Bike sharing

The term bike sharing is applied to short-term bicycle rental schemes that allow persons to collect, use and drop off bicycles within a given service area (commonly a city, but may also be a more limited zone, as in a university or corporate campus). The traditional bike sharing model locates bicycles at specified, purpose-built points within a designated zone from which users can rent and return them.

Bike sharing has its inception in the 1960s but was hampered in its growth by problems related to not being able to gain real-time information about the bicycle network, track the bikes and properly secure them. In the present, these difficulties have been overcome by technology. Bicycle sharing networks can now be monitored in real-time, individual bicycles can be electronically tracked and can even be remotely secured.

The 2000s have seen a boom in bike sharing due to its relatively low costs compared to other transportation infrastructure, a push towards "green" cities, and through the support of regional and municipal governments and academic institutions. In 2004, only 11 cities had embraced bike sharing. That number has since mushroomed with more than 1,000 public bicycle rental schemes of various kinds running in 50 countries across five continents at this writing (2017). In the United States, of its large urban areas, only Detroit and St. Louis lack bike sharing services.

In addition to public and mixed public and private bike sharing programs, there has been an uptick in private businesses, including several start-ups, entering the arena. Bike sharing is especially widespread in Asia and in China in particular, where a single bike sharing system can encompass as many as 200,000 bicycles.

Another major differentiator among bike sharing providers is whether the service offered employs designated bicycle kiosks (also known as docks) or is a dockless bike sharing network. Less significant differentiators are the models of bike used, and the payment methods a service allows.

Bike Sharing Service Business Models

Private bike sharing services earn profits through ...

Rental fees on a per ride basis and subscription
Required security deposits - funds which can be mined for interest or otherwise invested to the benefit of the company. This represents a lucrative and possibly huge pool of income for bike sharing companies. China's Mobike with reportedly 100 million registered users as of June 2018, given their deposit policy, will have collected over $4 billion USD.
Data mining and data sales: Users and usage patterns can be easily tracked and documented and present marketable data for retail businesses, restaurants, taxi services, and other concerns as well as for local government for urban planning and infrastructure usage
Advertising - Bike sharing companies can place ads on bicycle chassis or kiosks and in applications used to locate and rent bikes

Bike Sharing Advantages

For users:

Convenience
Affordability
Benefits to health and sense of well-being
Expansion of personal mobility
Time management and time savings advantages
Financial savings (depending on costs)
Freedom from the costs, upkeep, and responsibilities of bicycle ownership

For communities:

Helps facilitate and promote density (from a YIMBY perspective)
Reduced car traffic and congestion
Reduced air and noise pollution
Extends existing transit networks and their reach
Can expand the visibility and social acceptability of cycling in general (a low impact form of transportation)
Encourages fitness
Attractive to commuters and tourists alike
Possible increases in social cohesiveness

Note that automobile-centric communities experience issues around the accessibility and affordability of transportation, pollution and other environmental impacts, sustainable growth, and social cohesion.

Issues Associated with Bike Sharing

Underutilization of services that threatens viability in some places
Rigid regulations that lower the convenience of using the service or raise the costs to implement or maintain it
Lack of accessibility/concerns around inclusivity for residents who may be lower income, older, living with disabilities and/or lack a smartphone, are unbanked, may not have access to credit cards or online payment methods or not be tech-savvy
Concerns around tracking, privacy and the use/sale of user data
Safety concerns related to biking, often paired with a lack of cycling infrastructure in the area in which the bike sharing service is being implemented
Concerns specific to dockless bike sharing around the hazards and visual clutter possibly presented by bikes that may be left anywhere or illegally parked in public space
Friction around interactions with pedestrians and motorists
Struggles over ceding space for kiosk-based bike sharing parking