Crain's reported this morning that the Divvy bike-share program lost $150k on $2.2 million in revenue last year:
Though the operating loss is not unexpected, and the amount is relatively small, it comes at a time when Mr. Emanuel is under intense pressure to cut costs and avoid tax increases. The bicycle-sharing program has not yet reached many neighborhoods, reinforcing a view that Divvy is merely a toy for yuppies and tourists.
With the program expected to ramp up this year, achieving profitability is crucial to its long-term success. The administration expects Divvy to at least break even this year.
The program has proved popular with out-of-towners, but it must win over more price-sensitive customers, such as city residents.
So, the program seems on track, and the $12.5-million infusion from Blue Cross certainly hasn't hurt. I'm encouraged.