Apparently, Chicago's Divvy is really popular with tourists—and tourists have trouble returning the bikes on time:
Chicago's Divvy bicycle-sharing program took in up to $2.5 million during its first five months, a figure driven by tourists and others who bought daily passes and racked up the majority of overtime fees, according to a trove of preliminary customer data provided by city transportation officials.
As much as $703,500 came from late charges, which kick in when bicycles aren't returned within 30 minutes. Just a sliver of that money was generated from Divvy's clock-conscious annual members, who checked out bikes for short trips instead of hopping into taxis or riding public transit, city officials concluded.
It's not clear whether the Divvy public-private partnership, supported by $25 million in federal funding and $6.25 million in local matches, is turning a profit.
The article goes on to suggest that tourists have trouble understanding the point of the 30-minute time limit. It's not to prevent you from riding Divvy bikes; it's to keep Divvy bikes moving. If the program didn't have a 30-minute window, people would ride to their destinations, park the bikes, and ride back, possibly tying up a bike all day.
So the problem seems to be user education.
Still, I'm glad the program is making revenue. I really hope it's profitable.
While London's bike-share program seems to have some problems, Chicago is expanding its Divvy program, and asking for user input:
To cap off the Year of the Divvy, the city is crowdsourcing all you urban dwellers for suggestions on where to install 175 more stations across Chicago next year. Still no word on if they will make sure Divvy riders know not to ride the bikes on crowded Michigan Avenue sidewalks.
They bred like rabbits this summer, popping up in succession so close to each other. I could literally crawl from Divvy station to Divvy station if I had to. Doesn’t seem like the best use of multiple resources, especially in an area so accessible by transit. Sure, a Divvy station next to a major road or train stop makes sense, but four of them seems excessive.
The suggestion map shows interest in Divvy bikes clear up into the northern suburbs, but not so much on the south and west sides. Some wag even suggested a station at O'Hare.
The Atlantic Cities blog sounds the alarm about London's bike share program:
While the system recorded 726,893 journeys in November 2012, last month there were only 514,146. To cap these poor user figures, today Transport for London announced that the scheme's major sponsor, Barclays Bank, will pull out of its sponsorship deal in 2015. Given the bad publicity the system has received recently, it may be hard to find a replacement sponsor without some major changes.
None of this would matter much if London’s scheme was entirely self-sustaining. But while Paris's bike-share scheme actually makes money for the city, London's 4,000 bikes cost local taxpayers an average of £1,400 per bike per year. As the Daily Mail points out, this would be enough to buy each of the scheme's 38,000 registered users a £290 bike. Barclays has thus found its sponsorship deal a mixed publicity blessing – though the bank itself may be part of the problem. The £50 million it promised was never going to be enough, and the amount it has actually handed over so far suggests their ultimate contribution could be at little as half that.
So, Toronto and London are having problems; Chicago and Paris are booming. This is turning into a fascinating natural experiment.
First, housekeeping. After my last entry I managed to stay up for about 30 minutes, then slept for almost 7 hours. If you do the math you see that means I was up before 3am. So, even thought it's 1pm on Thanksgiving back home, I did some client work to clear it off my agenda for the rest of the week.
Now the point of this post:
Toronto’s plan to save Bixi transfers the bike-sharing program to the Toronto Parking Authority, turns over management to a Portland-based firm and uses money from Astral Media that was going to be spent on public toilets, the National Post has learned.
The deal, approved at a closed-door meeting of city council 10 days ago, will also see Toronto “eat” the $3.9-million in loan guarantees that the city gave to Bixi, owned by the City of Montreal, according to a source.
The city is negotiating with Portland-based Alta Bike Share, which manages Chicago's Divvy program, among others.
At least, by number of stations:
There’s more good news on the Divvy bike-share front. The Chicago Department of Transportation announced this morning that they scored a $3 million federal Congestion Mitigation and Air Quality Improvement grant to add 75 more docking stations to the 400 already planned. The system recently reached 300 stations and 3,000 bikes.
While the expansion of Divvy is an exciting development, CDOT’s press release exhibits a bit of Second City syndrome, boasting that with 475 stations Chicago will have the largest bike-sharing system in North America and the fifth largest in the world. While it’s true New York City currently has only 331 stations, and Montreal has 434, NYC has about 6,000 bikes and Montreal has about 5,000. Even if the ITEP funding comes through, we’d only have about 5,500 bikes, so it’s wishful thinking to claim Divvy will be larger in the future than the Citi Bike program is now.
On the other hand, as a Streetsblog reader Dennis Hindman pointed out, New York is about 3.07 times the population of Chicago. We currently have roughly one Divvy bike for every 725 residents, almost twice the service level compared to their ratio of one Citi Bike for every 1390 people. Once we expand to about 4,750 bikes, we’ll have one for every 571 Chicagoans, and with 5,500 bikes there will be one for every 497 citizens, almost three times the bike-share density of NYC. That will be something to brag about.
