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Posts from the "Bike Sharing" Category

Streetsblog NYC 44 Comments

Alta Bicycle Share Has New Owners, New CEO, New Expansion Plans

With new ownership and a new CEO, Citi Bike expansion is back on track. DOT has even started taking suggestions for bike-share expansion again. Image: DOT

With new ownership from executives at real estate giant Related and a new CEO in former MTA head Jay Walder, Citi Bike expansion is back on track. DOT has already started taking suggestions for new bike-share stations. Image: DOT

It’s official: Alta Bicycle Share, the company that runs Citi Bike, has a new owner, an infusion of cash, and a fresh face at the top — longtime transit executive Jay Walder. At a press conference this afternoon, the new team promised to correct Citi Bike’s blunders and double the system’s size by the end of 2017.

The same ownership group will also be running Alta bike-share systems in Chicago, San Francisco, Washington, and Boston, among other cities. While today’s news signals potential changes in those cities as well, the most immediate changes — along with Alta Bicycle Share’s headquarters — are coming to New York.

Citi Bike’s reboot has been months in the making. Top executives from Equinox Fitness, itself a division of real estate giant The Related Companies, burst onto the bike-share scene in April with an unsuccessful last-minute bid for Bixi, the bankrupt Canadian supplier of Alta’s bike-share components. Related execs resurfaced in July, when word came that they were on the verge of buying out Alta. After months of negotiations, the deal is now official, with a company backed by Related executives and other investors, called Bikeshare Holdings LLC, acquiring all of Alta Bicycle Share.

Alta is getting a major cash infusion — $30 million from Bikeshare Holdings LLC, which is led by Equinox CEO Harvey Spevak, Related CEO Jeff Blau, and investor Jonathan Schulhof. Citi has extended its initial $41 million, five-year sponsorship of NYC bike-share by promising an additional $70.5 million through 2024, contingent on system expansion. Goldman Sachs Urban Investment Group, which has already helped finance Citi Bike, is increasing its credit line to Alta by $15 million. The deal includes $5 million from the Partnership Fund for New York City, an investment fund backed by the city’s big business coalition, to expand Citi Bike to more neighborhoods.
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Streetsblog NYC 39 Comments

Sources: Alta Bike-Share Buyout a Done Deal; NYC Citi Bike Fleet to Double

The REQX purchase of Alta bodes well for bike-share in NYC and beyond. Photo: Brad Aaron

The buyout of Alta Bicycle Share rumored since July is finally a done deal. Alta — which operates New York’s Citi Bike, Washington, DC’s Capital Bikeshare, Chicago’s Divvy, San Francisco’s Bay Area Bike Share, and several other cities’ systems — will be purchased by REQX Ventures, an affiliate of the Related Companies and its Equinox unit.

The injection of capital from REQX is expected to help resolve lingering problems with Citi Bike’s supply chain, software system, and operations, which until now have prevented any expansion of the bike-share network.

The sale was reported Friday by Capital New York’s Dana Rubinstein, and Streetsblog has confirmation from two people with knowledge of the deal.

Rubinstein reported that REQX plans to double the size of the Citi Bike fleet to 12,000 bikes. Annual membership prices are expected to increase about 50 percent.

New management and an infusion of funds from REQX bodes well for all Alta bike-share programs over the next year after a stagnant 2014. Alta’s supply chain troubles have hampered system expansions in Chicago, DC, Boston, and San Francisco, among other cities.

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Alta Chief: Bike-Share Expansions Unlikely in 2014

There was no shortage of Bixi bikes at this 2012 conference, but there is now. Photo: Dylan Passmore/Flickr

Despite continually growing ridership, Alta Bicycle Share-operated bike-share systems across America will probably not be adding bikes or docks this year. The bankruptcy of Montreal-based Public Bike Share Company, known as Bixi, which developed and manufactured the equipment that Alta’s systems use, has disrupted the supply chain that numerous cities were pinning their expansion plans on.

“New bikes probably won’t arrive until 2015,” reports Dan Weissmann at American Public Media’s Marketplace. Alta Bicycle Share’s founder and vice president Mia Birk told Weissman that the last time Alta received new bikes from Bixi “must have been pre-bankruptcy.”

