Is bike share bad for the bike business?

[fiamme red]

http://www.bicycleretailer.com/retail-news/2014/06/13/fred-clements-bike-share-bad-business#.U5uII5RdW1U

[fogrider]

Interesting. Who is maintaining the bikes? Maybe they should have ships nearby provide the maintenance contracts. I gotta think any real cyclist will want their own better bikes for weekend rides.

[unterhausen]

fascinating question. My observation over the years is that most bike purchases are made because someone thinks they want to ride a bike, but they never really do it much. I think the number of bikes that never move out of their place in the garage is pretty large. I see a lot of pristine bikes out on bulk trash day. Of course, most of those are bike-like-objects and people hesitate to throw out something that they spent more money on. But that is a long winded way of saying that the people that think they might like to use a bike can go rent a bike share bike instead.

Of course, maybe there will be more people that get hooked on cycling that way who end up buying a nicer bike.

[cinema]

reason I use bike share when I'm in nyc is because my bike won't get stolen. bike theft hurts bike sales more.

[jamesutiopia]

There's a distinct lack of data here, but getting more people to ride a bike (any bike) more regularly seems like it should be good for the bike biz overall.

Perhaps some shops will need to evolve their business plan-- shared bikes could dent sales at a shop that specializes in selling bikes that purchasers don't ride (that business is already under more formidable pressure from the big box stores), but if even a fraction of the users of the Citi program decide to buy a nicer steed there will be plenty of new purchasers in the market for bikes and service.

IMO, the rollout of the NYC bike share program was superbly managed. They had problems (of course), but they are the kind of problems you want to have.

[Louis]

+1

If a bike shop can't find a way to benefit from a bunch of additional people now riding low performance but convenient bikes on a regular basis, then there's a problem with the bike shop.

There's a distinct lack of data here, but getting more people to ride a bike (any bike) more regularly seems like it should be good for the bike biz overall.

[Ahneida Ride]

and I quote from the article

"Also, those Citi Bikes are heavy and slow. Should there be a concern that newcomers are getting a bad first impression of adult bike riding in the same way that some in the industry say they're concerned about peoples' experiences with big-box-store-quality bikes?"

[likebikes]

here is another article, this time from the washington post on the same subject:
http://www.washingtonpost.com/blogs/wonkblog/wp/2014/06/09/is-bikeshare-good-or-bad-for-bike-shop-business/?tid=hpModule_a2e19bf4-86a3-11e2-9d71-f0feafdd1394

[Coluber42]

I wonder if this is an example of growing pains that will level out over the long term: where the bikeshare bikes take business away from LBS's in the first few years, but as more and more people use them and get used to the idea, more of those people who started out with just bikeshare memberships are going to start wanting to ride to places without stations, wanting their own bikes that are faster/lighter/able to haul more/right inside the front door/etc. And ten years later LBS's are still around and doing just fine, because more of the population uses bikes regularly and sometimes the bikeshare doesn't cut it.

Of course, that is small consolation to a shop owner who is trying to keep the lights on and is losing business now.

[ceewho]

Thanks for the post; the drug analogy from the original article was pretty hilarious.

Maybe when bikesharers get tired of being dropped by paceliners the they'll decide to upgrade ;)

[happycampyer]

here is another article, this time from the washington post on the same subject:
http://www.washingtonpost.com/blogs/wonkblog/wp/2014/06/09/is-bikeshare-good-or-bad-for-bike-shop-business/?tid=hpModule_a2e19bf4-86a3-11e2-9d71-f0feafdd1394A factor that the author doesn't go into that might explain why the DC bikes shops sales do not appear to have been affected by the bike share program whereas NYC bike shops appear to have been, is that the typical apartment in NYC is smaller and more expensive than in DC (or other cities where bike share programs have sprung up), so the availability of a relatively cheap bike that doesn't take up space on the margin outweighs to a greater extent the desire to own ones own bicycle in NYC.

