Reference no: EM131040555
Sharing Bicycles
A bicycle-sharing system, as the name suggests, is a service that makes bicycles available for individuals to use on a very shortterm basis. The overall goal of these systems is to provide free or affordable access to bicycles for short-distance trips in urban areas to reduce traffic congestion, noise, and air pollution. Bike-sharing systems have progressed through three generations: the first generation, called white bikes (or free bikes); the second generation of coin-deposited systems; and the third generation, or information technology-based systems. An emerging fourth generation includes all of the components of third-generation systems, but with one major difference: Fourthgeneration systems are linked with public transit.
The goal is seamless integration of bike sharing with public transportation and other modes of transit, such as taxis and carpooling. Fourthgeneration systems will locate bike-sharing stations and parking conveniently near transit stations. In addition, they will coordinate transportation schedules, such as bus and train arrivals and departures. Finally, they will provide customers with a single payment smartcard that allows access to all of the available transportation options. Let's take a closer look at one fourthgeneration system, Alta Bicycle Share. On a Washington, DC, morning, Alison Cohen rides her bicycle to work. She makes the 2 mile trip in 10 minutes-a trip that would otherwise entail a 20 minute subway ride, a 40 minute walk, or a $7 cab ride. Cohen is president of Alta Bicycle Share (www.altabicycleshare.com), the company behind Washington's bicycle-sharing program.
Formed in 2010, Alta combines three companies: (1) Alta Planning & Design, based in Portland, Oregon, which designs bike lanes and parks; (2) Montreal's Public Bike System Company, which owns the credit card processing technology; and (3) Alta itself, which bids for government contracts and runs operations in cities across the United States, as well as in Melbourne, Australia. In mid-2013, Alta had bicycle-sharing services in Washington, DC, Chicago, Boston, and Chattanooga, Tennessee, with New York City, Portland, Oregon, and Columbus, Ohio, soon to be added. How does this system operate? Basically, the participating cities buy the bikes and install docking stations where users can rent them with a credit card. Alta maintains the bikes and collects payment. In return, it receives either part of the revenue generated by the rentals or a flat annual management fee.
Significantly, Alta is reportedly turning a profit. However, the company faces competition from B-Cycle (www.bcycle.com), which operates 1,500 bicycles in 16 cities, including Chicago and Denver. Interestingly, the rent-a-bike phenomenon is also being adopted by the Beijing municipal government. To ease the city's notorious traffic jams, the Beijing China Municipal Commission of Development and Reform is setting up 500 rental kiosks around the city to offer residents the choice of more than 20,000 rental bikes. Sources: Compiled from C. Lyon, "Portland Bike Share Moves Forward," Alta Bicycle Share Press Release, December 12, 2012; "Why the Latest Delay to the Bike Share Program May Not Be the Last," The Gotham Gazette, December 2012; "Emanuel's Bike-Share Program Hits Speed Bump," Fox News, August 15, 2012; M. Pamer, "California Gets Its First City Bike-Sharing Program in Anaheim," NBC News, August 9, 2012; G. Hesselberg, "B-Cyclists Log Thousands of Trips in Madison," Wisconsin State Journal, February 3, 2012; "More Rental Bikes, Subway Lines to Ease Beijing Traffi c Congestion," English.xinhuanet.cn, January 6, 2012; S. Shaheen and S. Guzman, "Worldwide Bikesharing," Access Magazine, Fall, 2011; H. Coster, "New Commute," Forbes, June 27, 2011;
Questions
1. Describe the problems involved with setting up a bicycles haring program in a new city.
2. Describe how information technology can help address these problems.
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A bicycle-sharing system
: A bicycle-sharing system, as the name suggests, is a service that makes bicycles available for individuals to use on a very shortterm basis. The overall goal of these systems is to provide free or affordable access to bicycles for short-distance t..
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