. New York Citys
bike-share took two years, in part due
to a contractual problem between the
systems operator and the subcontractor
developing the software.
Two months prior to the official launch,
the city should conduct community
outreach and membership drives to
help educate customers on how to use
the system and to prepare drivers to
be aware of these new users. A good
communications strategy that builds
excitement and support prior to the
systems opening will help mitigate any
problems during the launch.

Implementation

134

A soft launch or demonstration of the

actual bike-share system in the city can
provide three benefits:
It allows users to see how the system will work, ask

questions, and get a feel for the process of checking a

bicycle in and out.
It lets the operator try out the hardware and software,

with informed personnel on hand to answer questions

and work out any potential system bugs.
It provides a positive media event to lead up to the

actual launch.
The actual launch should be a high-profile event with

local celebrities and important city officials that is

promoted to the press as a victory for the city. This
will make potential new customers aware of the
program.

Customer service, before and after

opening, will be critical to the success
of the system. The system will need to
have ways for users to register, make
payments, and issue complaints or
notices of defective equipment, and it
must have a point of sales for buying
subscriptions and a hotline for user
inquiries (Obis 2011).
Implementation

135

From the day the bike-share system is

launched, it will be evaluated on whether
it is meeting, exceeding, or falling below
the goals it promised to achieve. Those
goals should have been articulated in
service-levels agreements between the
implementing agency and the operator.
The service levels need to be realistic
at the outset, and if the operator is not
achieving them, it must be determined
whether the operator is failing to meet
the service levels due to negligence.
Flexibility and communication between
the operator and the administrator are
essential. While the main operational
measures will be established in the
tender and contract, service levels may
need to be readjusted or refined so the
operator has an incentive to innovate
and excel in areas where resources can
create the greatest change or benefit to
the user and the system as a whole. If this
doesnt happen, the operator will focus
limited resources on service levels that
are impossible to achieve, minimizing
loss instead of creating potential growth.
Implementation

136

This requires give and take, and open

communication.
This is a complicated matter to handle
contractually, as any leeway in the written
agreement could be exploited by either
party. One recommendation is to agree to
a mediated review of the service levels six
months into the operators contract. This
mandates that the two parties sit down
and discuss the service levels, while a
third party makes sure the outcome is fair.

Implementation

137

section seven

CONCLUSION

Kids in Zhuzhou, China

use the local bike-share.
LI SHANSHAN

The enormous growth in bike-share

systems all over the world in the past ten
years has done a great deal to legitimize
the bicycle as the mode of choice for
urban commuting. The transformation of
bike-share from the informal, free bikes
for the community system to its official
integration into the citys public transport
systems is an important step in creating
more equitable and sustainable cities.
While the benefits of introducing bikeshare in cities is enormous, adaptations
in behavior and enforcement are also
necessary to make bike-share work for
everyone. Cycling lanes, when protected
from cars, encourage riders who may be
intimidated by traffic, and the inclusion
of signage giving bikes right-of-way helps
remind drivers to share the road. In order
for this integration to be successful, these
spaces and rules should be enforced
for drivers and for cyclists. In addition,
more cyclists on the road increases the
safety of cyclingmany cities see a
decrease in accidents even though there
are more cyclists.
Conclusion

140

Bike-share, more than any other form

of urban transport, has the ability to
improve and transform our cities. Bikes
allow individual freedom of movement,
but without the CO2 emssions,
congestion, and overuse of scarce street
space that cars demand. In the more
than 400 cities that have implemented
bike-share, more people are now
experiencing the health benefits, cost
savings, flexibility, and enjoyment of the
city that comes with cycling. As more
cities consider bike-share, cities and
streets are once again becoming dynamic
places for people and not just cars. We
look forward to seeing how bike-share
continues to innovate and cities evolve
with more and better practices in
bike-share.