I think the point about the weather is a good one, though—this past winter was brutal, and that could have been a factor in the decline in bike sales unrelated to the introduction of the bike share program.

It seems intuitive that a bike share program will have at least some impact on bike sales at the lower/commuter end of the sales spectrum, but I would have thought that a bike shop's client base would be diverse enough (commuters, messengers, recreational, family, etc.) that it would be able to adapt to the change in the same way that it would if some other form of public transportation were improved.

[rzthomas]

In Chicago, the bike share program is helping bike retail businesses. Full article at Crain's (Google the URL (http://www.chicagobusiness.com/article/20140618/NEWS07/140619808/youd-think-bike-shops-would-hate-divvy-youd-be-wrong) to read the full article):

"At Kozy's, comfortable, all-purpose commuter bikes are flying out the door, with a 30 to 40 percent jump in sales since the start of Divvy. Sales of all other bike types have remained stagnant. Mr. Chase says half of his customers who use Divvy eventually return to the store to purchase a bike.
�Riders use Divvy rentals like training wheels before committing to a permanent bike,� Mr. Chase said."

[fiamme red]

http://www.dnainfo.com/new-york/20141120/west-village/citi-bike-drove-me-out-of-business-west-village-bike-shop-owner-says

Before Citi Bike started, rentals were about 20 percent of HUB's business, but since then it has dropped to just 5 percent, and sales have fallen as well, he said.

"Believe me, if [Citi Bike] continues to grow, it's going to put a lot of stores out of business," he said.

[MeatPuppet]

I'm a big proponent of bikeshare here in DC, and I think that my use case isn't particularly different from the other yuppies that use bikehsare.

Before I had a bikeshare membership, I had a road bike for recreational riding; these are not substitutes goods in my mind. Since getting a bikeshare membership, I have upgraded road bikes twice.

Before bikeshare, I used the metro/cabs to get pretty much everywhere I didn't walk to. Once I started using bikeshare, I realized that there were a number of areas of town that I could get to much faster via bike than using the metro, and oftentimes faster than a cab. I think this is particularly true in DC where the metro is a hub & spoke network; it can take a surprising amount of time to cover a relatively short distance if your entry and exit points are on different lines. About a year into having my bikeshare membership, I purchased a commuter bike with a rear rack so that I can do grocery runs and get to places with no bikeshare stations and/or unpredictable bike/dock access.

These days, I mainly use bikeshare on barhops and the like when I don't want to keep track of a bike, and want the ability to cab home if things get a bit down the rabbit hole. My commuter bike I use for cargo, and getting places that are not well served by bikeshare. My beat up Jamis is not the sexiest beast of burden, but a heck of a lot faster than a bikeshare bike.

Long story short, over time bikeshare lead to the addition of another bicycle into my life that I wouldn't likely have gotten otherwise. I didn't realize how much better biking was as a means of transportation (rather than simply recreation) until I started using bikeshare.

[fiamme red]

http://www.bicycleretailer.com/retail-news/2017/11/07/brooklyns-red-lantern-bicycles-closing#.WgO_y9QrK9I

Retailer and café Red Lantern Bicycles is closing after seven years in business in Brooklyn's Fort Greene neighborhood...

Additionally, the expansion of the Citi Bike bike share system, now numbering more than 10,000 bikes, has had a negative effect on bike sales, Gluck noted.

"It wasn't this gateway drug I thought it was going to be, where it was heavy and clunky and they'd want to get a new bike. That never happened. There was never a connection. I think the customer is compromising between it not getting stolen, not having to maintain it, and not having to lug it up four flights of stairs," Gluck said.http://www.redlanternbicycles.com/

Dear friends and neighbors,

I regret to inform you that after 7 years of scrapping and fighting for survival on this block, Red Lantern Bicycles will be closing.

The block has changed a great deal since my family set up shop in July of 2011. We opened the bike shop and cafe to create a space to hang out, drink beers, and nerd out about all things bike...

