A PRIMER ON BICYCLE SHARE

PROGRAMS AND BENEFITS

DAN PESATURO | DECEMBER 16, 2008
INTRODUCTION
This report recommends the San Francisco Board
of Supervisors approve a feasibility study for a San
Francisco bicycle share program.
Bicycle share programs are becoming increasingly
popular in major cities throughout the world. Several
European cities are leading the way, demonstrating
such programs have several positive effects on ur-
ban cores. Bicycle share programs are not new. In
fact, the Netherlands piloted their infamous ‘’white
bicycle” program in the early 1960s.1 Bike share pro-
grams have developed significantly since this early
initiative, and are now viable transportation policy
measures.
A bicycle share program is a unique opportunity for
San Francisco to improve its transportation infra-
structure and become more environmentally friendly.
Amazingly, the most recent models of bike share
programs come at no cost to the city. The program
itself, as you will see, has numerous benefits for the
city. Many cities in Europe and Asia have successful-
ly implemented bike share programs. Now is the time
to explore a bike share program for San Francisco.
Banner Image Source: Cedric Bonhome, ”Velib,” Wikipedia Commons, http://commons.wikimedia.org/wiki/File:Vélib%27.jpg
(accessed Dec ember 9, 2008).
1
David Holtzman, “Share-a-Bike,” Planning, May 2008, 21.
2
Luc Nadal, “Bike Sharing Sweeps Paris of Its Feet,” Sustainable Transport 19 (Fall 2008): 10-11.
3
Ibid.
4
Holtzman, “Share-a-Bike,” 24.
In recent years, European cities developed a new
model of bicycle share, which take advantage of
current technology and media conglomerates.
These bicycle share programs are based on a
public private partnership and are wildly success-
ful.2 The model entails a partnership with a private
company such as, Clear Channel or JC Decaux.
Initially, a city signs a contract to implement a bi-
cycle share program with a large advertising con-
glomerate. The company agrees to pay for the
cost of the system, implementation, the bicycles,
kiosks, transformation of parking spaces into a
bike share station, and any other costs.3 In ex-
change for advertisement rights the city receives
a bike share program. The advertisements may
be on city billboards, the bikes themselves, or any
other available space. In addition to the bike share
program, cities normally receive the revenue gen-
erated by program.4
This report seeks to persuade the San Francisco
Board of Supervisors to allocate funds for a feasi-
bility study concerning a bicycle share program for
the city. Bicycle sharing programs are not new,
and are already in place in other cities using the
1
public partnership model. This report will demon-
strate the need for a feasibility study by examining
how bicycle share programs work and the benefits
of such programs.
Figure 1: Kiosk and Bicycles at a Self-Service Station
Source: Project for Public Spaces, “Paris on Two Wheels”, Project
for Public Spaces, http://www2.pps.org/news/archive/2008/04/
(accessed December 10, 2008).
HOW DOES THE BICYCLE
SHARE PROGRAM WORK?
Most current models of bicycle share programs
work using automated kiosks. Much like ATM’s, the
user pays for the service by credit card at a kiosk.5
Kiosks and available bicycles comprise self service
stations, strategically placed throughout the city.6
Figure 1 illustrates an example of a self-service sta-
tion, with a kiosk and bicycles available for loan.
Stations are usually created by removing parking
spaces and building bike share infrastructure in its
place. However, other methods are possible, which
may be more suitable for San Francisco.
The automated self-service stations are very suc-
cessful and are used in the following cities around
5
Nadal, “Bike Sharing Sweeps Paris of Its Feet,” 9.
6
Ibid.
7
Ibid.
8
Ibid.
9
Ibid.
the world: Rennes, Amsterdam, Vienna, Lyon,
Oslo, Brussels, Stockholm, Helsinki, Barcelona,
London, Seville, and Paris.7 The new generation
of bicycle share takes advantage of technology.
Automated systems keep operating costs down,
and are a key component to the model.
At each station, users sign up for memberships via
automated kiosks. Next the user receives a pass
code, which allows access to bicycles throughout
the network.8 The membership cost is a nominal
fee charged on either a yearly, monthly, or weekly
rate. As a member, the user has the ability to pick up
and leave a bike at any station around the city.9 The
first half hour is usually free, then each additional
half-hour the user is charged on a sliding scale.
Table 1 provides a sample fee structure. Moreover,
the user pays a refundable deposit in order to safe-
guard against theft. The incremental increase in
usage costs is designed to encourage short trips.
Table 1: Rental Costs for Velib Bicycle Share
Incremental Total
Time Period Charge Charge
First 30 minutes Free $0
Second 30 minutes $1.30 $1.30
Third 30 minutes
(1-1.5 hours) $2.60 $3.90
Every half hour
increment afterwards $5.20 $9.00
Source: Nadal, “Bike Sharing Sweeps Paris Off Its Feet,” 9.
Note: Data is based on the Paris bicycle share program, known as
Velib. The monetary values are converted from Euros. Usage costs
are in addition to a membership fee and a deposit to prevent theft.
2
The location of the stations is crucial. Station loca- “bike sharing lets people make short trips of a few
tion is one of the most challenging aspects of de- miles in a densely developed area served by other
signing a bike share program.10 Stations should be forms of transit.”11 A bicycle share program can act
located near transit centers, points of interest, pub- as the catalyst for a change in transportation mode
lic spaces, and parks in order to maximize ridership. choice and reduce traffic in San Francisco.
It is very important for the user to find stations easily Figure 2: A Self-Service Station
throughout the city, so bikes can be returned at the
leisure of the user.