That puts expansion plans for cities including Chicago, San Francisco, and Washington, DC on hold. Just those three cities had previously announced fully-funded plans to add 264 bike-share stations in 2014. New York and Boston are also looking to expand their Alta-run systems. Other bike-share systems that purchase equipment from Bixi, like Nice Ride Minnesota, have had no luck buying new kit this year.

The shortage of equipment also means that cities that had signed up with Alta to launch new bike-share systems — notably Baltimore, Portland, and Vancouver – won’t launch until 2015 at the earliest. Ironically, new launches that were planned later, like Seattle’s Pronto system, will proceed sooner, as they were designed with equipment not sourced through Bixi.

The good news is that the troubled supply chain for Alta’s bike-share systems looks like it will be rebooted thanks to an infusion of capital. REQX Ventures, a company from New York City that had bid on Bixi, has been in talks to purchase a majority stake in Alta Bicycle Share, according to a report in Capital New York. This should inject new resources, allowing the bike-share operator to upgrade buggy software and overcome the hurdles imposed by Bixi’s bankruptcy in time for 2015′s equipment orders.

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Safety in Bike-Share: Why Do Public Bikes Reduce Risk for All Cyclists?

Injuries to all cyclists declined after the launch of bike-share systems in Boston and other cities. Photo: Kelly Kline/Flickr

What if Yankees legend Yogi Berra had followed a season with 24 homers and 144 hits with one featuring 27 homers and 189 hits? Would the baseball scribes have declared “Yogi Power Shortage” because only one in seven hits was a homer instead of one in six? Duh, no. The headlines would have read, “Yogi Boosts Production Across the Board.” The fact that a greater share of base hits was singles and doubles would have been incidental to the fact that Yogi’s base hits and homers were both up.

So how is it that a study that documented drops of 14 percent in the number of cyclist head injuries and 28 percent in total cyclist injuries in U.S. cities with bike-share programs got this headline in the Washington Post last month?

wapo_hed

To be sure, those figures were buried in the study. They saw the light of day, thanks to two posts last month by Streetsblog’s Angie Schmitt. So readers know that the Post’s headline should have been: “Cities with bike-share programs see marked decrease in cyclist injuries.”

Simple enough, right? Except that to run the story straight up like that would have required the Post to set aside the unholy trinity atop Americans’ ingrained misperception of cycling safety: the beliefs that helmetless cycling is criminally dangerous; that cycling is inherently risky; and that cyclists, far more than drivers, make it so.

To see why, let’s look further into the research data that made its way into the Post story. The team of researchers, two of whom work at the Harborview Injury and Research Center in Seattle, compared five bike-share cities with five cities that did not implement bike-share programs. The bike-share cities had a total drop in reported cyclist injuries of 28 percent, versus a 2 percent increase in the control cities. The effective difference of 30 percentage points is huge.

The safety improvement in bike-share cities is all the more impressive, since those places likely saw a rise in overall cycling activity that one would expect to lead to an increase in cyclist injuries. But the expected increase in injuries is small when you take into account the safety-in-numbers phenomenon that one of us (Jacobsen) has documented for a decade and counting: You’re safer riding a bike in a community where more people ride bicycles.

Let’s train the safety-in-numbers lens on that 28 percent drop in cyclist injuries in bike-share cities and consider why the injury risk fell instead of increasing:

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SFCTA Report: Expand Bike-Share in San Francisco ASAP

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The SF County Transportation Authority issued a new report Monday to guide the expansion of Bay Area Bike Share, which sees 90 percent of its rides in San Francisco, despite the city encompassing half of the system’s bikes and stations.

Among the recommendations in the “Strategic Analysis Report” [PDF] is giving the SFMTA greater independence to plan and manage bike-share in San Francisco while other Bay Area cities work on their own expansions of the system.

“This SAR makes smart recommendations: embracing a regional system while not waiting to expand in San Francisco,” said Kit Hodge, deputy director of the SF Bicycle Coalition. “Now it’s up to the city to really move forward. San Francisco residents and businesses have been very clear in their call from every corner of the city for more bike-share.”

The report notes that SF’s bike-share expansion is crucial to the system as a whole, given the high usage in SF by commuters who live in other areas: “As an indication of the regional demand for bike sharing in San Francisco, Alameda County has the second highest number of memberships in Bay Area Bike Share, even though there are currently no bike sharing stations or bicycles in the East Bay.”