I remember when there was no Starbucks, Citibike, or Amazon Prime. I remember when the things I enjoyed weren't corporately sponsored. I wanted to be a part of that culture. I wanted to create something unique that I could share with folks.It's sad that bike shops that formerly paid their rent by servicing commuter bikes now have lost their customers to Citi Bike, which is sponsored directly by corporations and indirectly by the city (since Citi Bike doesn't pay rent for the street space it uses).

[Louis]

Well, that's a real bummer.

As I said above, I would have bet that a lot more people riding would have created more business for the LBS than it took away. Apparently I was wrong.

[MattTuck]

We just had a section of local rail trail (that was previously a gravel surface) paved, to make it more convenient and attractive for people using it for commuting (among other things).

A few cycling enthusiasts commented on our local listserv that they prefer the gravel and it is more fun for a few different reasons, compared to riding a 10 foot wide strip of pavement.

Moral of the story is that people ride bikes both for recreation and for transportation, and those two do not necessarily overlap. Many recreational riders project their own ideas, values and goals onto transportation based riders and then are confused why they do not behave as expected.

I'd guess that the transportation minded cyclist in NYC trades off dollars between bikes, uber, cab, bus, subway, etc. based on what is most convenient and helps them achieve their transportation needs.

[Louis]

We just had a section of local rail trail (that was previously a gravel surface) paved, to make it more convenient and attractive for people using it for commuting (among other things).

A few cycling enthusiasts commented on our local listserv that they prefer the gravel and it is more fun for a few different reasons, compared to riding a 10 foot wide strip of pavement.

We have a 240 mile "linear state park" bike trail here in MO that's about a 30 minute ride from my house.

https://mostateparks.com/park/katy-trail-state-park

It's gravel, so I don't bother going over to ride it much, but if it were paved I would definitely do it, and it would be pretty neat (but still flat, since it used to be a railroad).

https://mostateparks.com/sites/mostateparks/files/flickrcache/72157626109382606/15242768489.jpg

[Mr. Pink]

Well, I'm using my first bike share during my stay in Verona, Italy right now, so, I'll chime in. First, I can't rent a bike long term, which is possible (an urban bike, I mean) because my AirB&B owner won't let me keep a bike in the building. Then there's the theft thing, which I'm glad not to worry about. But, the bike share could easily inspire a lot of people to go out and buy a bike, locally. First, there are time limits on your use, a half hour free before the clock starts ticking, but, it's not really all that expensive, anyway. Then there's the quality of the bike, which is basically, awful, a result of designing and engineering a one size fits all, theft proof, and incredibly durable machine. After a few rides, I covet even the junkiest the old 90s mtb bike I see somebody ride by on. And, really, as said, it's getting people on bicycles and out there for a minimal fee, and some may decide to check out a new bike if they like the experience. The tourists may even go home and think, hmmm, that was cool, let me hit the local shop.

[cachagua]

...Citi Bike doesn't pay rent for the street space it uses.

This is the part that chaps my hide. By municipal fiat, the bikeshares in Seattle have essentially unlimited real estate anywhere and everywhere in the city, for free. I'm not necessarily opposed to government subsidies to businesses, but this one has gotten no examination or acknowledgement.

This looks like it's separate from the question of bike shops, except really it isn't: if the city is willing to subsidize efforts to get people on bikes, well, who's making more of an effort than bike shops? What additional contribution to the overall goal could bike shops make, if they were relieved of some of their financial burden by a comparable tax break or the like?

[oldpotatoe]

We have a 240 mile "linear state park" bike trail here in MO that's about a 30 minute ride from my house.

https://mostateparks.com/park/katy-trail-state-park

It's gravel, so I don't bother going over to ride it much, but if it were paved I would definitely do it, and it would be pretty neat (but still flat, since it used to be a railroad).

https://mostateparks.com/sites/mostateparks/files/flickrcache/72157626109382606/15242768489.jpg

Looking at it, just go ride it, even on a 'road' bike. There is a 'path' like that on the way to Niwot..when the normal road was closed, I jumped on this dirt path, mostly flat, just dirt, for walkers, dogs and.....bikes..to get to Niwot. Dirt really ain't my thing but it was no big deal...