Using the public private partnership model and

existing technology, a bicycle share program can
bring several benefits to the city of San Francisco.
Now that we have examined how bicycle share pro-
grams work, let us next turn to the several benefits
of a bicycle share program.

BENEFITS OF A BICYCLE
SHARE PROGRAM
Bicycle shares can reduce auto dependency, allevi-
ate traffic, successfully work with other policy mea-
sures, improve air quality and pollution, and gener-
ate revenue.
A bicycle share program fosters new cycling en-
thusiasts, helping to reduce auto dependency in
the city. Public bike access provides an alternative
choice of transportation for San Franciscans. The
aim is to make bicycles a viable option for short
trips, previously made using an automobile. The
program makes bicycles available to public, many
of who may never have thought to cycle. Encourag-
ing bicycle ridership can reduce the number of cars
on the road and in turn alleviate traffic.
Source: Chain Reaction Bikes, “Velib,” Chain Reaction Bikes,
http://picasaweb.google.com/lh/view?q=velib&uname=ChainR
eactionBicycles&psc=G&cuname=ChainReactionBicycles&filte
r=1#5096865817151259890 (accessed December 10, 2008).
The implementation of a bicycle share program
should be in conjunction with other planning tech-
niques. It is evident from recent policy initiatives
and projects, the city of San Francisco is moving to-
wards a more sustainable city. Some of these proj-
ects pushing green policy are the Market-Octavia
Plan, Academy of Sciences, the Transbay Terminal
and accompanying redevelopment plan, and most
recently the possibility of a congestion pricing sys-
tem. A bike share program can help to supplant the
need for an automobile and make such policy initia-
tives and projects more successful.

A bicycle share program will alleviate congestion
in the urban core of the city. Bike share seeks to
create alternative choices for shorter trips, previ-
ously taken using either a form of motorized or pub-
lic transit. A sustainable planning expert contends:
Bicycle shares have environmental benefits. Ze-
ro-emissions vehicles, such as bicycles, reduce
greenhouse gases. Thus a bicycle share program
improves air quality and pollution in San Francisco.
A share program is an effective way to get more