Conclusion

141

APPENDIX

Biking along the beach

in Rio de Janeiro.
AIMEE GAUTHIER

Appendix A:
Key Resources and Publications
Alonso, Miguel Bea. Los Sistemas de Bicicletas Pblicas Urbanas. Universidad Autnoma de
Barcelona, 2009.
Alta Planning and Design. Bike Sharing/Public Bikes: An Overview of Programs, Vendors and
Technologies. 2009.
Alta Planning. Presentation on Operations, Business Planning, and Contracts for Bike-share Panel
at ADB Transport Forum, Manila, Phillipines. November 9, 2012.
Cohen, Alison. The Future Viability and Pricing Structures of Bike Share in North America. Toole
Design Group, White Paper, July 2013.
Baquero, Camilo. El Ayuntamiento insta a comprar bici en lugar de usar el Bicing. El Pais, October
19, 2012. http://ccaa.elpais.com/ccaa/2012/10/18/catalunya/1350587436_402030.html
Britton, E. The Greening of Paris: Vlib: A Short Report on the Paris City Bike Project. Paris, 2007.
C40 Cities. Velib A New Paris Love Affair, http://www.c40cities.org/c40cities/paris/city_case_
studies/velib-%E2%80%93-a-new-paris-love-affair
City of Buenos Aires. Sistema de Transporte Publico en Bicicletas de Buenos Aires: Analisis
estadistico de demanda y operaciones. June 2013
DePillis, Lydia, R.I.P. SmartBike, Good Riddance, Washington City Paper, September 16, 2010.
ECOMM London. Session 12: Implementing Sustainable Transport: Public Bike Services. London,
2008.
Godoy, Emilio. Sustainable Transport Gets a Boost in Latin America. Inter Press Service, January 17,
2013, http://www.ipsnews.net/2013/01/sustainable-transport-gets-a-boost-in-latin-america/
JCDecaux. Cyclocity a Revolutionary Public Transport System Accessible to All, 2008.
ITDP China, Public Bike Feasibility Study, Vancouver.
LDA Consulting. Capital Bikeshare 2011 Member Survey: Executive Summary. June 2012. http://
capitalbikeshare.com/assets/pdf/Capital_Bikeshare_2011_Survey_Executive_Summary.pdf
MacDonald, Christine. The Bike Share Station Sponsorship Dance. Atlantic Cities, November
29, 2011. http://www.theatlanticcities.com/commute/2011/11/bike-share-station-sponsorshipdance/595/
Mairie de Paris. Direction Gnrale de LInformation et de la Communication. Paris: Vlib: Dossier
de Presse, Anglais, 2008.
Midgley, Peter. Bicycle-Sharing Schemes: Enhancing Sustainable Mobility In Urban Areas. UNDESA
Background Paper No. 8, May 2011, http://www.un.org/esa/dsd/resources/res_pdfs/csd-19/
Background-Paper8-P.Midgley-Bicycle.pdf
Kodranksy, Michael. Europes Parking U-Turn: From Accommodation to Regulation. New York: ITDP,
Spring 2011.
Miller, Stephen. As Citi Bike Stations Appear, DOT Recaps How People Helped Picked Sites.
Streetsblog New York, April 8, 2013. http://www.streetsblog.org/2013/04/08/with-citi-bikerollout-dot-report-reviews-station-planning-history/
Ministerio de Industria. Turismo y Comercio. Gua Metodolgica Para la Implantacin de Sistemas
de Bicicletas Pblicas en Espaa. Madrid, 2007.
Mulholland, Helene. 6,000 bikes in 400 locations: Boris Johnson's bike-hire scheme. The Guardian,
November 18, 2008, http://www.theguardian.com/politics/2008/nov/18/boris-cycling

