Public Bike Sharing: Final Guidance Note
Public Bike Sharing: Final Guidance Note
Customer: Contact:
European Cyclists’ Federation Stephanie Cesbron
Ricardo-AEA Ltd
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views expressed therein. 09 January 2015
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Table of contents
1 Introduction ................................................................................................................ 1
1 Introduction
The purpose of this note is to provide short and simple guidance on public bike sharing
(PBS) for ECF’s networks who are interested in the concept, with a focus on the relationship
between PBS, the role of emerging technologies and EU policies. More specifically, it aims to
provide some user-friendly information on:
What are the policy implications and advantages of the latest PBS technologies currently
being developed or implemented in terms of EU new technology policies and
investments?
Can a stronger case be made for PBS as a new technology in order to better benefit
from the EU policy framework and funding streams that support new technology
research and deployment?
To do this we examine:
What new technologies a policy-maker / funder / operator should be aware of in the
context of PBS;
What their respective merits and challenges are in order to inform the design of the
scheme.
The note is structured into four sections: the first briefly presents the concept; the second
summarises the main practical considerations to bear in mind when considering the
implementation of PBS, including costs, business models and key enablers and barriers; the
third investigates the latest technological developments and their relative strengths and
weaknesses; and the fourth summarises the key implications and advantages of PBS in
terms of EU policy.
The briefing can be used to encourage greater investments in PBS by making EU policy
makers and transport funders aware of the possible relationship of PBS to areas such as
Intelligent Transport Systems and electric mobility; and to support the work of researchers,
developers and businesses in the sector by signposting possible EU-level policy support and
even funding for their work. It should also give city managers a brief overview of how PBS
can be integrated into proposals for funding as part of developments such as SMART Cities
and Intelligent Transport Systems.
It is complementary to ECF’s much wider portfolio of advocacy for cycling in general.
ECF’s vision for the whole of cycling (not just public bike sharing) is that levels of cycling
could double in the EU with the right policies and investments. This briefing was
commissioned as a resource to help achieve that vision.
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Among these, the first two are more pertinent to large-scale systems, while the latter two are
characteristic of small-scale systems.
The most common approach overall relies on leadership from local / city authorities. In most
cases, a contract between the municipality and the operator of the scheme is agreed. In
2010, 27% of the world’s public bike sharing schemes were operated by local Governments,
followed by JC Decaux (23%) and Clear Channel (16%). Having approved of the concept,
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local authorities then tend to be involved throughout all stages of the project: consulting with
stakeholders and individuals; commissioning feasibility studies from consultants to evaluate
costs and technical requirements; contracting an operator or procuring the bikes and stations
themselves, depending on the business model chosen. Operators should be involved as
early as possible in the process in order to make use of their technical and operational know-
how.
Source: OBIS
As mentioned earlier, there can be significant variations depending on the technical features
of the model (technologies, network size, logistics, city-specific characteristics). For instance,
a scheme without stations or a scheme with stations which do not need any groundwork (e.g.
solar or battery powered stations) can be implemented at a fraction of the costs of
conventional station-based schemes. The Velib experience in Paris also showed that there
can be unexpectedly high costs linked to theft and vandalism.
In order to cover the costs of implementing PBS, there is a range of financing models. The
main financing sources from an operational point of view are registration charges and usage
charges paid by the customer. As many systems offer a 30-minute-period free of charge for
each ride, registration charges are most likely to be the most important income source rather
than the usage charges. As a result, subsidies are needed for most PBS schemes because
revenues from the scheme hardly ever cover the operational and investment costs. Depend-
ing on the type of contract with the operators, scheme can be co-financed by direct
subsidies, various advertising contracts, sponsorships (whole scheme, single components,
stations or bikes), parking enforcement incomes or congestion charges. Capital investment
to set up the scheme may require grants from local authorities, be funded by the operating
partners or by a public private partnership of some description. Generally, local authorities
should explore the possibility of blending different sources of income to help support the
long-term viability of the scheme.
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Availability of a safe cycling infrastructure incl. cycle lanes or paths, direction signs for longer cycle routes,
different safety measures at places of interaction with cars (such as junctions) and pedestrians (such as zebra
crossings and where cyclists pass bus stops), safe and secure cycle parking places.
User accessibility. This covers all measures taken to make the system easy to access, both in space and time.
