The Bikeshare Process

The Different Stages in Setting up aBikeshare System

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Stage 1: Why bikeshare?There needs to be a genuine interest in bikeshare to

complete the process.

Do the benefits outweigh the costs?

Why invest in bikeshare?

� Increased Transit Connectivity

� Individual Health Benefits

� Environmental Benefits

� Stimulated Local Commerce

Increased Transit Connectivity

Bikesharing is a great solution to the "last-mile" problemand enhances both public transit and short distance travel.

� Over 80% of respondents used bikesharebecause it was the easiest and fastest way toget to their destination.

� Over 70% of bikeshare participants agreed thatbikesharing increases transit connectivity.

� Over 95% stated that they perceivedbikesharing as a transportation enhancement.

1According to an aggregate of municipal bikeshare data:

Individual Health Benefits

Bikeshare offers a simple way to incorporate moderateexercise into a user�s daily routine, which makes

individuals healthier and reduces long-term health costs.

� Over 60% of people exercise moreonce they join a bikeshare program.

� Over 70% of people ride a bicyclemore often once they join bikesharing. 2

Communities that invest in bikeshare and bicycling infrastructureexperience significant long-term health cost savings.

According to a study on Portland, Oregon's investment in bicyclinginfrastructure, investments in the range of $138 to $605 million will resultin projected health care cost savings of $388 to $594 million by 2040.3

Environmental Benefits

Bikesharing offers people a better alternative to the carand bus for short distance rides, reducing congestion,

our dependency on fossil fuels, and saving on fuel costs.

� Bicycling is one of the most fuel-efficient forms of transit available.

Zero Carbon Emissions

Effective Replacement of theCar (for short distances)

� 40% of trips in urban areas are 2 miles orless, but 90% of those trips are taken by car.

� According to an aggregate of bikesharemunicipality data, about 40% of peoplereplace car rides with bike rides.

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Saved individual and community long-term costs

� On average, Capital Bikeshare members that own a carhave saved $800 per year on personal travel costs.

� According to the same study from the health benefits sectionon Portland, Oregon's investment in bicycling, there will be aprojected $143 to $218 million in fuel savings by 2040.

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Stimulated Local Commerce

Because bike riders create more foot traffic, bikesharingbrings vibrancy to downtown commercial districts.

According to an analysis of the Bloor-Danforthcorridor in Toronto, a commercial zone wherebike lanes were recently added, patrons who

arrived by bicycle spent the most money.8

Much more likely Somewhat more likely

No difference Somewhat less likely Much less likely

0

10

20

30

40

50

60

Likelihood of patronizing establishment

31%

52%

17%

83% of Capital Bikeshare users stated that theywere more likely to patronize a store that was

near or next to a bikeshare station.

0% 0%

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When New York City created protected bike lanes on 8thand 9th Avenue, there was a 49% increase in retail sales,compared to a 3% increase borough wide.

Bikesharing increases foot traffic, which will stimulatestorefront activity and local commerce in your community.

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Stage 2: ResearchUnderstanding third to fourth generation technological

developments changes the discussion on bikesharing.

Evolution of Bikesharing Technology

Third generation"smart-dock"

bikeshare system

Fourth generation"smart-bike"

bikeshare system

Developments in technology change discussions and research onfunding, implementation, and impact.

Funding:

High capital cost limits numberof bikes, operations run a deficit,

equipment needs to berepurchased through new funds.

Lower capital cost increasesnumber of bikes, operations run

a profit, equipment can berepurchased with profits.

Third generationfunding:

Fourth generationfunding:

Implementation:

Third generationimplementation:

Fourth generationimplementation:

Cumbersome kiosk installation,inflexible station sizes, fewer station

location options.

Simple rack installation, flexiblestation sizes, greater station

location options.

Impact:

Third generationimpact:

Fourth generationimpact:

Positive health, environmental,connectivity, and economic benefitsobserved. Impact largely limited to

dense urban spaces.

Increased bikeshare coverage andridership, further augmenting health,

environmental, connectivity, andeconomic benefits. Impact found in

municipalities of all size

For more information on bikeshare technology, funding,implementation and impact, please go to our website

www.a2bbikeshare.com and request our white papers.

A2B BikeshareWhite Papers

Request them froma2bbikeshare.com

New technology means new research!

Stage 3: Goals & ExpectationsA community needs to set forth specific goals and

expectations of how their system should look and who willbe in charge of what parts of the project.

Important steps that need to be followed beforeany serious project planning can take place.

Identify who's responsible for the project

Start on a macro level:

Who is going to own the system?

Who is going to operate the system?

Publicly Owned,Contractor Operated

Privately Owned andOperated

Non-Profit Owned andOperatedA business model needs to be

selected, which determines whoowns and operates the system.

Sources of funding heavily determinethe business model selected.

Select a Business Model

Simultaneously when deciding on who's responsible fordifferent tasks on a macro level (funding, marketing,

operations, etc.), it needs to be decided on a micro levelwho the person in charge will be.

The person responsible for kickstarting a bikesharingproject is often a bicycle activist, be it the city bicycling

coordinator or head of a bicycling non-profit.

Accessibility v. Profitability

Accessibility Profitability

A community needs to decide how much it wants its bikeshare system to beaccessible, and how much it wants it to be profitable.