[shovelhd]

This is the part that chaps my hide. By municipal fiat, the bikeshares in Seattle have essentially unlimited real estate anywhere and everywhere in the city, for free. I'm not necessarily opposed to government subsidies to businesses, but this one has gotten no examination or acknowledgement.

This looks like it's separate from the question of bike shops, except really it isn't: if the city is willing to subsidize efforts to get people on bikes, well, who's making more of an effort than bike shops? What additional contribution to the overall goal could bike shops make, if they were relieved of some of their financial burden by a comparable tax break or the like?

That's a good point. If the bikeshare were run by the government, well, you can't compete with the government so private enterprise has the deck stacked against them. But most bikeshares I'm familiar with are a private enterprise. By donating the land, they are unfairly favoring one particular business over a class of businesses that provide the same service. That's not right.

[josephr]

That's a good point. If the bikeshare were run by the government, well, you can't compete with the government so private enterprise has the deck stacked against them. But most bikeshares I'm familiar with are a private enterprise. By donating the land, they are unfairly favoring one particular business over a class of businesses that provide the same service. That's not right.

the bike shops were supportive with they implemented a bike share program here, but readily admitted they didn't have the personnel nor wanted to deal with the red tape that came with a guv'ment contract. The local bike co-op (read: unemployed hipsters) jumped at the opportunity.

A large part of that though was the guv'ment officials had different expectations. Whenever they talked to the bike shops, they expected the bike shops to provide the service van, tools, etc, and then drilled them all day on their service rates. When they got to the co-op, the co-op said 'we need a big van and tools and have no money,' so the city allowed them to put that as expense item in their budget and there was no haggling over the service rates.

[oldpotatoe]

Well, that's a real bummer.

As I said above, I would have bet that a lot more people riding would have created more business for the LBS than it took away. Apparently I was wrong.

I would have thought so too, and hindsight is always 20-20 but if a bike shop is essentially doing the same thing as bike share..trying to sell and service commuters..and there is a government subsidized ride share comes to town..maybe shift the shop's emphasis to something else besides trying to sell and service commuters.

For commuters, ride share is hard to beat..particularly those who don't want to do the 'lock, worry it isn't stolen, can't bring into your biz', crowd.

[torquer]

The decline of business for bike shops is, in some ways analogous to what's happened with car ownership; it's so expensive to keep a car in the city, Uber and Zipcar step in to offer cost-effective alternatives. Waymo's self-drivers may become the final nail in that coffin.

This is the saddest part of that Red Lantern story:

Red Lantern also ran a Free Bike Program in which the shop would refurbish donated kids' bikes and give them away on the sales floor. Gluck estimates that this summer he got 40 to 50 young riders onto bikes through the program.

"Some people wouldn't know about it, and they'd ask about a bike and the kid would try it out. Then they'd ask how much it was, and I'd say it's free. That was the best moment of my week," he said.

[pasadena]

Rentals are a GREAT resource and great for the bike community. It is a win for casual cyclists, tourists and people that would not ride normally.

It is a zero-risk, easy transportation resource without having the expense of carrying a bike and equipment, renting a car, or relying on traditional public transportaion (which, in LA, is non-existent in many areas).

It will lead to more bike lanes, more focus on the bicycle within the city infrastructure and, eventually, more people integrating cycling in their daily lives.
Once a non-cyclists rides, they will begin to understand and empathize with the advantages and needs of cyclists. That's my belief on it.

What is disheartening is the bicycle industry, once again, failing to change with the times and trends.
This happened with the advent of mass internet sales and now with rental bikes.
It's a tough, tough business for sure. But, the solution is not to stop the spread of cycling and not to complain. It's to be a part of the solution, and meet consumer demands.