Appendix

144

Nadal, L. Bike Sharing Sweeps Paris Off Its Feet. Sustainable Transport Magazine (pp. 812).
New York: ITDP, Fall 2007.
New York City Department of City Planning. Bike-share: Opportunities in New York City. New York,
2009. http://www.nyc.gov/html/dcp/pdf/transportation/bike_share_complete.pdf
Niches project. New Seamless Mobility Services: Public Bicycles. 2008.
Obis. Optimising Bike Sharing in European Cities: A Handbook. June 2011.
http://www.obisproject.com/palio/html.wmedia?_Instance=obis&_Connector=data&_
ID=970&_CheckSum=-1311332712
Pealosa, Ana. Bike Share Goes Viral. Sustainable Transport Mgazine (p. 29). New York: ITDP,
Winter 2009.
Preiss, Benjamin. Bike share scheme disappointing. The Age: Victoria, May 2011.
Quay Communications, Inc. TransLink Public Bike System Feasibility Study. Vancouver, 2008.
Schimmelpennink, Luud. The Birth of Bike Share. October 1, 2012,
http://bikeshare.com/2012/10/the-birth-of-bike-share-by-luud-schimmelpennink/
Secretara Distrital de Movilidad. Documento de Anlisis Para la Implementacin de un Sistema de
Bicicletas Pblicas en Bogot D.C. (Borrador). 2009.
Silverman, Elissa. "Bicycle-Sharing Program to Debut." The Washington Post. April 18, 2008.
Spicycles. Cycling on the Rise: Public Bicycles and Other European Experiences. 2009.
Spitz, Eric. Discussion with Eric Spitz, Director of Legal Affairs, City of Paris. (Personal
communications with ITDP at the Sustainable Transport Award, January 2008).
Transport for London. London Cycle Hire Service Agreement: Schedule 5 Service Level
Agreement,.August 2009. http://www.tfl.gov.uk/assets/downloads/lchs-schedule05-servicelevel-agreement-redacted.pdf
Wanted in Europe. New Prices for Bicing in Barcelona. October 24, 2012.
Wright, Lloyd. GTZ Bicycle Sharing Training in Delhi. 2011.
Maps
Public Bike Website: photos and data of the main systems in the world, with a special focus on
Chinese systems
publicbike.net
Oliver OBriens Bike Share Map: http://bikes.oobrien.com/global.php
Global Bike-sharing World Map on Google Maps: https://maps.google.com/maps/ms?ie=UTF8&hl
=en&om=1&msa=0&msid=104227318304000014160.00043d80f9456b3416ced&ll=43.580391,42.890625&spn=143.80149,154.6875&z=1&source=embed&dg=feature
DeMaio, Paul, and Russell Meddin. The bike-sharing world map. 2007.
http://maps.google.com/mapsms?ie=UTF8&hl=en&om=1&msa=0&msid=1042273183040000
14160.00043d80f9456b3416ced&ll=43.580391,Institute for Transportation and Development Policy (ITDP). Publicbike, 2010.
http://www.publicbike.net/defaulten.aspx
MetroBike LLC. The bike-sharing blog. http://bike-sharing.blogspot.com/

Appendix

145

Key Resources
Some Bike-share System Web Pages
Bici in Citt (Chivasso, Italy): www.bicincitta.com
BiciBur (Burgos, Spain): www.bicibur.es
Bicing (Barcelona, Spain): http://www.bicing.com
Bixi (Montreal, Canada): http://www.bixi.com/home
Bycyklen (Copenhagen, Denmark): www.bycyklen.dk
Call-a-Bike (Germany): www.callabike.de
Citybike Wien (Vienna, Austria): www.citybikewien.at
Cycle Hire (London, United Kingdom): http://www.tfl.gov.uk/roadusers/cycling/12444.aspx
Cyclocity (Brussels, Belgium): www.cyclocity.be
Ecobici (Mexico City, Mexico): https://www.ecobici.df.gob.mx/
Fremo (Mumbai, India): http://www.fremo.in/
Oslo Bysykkel (Oslo, Norway): www.oslobysykkel.no
OYBike (London, United Kingdon): www.oybike.com
Vlib (Paris, France): www.velib.paris.fr
Vlo la Carte (Rennes, France): http://veloalacarte.free.fr/rennes.html
Vlov (Lyon, France): www.velov.grandlyon.com

Appendix

146

Appendix

147

Appendix B: Bike-share System General Information

City

Country

System Name

Launch Date
(Month/Year)

# of Stations

# of Bikes
in Service

# of Docks

London

U.K.

Barclays Cycle Hire

July, 2010

554

7,000

14,000

Paris

France

Vlib'

July, 2007

1,751

16,500

40,421

Barcelona

Spain

Bicing

March, 2007

420

4,100

10,580

Lyon

France

Vlo'v

May, 2005

347

3,000

6,400

Montreal

Canada

Bixi

May, 2009

411

3,800

7,760

Washington,
D.C.