Also, they've got a deal with Chipotle to give away burritos to members next Tuesday. Cool.
Another packed day, another link roundup:
All for now.
Chicago's bike share program could become the nation's largest, thanks to Federal subsidies:
There are currently 300 Divvy stations up and running around Chicago, with 100 more stations in the works to be installed by next spring. Officials from the Chicago Department of Transportation said Wednesday they’ve secured a $3 million federal grant to build 75 additional stations next year, bringing the total to 475 by next year. The grant comes from the US Department of Transportation’s Congestion Mitigation and Air Quality Improvement Program.
So far, the U.S. DOT has provided $25 million dollars in federal grant funding toward the Divvy bike share program.
There’s been some criticism that Divvy stations are concentrated downtown, and don’t serve the south or west sides of the city. CDOT Commissioner Gabe Klein, speaking to alderman at his department’s city budget hearing Wednesday, said they’ll bring Divvy to Englewood by spring, and with this grant, they’ll be able to expand the program farther in all directions.
Klein also mentioned that Oak Park and Evanston could be joining the system next year.
The so-called "Starpath" is a type of solar-enhanced liquid and aggregate made by Pro-Teq Surfacing, a company headquartered southwest of London near the awesomely titled town of Staines-upon-Thames. It's in the prototype phase, with a test path running 460 feet in a Cambridge park called Christ's Pieces. (The British and their delightful names!) The material works by absorbing UV rays during the day and later releasing them as topaz light. In a weird feature, it can somehow adjust its brightness levels similar to the screen of an iPhone; the path gets dimmer on pitch-black nights "almost like it has a mind of its own," says Pro-Teq's owner, Hamish Scott.
Pro-Teq is hoping that governments will embrace its self-aware, supernatural-looking pathway for its energy-saving elements and the ease in which it goes down. The installation is fairly quick (the Cambridge job took about 4 hours), and because it's a resurfacing technique doesn't involve the burdensome disassembly and disposal of existing pathways. "The main bulk of the U.K. path network is tarmac, where perhaps it's coming toward the end of its useful life," says Pro-Teq pitchman Neil Blackmore in the below video. "We can rejuvenate it with our system, creating not only a practical but a decorative finish that's certainly with the Starpath also very, very unique."
From the company's press release:
This product has recently been sprayed onto the existing pathway that runs through Christ’s Pieces open space, Cambridge between the city centre and the Grafton Centre, and is used by pedestrians and cyclists during the day and night.
The Cambridge pathway measures 150 square metres, took only 30 minutes to spray the material on, and the surface was ready for use less than four hours after the job commenced. This short installation time allowed minimal disruption to the public.
Bike hike to Cambridge, anyone?
If you wondered how often people actually ride Divvy bikes, everyone's Divvy online trip summary page has the answer. They put the trip ID right on the page. My first Divvy trip, on September 18th, was #522105; this morning's was #732089. Assuming they use an ID field that auto-increments by 1 for each ride, that means Divvy users rode about 210,000 times in the past 22 days, or about 9,500 times a day (on average). That rate gives them nearly 3.5 million rides over the next 12 months.
Compare that with the CTA's 314 million bus rides and 231 million train rides, though. The 79th Street bus had 10 million rides last year; the #36 bus (one of five that stop near my house) had 5.8 million; most of the 150-odd routes had over a million. So will Divvy actually eat into CTA ridership? Not for a while.
I'll look for more official sources of Divvy participation, especially on revenue.
Probably not. But Bixi, who manufacture the bikes and stations used here in Chicago, has cash-flow problems:
Montréal’s own Bixi bike-share, the inaugural PBSC venture launched in 2009, was the largest system in North America until Citi Bike launched in New York this summer. (Technically, PBSC is the parent entity and Bixi refers to the bike-systems in Montréal and other cities where PBSC runs operations, although in practice the two names are often used interchangeably.) But according to a letter filed last month by Montréal’s auditor general, the company’s finances are in disarray – the latest chapter in a series of money woes that have plagued PBSC and Bixi, which was founded in 2007 by the City of Montréal's parking authority for the purpose of creating a bike-share system for Montréal and is still under the city's administration.
According to numbers released late last month by the City of Montréal, the company is $42 million in debt, with a $6.5 million deficit and $5 million in outstanding payments.
Will PBSC’s ongoing cash-flow problems affect system users in the multiple U.S. cities that use its bikes and docking stations? Mia Birk, vice president of Alta Bicycle Share, insists that the answer is no. Alta is the exclusive operator of Bixi systems in the United States, managing in a total of eight U.S. programs as well as the one in Melbourne, Australia, and acting as the contractor between municipal departments of transportation and PBSC.
Divvy is getting a huge amount of use. I'm interested what will happen in the winter, but regardless, I think the bike-sharing service is popular enough that the Chicago Transportation Dept. would step in if something happened to Bixi.
I hope so, anyway.