The reason i'm a bit passionate about it at the moment is that I've seen mass bike rental schemes at work in other major cities around the world recently and it's fantastic. Sure there have been problems but overall, easy and cheap public transport is a key to building a cycle-centric city.

Starbucks killed a lot of coffee shops initially. But, eventually, as coffee has become di rigueur, it's given rise to a new industry of coffee shops outside of the corporate chain coffees. Now, there are many great independent coffee shops that meet needs that were unimaginable before Starbucks.
I like to think of these bikes as Starbucks.

[Mr. Pink]

This is the part that chaps my hide. By municipal fiat, the bikeshares in Seattle have essentially unlimited real estate anywhere and everywhere in the city, for free. I'm not necessarily opposed to government subsidies to businesses, but this one has gotten no examination or acknowledgement.

This looks like it's separate from the question of bike shops, except really it isn't: if the city is willing to subsidize efforts to get people on bikes, well, who's making more of an effort than bike shops? What additional contribution to the overall goal could bike shops make, if they were relieved of some of their financial burden by a comparable tax break or the like?

Cmon. There's a few things here. It's government stimulus, if you think of it, which isn't a bad thing, if done right. As I said, anything to get people on a bicycle. I'll bet a hundred bucks a lot of bikes have been sold by those very same discriminated against shops, to people who said, hey, that's ok, I'm getting my own! It also gets more bicycles on the streets, and, you know what they say, safety in numbers. Also, the more bicycles and cyclists, the more support for cycling and cyclists from the powers that be. The more cyclists, the more bike shop revenue. And, last, don't kid yourself, every smart city is competing for the 21st economy that young, active people are creating, and they want to live in a walkable and bikable town or city.

Or, maybe, life isn't fair.

Edit: Pasadena articulates it well in the above post. More bikes!

[Elefantino]

+1

If a bike shop can't find a way to benefit from a bunch of additional people now riding low performance but convenient bikes on a regular basis, then there's a problem with the bike shop.

This.

[cribbit]

It may be harsh to say but if the world changes you have to adapt. Advertise the benefits of a "real" bike over a bikeshare bike. Buy advertising around the bike share stations. (would be cool to see the city offer discounts on these spaces to local bike shops).

E-Bikes are already impacting normal bike sales in many areas of the country. Shops adapt by offering ebikes and ebike services.

Society would be screwed if we outlawed everything new that impacted an existing business.

[fiamme red]

It may be harsh to say but if the world changes you have to adapt. Advertise the benefits of a "real" bike over a bikeshare bike. Buy advertising around the bike share stations. (would be cool to see the city offer discounts on these spaces to local bike shops).

E-Bikes are already impacting normal bike sales in many areas of the country. Shops adapt by offering ebikes and ebike services.

Society would be screwed if we outlawed everything new that impacted an existing business.But bike share and bike shops are not on a level playing field. Citi Bike was failing until the DOT made a deal with the biggest luxury real estate developer in the city, Related Companies, to acquire bike share. If there are losses of a few million dollars a year (Citi Bike has never released its expenses), it's not a big deal for a company worth billions, considering the positive marketing and tax write-offs. Then there are multi-million advertising deals with Citibank and MasterCard. And the rent (amounting to several millions) that bike share was supposed to pay for street space has been forgiven by the city.

[Mr. Pink]

But bike share and bike shops are not on a level playing field. Citi Bike was failing until the DOT made a deal with the biggest luxury real estate developer in the city, Related Companies, to acquire bike share. If there are losses of a few million dollars a year (Citi Bike has never released its expenses), it's not a big deal for a company worth billions, considering the positive marketing and tax write-offs. Then there are multi-million advertising deals with Citibank and MasterCard. And the rent (amounting to several millions) that bike share was supposed to pay for street space has been forgiven by the city.When, in your life, have you found level playing fields?