USA

Capital Bikeshare

September, 2010

238

1,800

3,750

Guangzhou

China

Guangzhou Public
Bicycle

June, 2010

109

5,000

2,298

Hangzhou

China

Hangzhou Public
Bicycle

May, 2008

2,700

66,500

n/a

Shanghai

China

Not Available

March, 2009

330

28,000

n/a

Zhuzhou

China

Not Available

May, 2011

502

10,000

n/a

Shenzhen

China

Not Available

December, 2011

1,118

9,500

n/a

Mexico City

Mexico

EcoBici

February, 2010

279

3,200

7,134

Rio de Janeiro

Brazil

Bike Rio

October, 2011

56

600

723

Buenos Aires

Argentina

Mejor en Bici

December, 2010

28

1,122

n/a

Dublin

Ireland

Dublinbikes

March, 2009

44

450

1,105

New York City

USA

Citi Bike

May, 2013

323

4,200

9,980

Denver

USA

Denver B-Cycle

April, 2010

82

450

1,248

Minneapolis

USA

Nice Ride

June, 2010

146

1,380

2,554

Chattanooga

USA

Bike Chattanooga

July, 2012

31

235

517

Madison

USA

Madison B-Cycle

May, 2011

32

230

490

Taipei

Taiwan

YouBike

March, 2009

74

1,000

2,980

Brussels

Belgium

Villo!

May, 2009

180

3,500

7,371

Tel Aviv

Israel

Tel-o-Fun

April, 2011

125

1,100

3,523

Boulder

USA

Boulder B-cycle

May, 2011

22

110

276

Boston

USA

Hubway

July, 2011

113

950

1,931

San Antonio

USA

San Antonio B-cycle

March, 2011

42

330

637

Toronto

Canada

Bixi Toronto

May, 2011

80

660

1,500

Appendix

148

Coverage Area
(km2) [May 2013]

Overall City
Population Density
(People/km2)

Population in
Coverage Area

Who is operator?

Operator, private,
public, non-profit?

66

5,206

343,596

Serco Group

Private

135

21,196

2,861,460

SOMUPI (subsidiary of JC Decaux)

Private

41

15,991

652,433

Clear Channel (sub-contracted to Delfin

Group) & City of Barcelona

Private

45

10,101

453,535

JCDecaux

Private

50

4,518

225,448

Public Bike System Company (Bixi)

Public

57

3,977

225,894

Alta Bicycle Share

Private

263

1,708

449,204

Guangzhou Public Bicycle Operation

Management Co.

Public

125

4,889

611,125

Hangzhou Public Transport Bicycle

Service Development Co.

Public

256

3,600

921,600

Shanghai Forever Bicycle Co.

Public

n/a

n/a

n/a

Zhuzhou Jianning Public Bicycle

Development Co.

Public

n/a

n/a

n/a

n/a

n/a

19

6,000

112,200

Clear Channel

Private

20

4,781

94,186

Sertell

Private

28

14,000

385,000

City Government of Buenos Aires

Public

4,588

22,940

JCDecaux

Private

30

26,939

813,558

Alta Bicycle Share

Private

21

1,561

32,157

Denver Bike Sharing

Non-profit

70

2,710

190,242

City of Minneapolis

Non-profit

473

945

Alta Bicycle Share

Private

1,173

10,553

Trek Bicycle Corporation

Private

24

9,600

226,560

Giant Bicycles

Public

73

7,025

509,313

JCDecaux

Private

36

7,956

289,580

FSM Ground Services

Private

3,006

7,215

Boulder Bike Share dba Boulder

B-cycle

Non-profit

36

4,984

179,904

Alta Bicycle Share

Private

11

2,972

33,281

San Antonio Bike Share

Non-profit

11

4,149

46,054

Public Bike System Company (Bixi)

Public

Appendix

149

Appendix C: Bike-share System Performance Metrics

City

Trips per Bike

Trips per 1,000

Residents

Station Density

Bikes per 1,000

Residents

Operating Cost
per Trip

London

3.1

63.9

8.4

23.3

$4.80

Paris

6.7

38.4

13.0

8.4

n/a

Barcelona

10.8

67.9

10.3

9.2

$0.86

Lyon

8.3

55.1

7.7

6.6

$0.86

Montreal

6.8

113.8

8.2

22.7

$1.27

Washington, D.C.

2.4

18.9

4.2

8.4

$1.52

Mexico City

5.5

158.2

14.9

35.7

$1.28

Rio de Janeiro

6.9

44.2

2.8

6.4

n/a

Buenos Aires

3.8

11.2

1.0

2.9

n/a

New York City

8.3

42.7

10.7

6.8

n/a

Denver

2.8

39.1

4.0

22.0

$3.22

Minneapolis

1.4

10.5

2.1

8.1

$1.52

Madison

2.2

48.3

3.6

25.6

n/a

Boulder

1.0

15.9

9.2

20.8

n/a

Boston

4.0

20.9

3.1

6.1

$3.09

San Antonio

0.4

4.0

3.8

10.6

n/a

Appendix

150