This idea, like its cousin car sharing, that seems at first glance to be a really good transportation innovation, doesn’t look so good—though the promise is there—as the details emerge in this article from Fast Company.
An excerpt.
“On the surface, nearly all of the world's 100 or so bike-share programs look strikingly similar. Most systems rely on unmanned rental kiosks that are managed by automated computers, and bicycles are equipped with advanced locking mechanisms. Many of the the bikes use customized parts to stave off thieves who are looking for spares.
“The differentiating factor in these programs is how they pay for themselves. Most systems, particularly those with more than 500 bicycles, rely on advertising--and the lucrative deals the agencies strike with host cities--to stay afloat. Other programs depend on money from local communities, like Montreal's Bixi. Still others are funded by private investors (London's OYBike). Many of the private programs have disappeared, and the handful that remain tend to be limited to college campuses, business parks or specific neighborhoods. "Bike sharing just isn't profitable by itself," Ericson says.”