Sent from my SM-G900V using Tapatalk

[rousseau]

Rentals are a GREAT resource and great for the bike community. It is a win for casual cyclists, tourists and people that would not ride normally.

It is a zero-risk, easy transportation resource without having the expense of carrying a bike and equipment, renting a car, or relying on traditional public transportaion (which, in LA, is non-existent in many areas).

It will lead to more bike lanes, more focus on the bicycle within the city infrastructure and, eventually, more people integrating cycling in their daily lives.
Once a non-cyclists rides, they will begin to understand and empathize with the advantages and needs of cyclists. That's my belief on it.

What is disheartening is the bicycle industry, once again, failing to change with the times and trends.
This happened with the advent of mass internet sales and now with rental bikes.
It's a tough, tough business for sure. But, the solution is not to stop the spread of cycling and not to complain. It's to be a part of the solution, and meet consumer demands.

The reason i'm a bit passionate about it at the moment is that I've seen mass bike rental schemes at work in other major cities around the world recently and it's fantastic. Sure there have been problems but overall, easy and cheap public transport is a key to building a cycle-centric city.

Starbucks killed a lot of coffee shops initially. But, eventually, as coffee has become di rigueur, it's given rise to a new industry of coffee shops outside of the corporate chain coffees. Now, there are many great independent coffee shops that meet needs that were unimaginable before Starbucks.
I like to think of these bikes as Starbucks.
Well said, and I agree. I instinctively find it sad when a bike shop closes down, but it sounds like an adjustment to the new realities of the market. In hindsight it was unrealistic to expect that an exponentially greater number of people were going to go out and purchase bikes during the post-millennial bike boom.

I like the analogy to Starbucks and independent cafes. The current ubiquity of specialized coffee drinks courtesy of Starbucks is a rising tide raising all boats. Surely a percentage of bike share users will be inspired to develop a greater interest in what they are riding, and will look into an individualized purchase more suited to them personally in the same way that some people eventually move on from Frappuccinos and Iced Capps to that particular blend at that particular coffee joint on the corner?

Cycling as connoisseurship. It will matter to some, but not to others.

[fiamme red]

When, in your life, have you found level playing fields?Here in NYC, Citi Bike has a monopoly on the bike share business, unlike bike shops that compete with other shops. And while rising rents are the biggest threat to bike shops, Citi Bike pays no rent at all for its use of city streets.

This is not like Starbucks putting small coffee shops out of business. It's like the government giving out free coffee and putting coffee shops out of business.

[Mikej]

Bike share programs are heavily subsidized through grants, loans and attractive / favorable rules. I know a guy who runs a bike share, he's got like 3+ million wrapped up in it.

[Mr. Pink]

Here in NYC, Citi Bike has a monopoly on the bike share business, unlike bike shops that compete with other shops. And while rising rents are the biggest threat to bike shops, Citi Bike pays no rent at all for its use of city streets.

This is not like Starbucks putting small coffee shops out of business. It's like the government giving out free coffee and putting coffee shops out of business.That's silly. First, this is not a high profit business. Remember that Citibike I went bankrupt. Be happy the city itself is not bleeding money at this game. But, nobody is getting rich at it.
Second, you talk about public land and facilities as though they are assets to be used as revenue. Does NYC charge the MTA for bus stops? This is a public/private partnership that expands low cost transportation alternatives in the city. And it's being done in a very efficient manner.

But, I'll keep it simpler. MORE BIKES! What's wrong with that?

Hell, just to use one example, the city gave the Yankees zillions in breaks for the new stadium. And yet, it still costs a few good paychecks to sit low between first and home. Now that, sir, is unfair. Cheap bikes? Bring them on.

I haven't been in a NYC bike shop in some time, but, I remember them hawking expensive roadie stuff for the Central Park lappers and other too trendy bikes that would just be stolen and or stripped in a month. Here in Verona they sell real bikes for real people at the two shops I've been in. Maybe that's the problem.