It covers the ease of the registration process; the density of stations and bikes; the rapid repair of
malfunctioning stations and bikes; and the hourly and yearly opening times.
Bike and station design. Resilient and visible bikes are needed to weather wear and tear and deter theft.
Wider transport policy. PBS should always be combined with other transport measures in order to be part of an
efficient and sustainable transport system. This includes in particular the need for integration to the public
transport, in terms of information (e.g. multimodal Info-traffic App in Lyon); physical infrastructure (i.e. stations);
access and charges (with one card and integrated tariffs).
Existing high levels of bike ownership and use tend to result in a low participation in PBS.
Compulsory helmet use can significantly hinder the success of the scheme.
Planning process and space limitations can create delays and constraints on the size and location of stations.
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3 Technology developments
There is a wide range of technology options for PBS depending on the level of investment available to the scheme operator and the utility to be
delivered to the user. The emerging group of technologies is sometimes referred to as “4th Generation Public Bike Sharing”, however because of
the divergent nature of the different options we believe it is unlikely that one single development will be recognised as the future standard.
Therefore the report avoids the use of one overarching term and instead provides an overview of the broad trends that are emerging.
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3.2.1 Bikes
Most PBS schemes currently in operation make use of bikes that cost considerably more
than a basic roadworthy consumer model. This is because experience has shown that
without upfront investment in making the bikes more durable and easier to maintain, they
tend to break too quickly for the scheme operators to be able to keep a good number in
circulation at a reasonable operating cost. Although it is essential to ensure that working
bikes are sufficiently durable to keep them in circulation, increasing durability also tends to
detract from user-friendliness to some extent: strong frames and encased parts make bikes
heavier, and ‘puncture-proof’ solid rubber tires make the ride bumpier. A balance ought to be
struck between making the bikes durable and making them pleasant to use.
New features such as electrification and on-bike information screens are being developed as
a means of adding to the convenience and fun of the user’s experience. These technologies
have the potential to significantly boost ridership both by attracting new users and increasing
the frequency of use amongst existing customers. For instance, battery assist may prove an
important draw in hilly areas. However, these undeniable advantages must be assessed in
the context of the additional costs they involve and, in the case of e-bikes, possible concerns
about safety and speed.
Other emerging bike technology has been put forward as a means of saving costs. Security
technology such as alarms may reduce the rate of theft and vandalism and therefore might
partner well with bikes with expensive added features such as battery power (although the
security features themselves also add to the up-front costs).
A more radical bike technology change with potentially very significant – but as yet unproven
– implications for costs is “smart locking” bikes without docks. These bikes are fitted with
locks and Global NavigationSatellite Systems (GNSS – such as GPS or the European
Galileo), and users can “return” them into the system by locking them almost anywhere they
like because their location is tracked and can be shared with other users. These systems
remove or reduce the need for docking stations, which form a significant part of the upfront
costs of a scheme. For instance, one bike share company estimated that their smart-locking
bikes would cost approximately €1,900 each and prevent the need for €5,000 of heavy
infrastructure per bike1. However, removing docking stations potentially generates other
scheme costs and disbenefits – these are discussed in more detail in the next section.
There are therefore exciting developments ahead for bikes which can extend the appeal of
PBS for users (e.g. e-bikes, smart locking, on-bike information). A scheme operator will
make a final choice of bike technology depending on the net balance between the
technology’s marginal positive impacts on the bikes’ durability and maintenance
requirements, improved safety and security, and increased ridership against the potential
increases in investment costs. If the additional investment costs involved do not
significantly improve the uptake of PBS or reduce total scheme costs, investing in the
latest bike technology will not be justified.
1
http://www.bikebiz.com/news/read/newcastle-s-scratch-bikes-releases-bike-sharing-technology-to-all/
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3.2.2 Stations
Bicycle stations are a costly aspect of current PBS schemes (around 70% of capital costs
and 20% of operational costs). They also take up space in areas (i.e. city centres) where it is
typically a scarce resource. Some of the emerging technologies for PBS stations offer the
potential to address these constraints.
One of the reasons docking stations are costly is that they usually require groundwork to
install – the docks and payment kiosks need connecting to the electricity supply, and they are
also often connected to a fixed line telecommunications system for relaying data to a central
location. One solution to this is to provide docks without groundwork through use of solar
panels for power and GSM2 or wireless connection to a fixed line for networking. This allows
the stations to be redistributed across the city in order to better respond to travel patterns
and provide greater flexibility in the management of the network. However, not all areas will
have enough coverage by the sun or the GSM network for those solutions to work, nor are
the operating costs associated with those solutions negligible.