The SFCTA also recommends that Bay Area Bike Share operations, currently overseen by the Bay Area Quality Management Distict, should be re-organized using “a hybrid model where a non-profit associated with or managed by a public agency administers the program and contracts with a private-sector operator.”

Here are the report’s full recommendations on bike-share expansion in San Francisco:

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Why TIME Magazine Got the Bixi Story Wrong

Major media have a habit of blowing bike-share problems out of proportion. Witness the 2009 BBC story that cast theft and vandalism as an existential threat to Velib in Paris. Five years later, Velib is still going strong. The most recent entry in the genre is Christopher Matthews’ misguided story on the Bixi bankruptcy in TIME. Headline: “Why America’s Grand Bike-Sharing Experiment Is Failing.”

There’s a reason that Divvy was fed up with Bixi’s software, but TIME didn’t explain why. Photo: John Greenfield

The main mistake Matthews makes is to conflate Bixi’s troubles with the fate of American bike-share overall:

The question now is whether this is the beginning of the end for the bike-sharing experiments that have spread quickly across the U.S. So far, officials from various bike-sharing programs are saying no.

This is a poor way to frame the issue, for a few reasons. While Bixi is the dominant supplier in the American bike-share market, it is far from the only one. Medium-sized systems in Denver, Miami Beach, and Austin use equipment from other companies, so the Bixi bankruptcy doesn’t affect all U.S. bike-share systems.

The American bike-share operators that do use Bixi equipment will probably have serious logistical challenges on their hands, but there are reasons Matthews couldn’t find a single source to back up his doomsday scenario. Bixi itself relies on subcontractors to make most of its equipment and software. In a worst-case scenario where Bixi is broken up, those firms could be tapped to supply bike-share systems with components that integrate with existing equipment.

Matthews doesn’t mention any of these contingencies. He just keeps making the same unsupported claim:

Bixi hasn’t been able to operate profitably and is now owned by the City of Montreal — which only two years ago approved a whopping $108-million bailout package to keep the company afloat. That may call into question the long-term viability of these programs.

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Streetsblog NYC 14 Comments

Bixi Bankruptcy: What Does It Mean for American Bike-Share?

The Montreal-based equipment supplier for several American bike-share systems, including New York’s Citi Bike and Chicago’s Divvy, filed for bankruptcy protection yesterday. It’s unclear exactly how the restructuring or sale of the company known as Bixi will play out, but the bankruptcy filing could accelerate the transition to more robust and reliable hardware and software. It also figures to be a messy process, though the company that operates Citi Bike expressed confidence today that it won’t impede their service.

Photo: Citi Bike

Bixi has always been a strange company. An offshoot of Montreal’s municipal parking contractor, it received significant financial backing from the city of Montreal. Bixi both operates bike-share systems in Canadian cities and runs a subsidiary that supplies bikes, stations, and other equipment to bike-share operators in New York, London, Chicago, San Francisco, Boston, DC, and other cities. The subsidiary was supposed to be sold off to disentangle Montreal from Bixi’s business ventures, but according to the Times, two deals fell apart and a sale never happened.

The bankruptcy news is not unexpected. It’s most troubling for Montreal, which is owed several million dollars by Bixi, and for the other Canadian cities where Bixi runs bike-share systems. In New York and the cities where Bixi is a subcontractor, the restructuring or break-up of Bixi could be a blessing in disguise, helping to resolve some longstanding problems with the company’s product.

Until 2012, Bixi’s bike-share equipment ran on a software platform developed by 8D Technologies. That’s what Bixi was using when it bid on and won the NYC bike-share contract with Alta Bike-Share. But after an intellectual property dispute with 8D, Bixi went to a different firm to develop replacement software, and the systems that have launched since the switch — including Citi Bike, Divvy, and Bay-Area Bike-Share — have been plagued by delays, glitches, and inefficiencies. While the software has been updated to some extent, in New York, especially, it’s been a drag on operations and an obstacle to system expansion. Both Citi Bike and Divvy, in Chicago, are withholding payments to Bixi because the software is not up to snuff.