Sent from my SM-G900V using Tapatalk

[vqdriver]

my impression is that a lot of the people i see on bikeshare bikes wouldn't be on bikes otherwise. it's not like they're choosing a rental vs their own bikes. it's more like bike or walk/bus. it's for shorter distances in congested areas where driving/parking isn't feasible or desired. for that i'd probably use a bikeshare instead of my own as well. those who actually commute by bike are still doing so on their own rides.
being sponsored by the city has its perks as well. such as a concerted effort to make those bikeshares actually usable by adding highly visible bike lanes. the more people who actually use a bike as transportation, the more accustomed people will be to driving alongside them.

at least that's what i'm seeing here in LA.

[fiamme red]

That's silly. First, this is not a high profit business. Remember that Citibike I went bankrupt. Be happy the city itself is not bleeding money at this game. But, nobody is getting rich at it.
Second, you talk about public land and facilities as though they are assets to be used as revenue. Does NYC charge the MTA for bus stops? This is a public/private partnership that expands low cost transportation alternatives in the city. And it's being done in a very efficient manner.

But, I'll keep it simpler. MORE BIKES! What's wrong with that?

Hell, just to use one example, the city gave the Yankees zillions in breaks for the new stadium. And yet, it still costs a few good paychecks to sit low between first and home. Now that, sir, is unfair. Cheap bikes? Bring them on.

I haven't been in a NYC bike shop in some time, but, I remember them hawking expensive roadie stuff for the Central Park lappers and other too trendy bikes that would just be stolen and or stripped in a month. Here in Verona they sell real bikes for real people at the two shops I've been in. Maybe that's the problem.Citi Bike is far from efficient. The stations are emptied out in my neighborhood by 7 a.m., and stay empty until the evening. The rebalancing act is not working.

If you use Citi Bike regularly and don't own a bike shop, it's a great thing (despite the rebalancing problems). An annual membership costs little more than a monthly Metrocard.

The shops that have suffered most are not those that sell and service high-end racing bikes (e.g., Conrad's). It's the shops that sell commuter bikes (like my shop, Bike Works, which closed after 18 years in the same location). Even Charlie McCorkell of Bicycle Habitat, once of the most vocal supporters of Citi Bike, admitted that it hurt his business a lot, according to a Bloomberg article a few years ago.

http://www.beezodogsplace.com/2014/07/06/the-collateral-damage-of-nycs-bike-share-program-bike-shops/

“After Citi Bike began, over a period of two weeks you could see the change” as the SoHo location adjacent to rows of rent-a-bikes took a hit, McCorkell says. When the year ended, the Brooklyn store’s revenue was up 8 percent, while the SoHo store was “250 to 350 bike sales short.”

This isn’t how it was supposed to happen. Casual riders and tourists embracing the program were to push bike lanes into every corner of the five boroughs. Your neighborhood bike store — staffed with sinewy 20-somethings bickering over component specs — was to flourish as the city became more bike-friendly. At least that’s the lift-all-boats scenario many shop owners had hoped for...

But the perverse byproduct of Citi Bike’s popularity is its impact on bike stores like McCorkell’s. The very institutions that should be riding the success of a newly bike-friendly city are getting doored by it instead. For the neighborhood bike shop, declining sales are an unintended consequence of a program that most people seem to love...

[Kontact]

It's a strange conversation. Most of the bike stores I am likely to walk into feature bikes that cost well over $1000. It is hard to believe those shops are being negatively impacted by bike share. I suppose there are plenty of shops still selling $300 town bikes, but they are already competing with Target, Costco and mail order to such a degree that bike share seems like just another factor in their demise.

I am not surprised that bike share in NYC would kill small shops. But most of NYC is inimitable to human life.

[Mr. Pink]

I am not surprised that bike share in NYC would kill small shops. But most of NYC is inimitable to human life.

Haha, word. Well, human life that doesn't have assets in the 5million plus category.

[HenryA]

A LBS has nothing to sell but service.