A more sophisticated option is to use new “smart-locking” technology and GNSS tracking on
bikes and dispense with docking stations altogether. This system has been pioneered by
Deutsche Bahn in several German cities as “Call a Bike” – the bikes are locked and unlocked
with a system of authentication codes which the user obtains by calling a hotline. Parked
bikes’ locations are shared online so that users can find them on their smartphones. Such
schemes require less investment in ‘heavy’ infrastructure and provide great flexibility for
users. However, the overall cost and operational implications of the technology are not fully
understood at this stage. Allowing users to leave bikes anywhere is likely to add to the
burden of redistributing them. In addition, although abolishing docking stations may make
things more convenient for some users some of the time, it also has the potential to make the
scheme more unpredictable for users. Knowing that there are particular points at which you
will usually be able to find a bike is arguably an important positive feature of PBS. Finally,
getting rid of docking stations also requires the scheme owner to think about the likely
consequences for tourist users – how will these people be made aware of the existence of
the scheme and how to use it? How will they know where to find bikes – considering that
many tourists may not be willing to pay data roaming charges on their smartphones when
travelling abroad?
A third option for the future development of PBS schemes is a hybrid one, which involves
providing some docking stations as well as the option of returning bikes into the system
outside of docks – possibly at a higher price, to incentivise better distribution. Indeed, Call a
Bike now provides basic concrete blocks as docks. The smart locking technology negates
the need for power or networking in the docks so they are inexpensive to install and easily
relocated or expanded.
The potential game-changer with regards to docking stations in PBS is their disappearance
and replacement by on-bike locking systems allowing bikes to be left anywhere. While this
is appealing in terms of flexibility, the net impacts of this approach in terms of costs and
convenience of use is still unclear and further analysis would be needed before making a
final decision to adopt this technology.
2
Global System for Mobile Communications, i.e. the system which includes 2G, 3G and 4G
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The key area for development in user payment systems relates to their integration with other
existing ticketing systems across the wider urban transport network. Doing this would
increase the propensity of users of public transport to try out PBS and help to implement a
seamless travel offer across non-motorized transport. This is a core tool to support a shift
away from cars in urban areas. Efforts are being made in this direction but there are still
significant barriers, mostly related to data handling, technology standards and costs.
Integrated payment systems require: investment in appropriate software and hardware;
designing interoperable standards and specifications across different systems; and
cooperation between different operators to allocate revenues across modes.
The key area for innovation in user payment systems relate to integrated ticketing where
significant progress is still needed but the potential benefits for PBS in particular and urban
transport networks in general are great. It is an essential component of a city-wide, low
carbon transport offer. At the moment, the most advanced system is the Taipei Card which
combines all public transport ticketing, PBS and some low value purchasing power in a
single travel card.
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benefits of each type of power train according to local circumstances and policy priorities.
There are small scale emerging examples of cargo-bikes being used to service and re-
distribute bikes which is a positive integration with overall cycling promotional aims.
Optimising bicycle redistribution operations is a complex problem and at least some
investment should be made in addressing the problem computationally (using software),
although there is no ‘perfect’ algorithm for optimising redistribution and some amount of trial
and error will still occur.
Another area of technology for redistribution relates to the use of differentiated pricing by
origin and destination in order to reduce the costs of redistribution (by incentivising users to
return their bicycles to more useful locations) without otherwise affecting the scheme’s
operating costs. However, it could also affect the perceived benefits of the scheme – users
may feel unfairly penalised if they find they are being charged significantly more than the
average journey price in order to return their bike to a station more convenient to them.
Dynamic differentiated pricing (i.e. that varies in real-time) might in theory provide even
better redistribution, but it also detracts from the predictability of the scheme in the mind of
users.
The main potential game-changer for redistribution systems would be the abolition of fixed
docking stations. Such schemes would probably be wise to use some form of incentive
structure that encourages returning bikes to common locations (such as low-tech bike
racks, or even broadly defined street corner areas) to cut down on redistribution costs and
improve the predictability of scheme.
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ECF gratefully acknowledges financial support from the European Commission