It’s not clear yet whether Bixi’s international operation will be restructured as a financially viable entity, or if it will be broken up. Bixi itself contracted out much of its manufacturing — including the bikes — so in the event that the company gets dissolved, American bike-share operators should be able to find suitable replacement suppliers. One company that’s potentially waiting in the wings is 8D, which has developed equipment including kiosks, docking units, and locking mechanisms to go along with its software.

Shifting from Bixi to different suppliers would be a challenging transition for bike-share operators, but it could appear seamless from the bike-share subscriber’s perspective.

For now, operators supplied by Bixi do not expect the bankruptcy to detract from the customer experience. “We are committed to a thriving and expanded Citi Bike system,” said Dani Simons of NYC Bicycle-Share, the subsidiary of Alta Bike-Share that runs Citi Bike. “We’re still sorting out the details but we don’t expect the news from Montreal to affect our operations in 2014.”

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Riding the Bike Share Boom

Without a doubt, 2013 has been a banner year for bike-share in the United States. Major systems were implemented in New York City and Chicago, and many others debuted or expanded in other cities. In fact, Citi Bike users have biked over 10 million miles and the system is closing in on 100,000 annual members!

The Institute for Transportation & Development Policy (ITDP) has been studying 25 bike-share systems throughout the world, analyzing which ones perform the best and why. That informed ITDP’s Bike Share Planning Guide, which has copious data and fascinating charts to pore over, helping cities create bike-share systems that will thrive.

We were very happy to team up with ITDP to make this Streetfilm. It features a dozen bike-share systems and captures footage from an unprecedented number of bike-share cities in any one film. Enjoy and download the report!

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In SF, Bay Area Bike Share’s Bikes Get Almost Three Trips Per Day

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Image: SFMTA. Click to enlarge.

Following an underwhelming start, Bay Area Bike Share now sees an average of at least 2.5 trips per bike per day within San Francisco, according to the SFMTA. Since September 10, the average rate in SF has held mostly steady at about 2.7, and goes as high as 3.7.

For the entire five-city system, the average is about 1.9 trips per bike per day, up from the rate of 0.92 during the first 12 days after the August 29 launch. At two months in, Bay Area Bike Share’s usage exceeds that of DC’s Capital Bikeshare at the same point in time, according to SFMTA Bike-Share Program Manager Heath Maddox, who told supervisors Monday that the usage rate is “gratifying to see.”

Altogether, Bay Area Bike Share has about 2,000 members, and users have ridden 128,161 miles, or “almost five times around the Earth,” said Maddox. The 350 bikes within SF — half the system’s fleet — are used 900 to 1,000 times per day, he said.

The new numbers may not break any records, but Maddox said it’s “a healthy rate” and “a number we’re happy with.”

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Streetsblog NYC 18 Comments

Fox Business Tries and Fails to Capture the Dorothy Rabinowitz Magic

Might the talking heads at Fox Business turn their gaze to the Plaza Hotel’s lawsuit against a nearby Citi Bike station and sneer at the frivolous litigation tying up our courts? Of course not.

Watch Dorothy Rabinowitz wannabes Melissa Francis and Fred Tecce spend four and half minutes in faux-libertarian outrage over the installation of bike-share stations on public streets. The gall!

So, yes, Streetsblog is taking the bait and embedding their clip, but when it comes to pageviews, I don’t think this one will come close to matching Rabinowitz, creator of the original and best crazy Citi Bike screed. A few reasons:

  • The catchphrases stink. Dorothy Rabinowitz gave us “the bike-lobby is an all-powerful enterprise,” the alliterative “blazing blue Citi Bank bikes,” and “do not ask me to enter the mind of the totalitarians.” When she said the word “begrimed,” you were transfixed. After watching Francis and Tecce, I came away with some vague images of snails, frogs, and pigs, but nothing really stuck in my head.
  • It’s too canned. The Rabinowitz video was a genuine cri de coeur. She was saying all these insane things, and she really meant them. The Francis and Tecce bit is full of mugging and hamming it up for the camera. It’s got theatrical sighs and forced laughter, but no soul.
  • Reality intrudes. Rabinowitz maintained a consistent internal hallucination from start to finish. In her world, she just had to speak for the silent, bike-share-hating majority. In this Fox Business segment, when Francis acknowledges that she must be in the minority, reality manages to puncture the fantasy.