If the Bike Share program doesn’t hire them, they make no profit from the Bike Share. On the other hand, the people who use the sharing service may not have ever been the shop’s customer. It’s kinda hard to say for sure, but when someone’s giving it away for free it’s gonna hurt the ones who were selling it.

In the bigger scheme of things, and to stay in business, the LBS will have to start depending on a different customer base than the lowest common denominator bike share customer.

The only benefit I can see for the LBS is a small number of people who get interested in bikes for a reason other than for convenient and cheap transportation. But when the milk is given away for free there is not much reason to buy a cow.

So yes, the customer ultimately is someone who actually cares about bikes as something more than a basic transportation device that they can use for free.

[Kontact]

Who has free bike share service? It is $1 a ride here in Seattle.

[pasadena]

my impression is that a lot of the people i see on bikeshare bikes wouldn't be on bikes otherwise. it's not like they're choosing a rental vs their own bikes. it's more like bike or walk/bus. it's for shorter distances in congested areas where driving/parking isn't feasible or desired. for that i'd probably use a bikeshare instead of my own as well. those who actually commute by bike are still doing so on their own rides.
being sponsored by the city has its perks as well. such as a concerted effort to make those bikeshares actually usable by adding highly visible bike lanes. the more people who actually use a bike as transportation, the more accustomed people will be to driving alongside them.

at least that's what i'm seeing here in LA.

100%

I see that all over the world

[fiamme red]

Who has free bike share service? It is $1 a ride here in Seattle.It's not free, but once you pay your annual membership (which in NYC is about the cost of a monthly unlimited Metrocard, which allows you on buses and subways), it is free, as long as you don't exceed the 45-minute ride limit. You don't need to worry if you have a puncture, broken spoke, or if you wear out tires, chains, or brake pads. You don't need to worry about rust if you ride the bike through salted streets in the winter. You just dock the bike and, eventually, the bike share mechanics will make the repair.

[Kontact]

It's not free, but once you pay your annual membership (which in NYC is about the cost of a monthly unlimited Metrocard, which allows you on buses and subways), it is free, as long as you don't exceed the 45-minute ride limit. You don't need to worry if you have a puncture, broken spoke, or if you wear out tires, chains, or brake pads. You don't need to worry about rust if you ride the bike through salted streets in the winter. You just dock the bike and, eventually, the bike share mechanics will make the repair.

An NYC monthly unlimited Metrocard is $121.00. How is $1452 dollars a year to rent a bike "free"?

Most of the bikes I ride didn't cost that much once, let alone yearly.

[fiamme red]

An NYC monthly unlimited Metrocard is $121.00. How is $1452 dollars a year to rent a bike "free"?

Most of the bikes I ride didn't cost that much once, let alone yearly.I was slightly off in the comparison. Citi Bike is $163 a year, $42 more than a monthly Metrocard.

Consider that in my apartment building, a parking space in the bike room costs $15 a month, or $180 a year.

[Kontact]

I was slightly off in the comparison. Citi Bike is $163 a year, $42 more than a monthly Metrocard.

Consider that in my apartment building, a parking space in the bike room costs $15 a month, or $180 a year.

Ah, got you. I thought you were comparing monthly to monthly.

$163 a year is a better deal than $1 a ride if you used the service twice a weekday - $500 a year.

[rccardr]

All I can say is, I used to sell about two dozen really nice refurbished vintage bikes a year to people who live in DC. After BikeShare got established, customers vanished. I cannot connect the drastic change- which literally happened over night- to any other event.

I didn't do this to make money- heck, I'm comfortably retired -in fact probably lost $50-100 on each bike I sold. So, mostly, I just miss being able to put together really nice vintage bikes and sell them to an appreciative audience.

I understand the consumer viewpoint: why deal with the hassle of owning and maintaining a bike in the city when you can stroll down to the corner and pick up a two wheeler that will get you where you want to go, then drop it off without worrying about theft, etc. Makes sense to me. i

But I do miss building all of those neat bikes.