Accessible = more expansive station coverage, lower riding/membership prices.Less expensive for the rider, more expensive for the owner/operator.

Profitable = selective station coverage, higher riding/membership prices. More expensive for the rider, more profitable for the owner/operator.

System Scale

Identify how large you want the system to be. Feasibility studies and communitycomparisons help answer the scale question.

Pilot programs are an option for communities to gain momentum for a larger scalebikeshare system or see if it works.

Stage 4: PreparationWhat needs to be prepared for the bikesharing project to

make progress.

Capital funds are necessary to start a bikeshare system. This can be done by applyingfor government grant funding, getting private money ready, and/or securing a majorsponsor. For more information, please refer to A2B Bikeshare's Funding White Paper.

Find Funding

Select a Vendor / Operator

Vendors determine system functionality. Factors to consider when selecting a vendorare system capabilities, ease of operations and maintenance, and price. Operatorsmaintain the system and make sure things run smoothly. Communities can select a

vendor / operator through an RFP process, or lease a pilot program. For moreinformation, please refer to A2B Bikeshare's Technology White Paper.

Station locations need to be planned and coordinated. Propose station locations, gainofficial approval from city officials and property holders to install stations. For more

information, please refer to A2B Bikeshare's Implementation White Paper.

Plan System Logistics

Stage 5: Implementation

Steps needed to properly execute the implementation of abikeshare system.

Finalize Procurement / Contracting

For a pilot program - Create a contract, sign a letter of intent.

For an RFP - Follow the procedure set forth by the RFP.

Ordinance Recognition

Bikeshare systems require official recognition by municipalities.Ensure that there is recognition for the system.

For increased revenues, pass ordinances that allowadvertisements to be placed at station locations.

Station Location Finalization & Installation

Station locations need to be planned and coordinated. Gain approvalfrom city officials and property holders to install stations.

The vendor is responsible for installing the stations.

For more information, please refer to A2B Bikeshare's Implementation

White Paper.

Stage 6: OperationsOnce a bikeshare system is implemented, these factors

must be considered to allow the operation to run smoothly.

Bike Maintenance

It is the responsibility of the vendor to make the bikes, hardware, and software as lowmaintenance as possible.

It is the responsibility of the operator to oversee the system and perform regularmaintenance.

Membership Pricing

Prices for memberships need to be decided. Most pricing schemes have annualmemberships for common users between $50-$100, overcharge fees come after 30 minutes,and the first 30 minutes is free for members and relatively inexpensive for first-time riders. For

more information, please refer to A2B Bikeshare's Funding White Paper.

Liability

Riders sign liability waiver forms before riding on a bike. The vendor,operator, and municipality need to carry general liability insurance.

Liability is finalized in the contract process.

Expansion / Repurchasing

Expansion and repurchasing equipment is something to consider for thefuture. As bikeshare systems become profitable, expansion can happen

without the help of extra government subsidies.

The 6 Stages of Bikesharing

Operations

Implementation

Preparation

Goals & Expectations

Research

Why Bikeshare?1.

2.

3.

4.

5.

6.

Goal: To understand the benefits of bikesharing and see if bikesharingmakes sense to invest in.

Goal: To know the developments in fourth generation bikeshare technologyand how to get bikeshare in your community.

Goal: To establish what you want from a bikeshare system and who isresponsible for organizing the various preparation steps for the project.

Goal: To have funding ready, select a vendor and plan system logistics(e.g. station locations).

Goal: To finalize station locations, ensure that local ordinances authorizebikeshare, and allow the vendor to install stations.

Goal: To know who's responsible for overseeing the system (coordinatedwith vendor) and ensure the system will run smoothly.

Sources:

Used an aggregate of bikeshare surveys to create data points, references: Shaheen et al."Public Bikesharing in North America: Early Operator and User Understanding" MinetaTransportation Institute, San José State University. LDA Consulting (May, 2013) 2013Capital Bikeshare Member Survey Report.

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2 Shaheen et al. "Public Bikesharing in North America: Early Operator and UserUnderstanding" Mineta Transportation Institute, San José State University.

3 Gotschi, Thomas (2011) �Costs and Benefits of Bicycling Investments in Portland,Oregon� Journal of Physical Activity and Health, Human Kinetics Inc.

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Sierra Club �Pedaling to Prosperity�.

Used an aggregate of bikeshare surveys to create data points, references: Shaheen et al."Public Bikesharing in North America: Early Operator and User Understanding" MinetaTransportation Institute, San José State University. LDA Consulting (May, 2013) 2013Capital Bikeshare Member Survey Report. Boulder B-Cycle 2011 Annual Report.

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LDA Consulting (May, 2013) 2013 Capital Bikeshare Member Survey Report.

Boulder B-Cycle (2011) Boulder B-Cycle 2011 Annual Report.

8 The Clean Air Partnership (February 2009) �Bike Lanes, On-Street Parking and Business AStudy of Bloor Street in Toronto�s Annex Neighbourhood�

LDA Consulting (May, 2013) 2013 Capital Bikeshare Member Survey Report. 9

10 New York City DOT (2012): �Measuring the Street: New Metrics for the 21st Century Streets