10
Nadal, “Bike Sharing Sweeps Paris of Its Feet,” 10.
11
Holtzman, “Share-a-Bike,” 23. 3
bikes on the road and contribute to an environmen-
tally sustainable society.
A bike share program will also generate revenue for
the city. The public private partnership model comes
at no cost the city. In exchange for advertising space,
it is possible to contract a private company to fully
fund a bike share program. Furthermore, the rev-
enue gained from the membership and share fees
is allocated to the city. It is estimated Paris will net
over 30 million Euros (38 million US dollars) a year
in revenue from its bicycle share program.12 Though
San Francisco will be hard pressed to match this
revenue stream due to the difference in population
between the two cities. However, it is reasonable
to assume the city can generate millions of dollars
from a bike share program. A feasibility study will
assess the revenue opportunities for the city.
Figure 3: Bicycle Share in Use
Source: Josh’s Public Gallery, “Paris 2007,” Picassa WebAlbums, http://
lh5.ggpht.com/_ZvlTkWwbUJI/RwLuKAneRYI/AAAAAAAACFM/
oAwJFvbtEs0/P1010040.JPG (accessed December 15, 2008).
The bicycle share program has numerous benefits.
Quite simply the city can improve its transportation
system, the environment, and the economy. Bike
share can reduce auto dependency, alleviate con-
12
Nadal, “Bike Sharing Sweeps Paris of Its Feet,” 10.
13
Nadal, “Bike Sharing Sweeps Paris of Its Feet,” 11.
14
Ibid.
15
Holtzman, “Share-a-Bike,” 24.
gestion, dovetail with current policy initiatives, im-
prove air quality and pollution, and generate rev-
enue. With more bikes available to the public, San
Francisco can make strides in becoming a sustain-
able city with alternative transportation choices.
The benefits of a bike share program demonstrate
the need for a feasibility report to explore bike share
opportunities for San Francisco.
MOVING FORWARD WITH BIKE SHARE
The public private partnership works successfully
in other cities. This model demonstrates how easy
implementation is, at no cost to the local govern-
ment. Also, the city has a history with similar deals
in place with Clear Channel. However, the city
could seek to form a deal with another company.
The competitive bidding process for advertisement
rights is a positive development for the city.13 Bike
share implementation is attractive to both citizens
and lawmakers because it is an urban amenity that
will come at no cost.14
The city is currently working on a Bicycle Master
Plan to improve infrastructure, lanes, and other bi-
cycle related amenities. A bike share program will
allow those without a bike to take advantage of
such improvements and make the plan worthwhile
to all citizens. There is sufficient evidence to sup-
port the claim that more San Franciscans will ride
bikes if the bike share program is implemented. For
example, in Lyon, France 96% of participants in the
bike share program had never used a bike in the
city center before.15
This report examined the public partnership model
of bike share. Furthermore, it sought to persuade
the Board of Supervisors to approve a feasibility
4
study through detailing how bike share programs Table 2: Parisian Bike Share at a Glance
work and the numerous benefits from a program.
As San Francisco develops new policy measures, NAME OF SYSTEM Velib
lawmakers must consider a bicycle share program
as an intriguing transportation alternative. The ar- CITY POPULATION 2.15 million
guments put forth in this report urge the Board of
Supervisors to approve a feasibility study in order LAUNCHED July, 2007
to more closely examine a bike share program for
San Francisco. BICYCLES 10,000 (20,000 estimated by
the end of 2008)

SELF-SERVICE
750
STATIONS

BIKE AVAILABILITY Year-round

Smartcard (Smartcards can be

TECHNOLOGY purchased in a variety of places,
including kiosks at the stations)

OPERATING JC Decaux
COMPANY

Source: The Forum for Urban Design and Storefront for Art and
Architecture, “Exploring Bike-Shares In Other Cities,” The New
York Bike-Share Project, http://www.nybikeshare.org/ (accessed
December 9, 2008).

5
BIBLIOGRAPHY

Bonhome, Cedric. “Velib.” Wikipedia Commons. http://commons.wikimedia.org/wiki/File:Vélib%27.jpg

(accessed December 9, 2008).

Chain Reaction Bikes.”Velib.” Chain Reaction Bikes. http://picasaweb.google.com/lh/view?q=velib&un

ame=ChainReactionBicycles&psc=G&cuname=ChainReactionBicycles&filter=1#50968658171
51259890 (accessed December 10, 2008).

The Forum for Urban Design and Storefront for Art and Architecture. “Exploring Bike-Shares In Other
Cities.” The New York Bike-ShareProject. http://www.nybikeshare.org/ (accessed December 9,
2008).

Holtzman, David. “Share-a-Bike.” Planning, May 2008.

Josh’s Public Gallery. “Paris 2007.” Picassa Web Albums. http://lh5.ggpht.com/_ZvlTkWwbUJI/RwLu

KAneRYI/AAAAAAAACFM/oAwJFvbtEs0/P1010040.JPG(accessed December 15, 2008).

Nadal, Luc.”Bike Sharing Sweeps Paris of Its Feet.” Sustainable Transport 19 (Fall 2008): 8-13.

Project for Public Spaces. “Paris on Two Wheels”, Project for Public Spaces. http://www2.pps.org/
news/archive/2008/04/ (accessed December 10, 2008).