The Impact of COVID-19 on Bikeshare Operators [Part-2]
The COVID-19 crisis is causing serious disruptions to multiple industries. Over 2.5 billion people were required to stay at home across the world to reduce the proliferation of the virus, many of which are now returning to a ‘new normal’ of daily living.
With people now looking to travel in a socially distanced, safe manner, bikeshare is a very attractive option. Bikeshare operators have seen significant impacts to their ridership, operations, finances and public policies which they must adapt to in order to provide the best possible service to their users.
Therefore, the question is: What is the ‘new normal’ for bikeshare operators?
With vehicle traffic suppressed, people focused on social distancing and cleanliness of their transportation options cycling (and walking) is the main pandemic-resilient mobility option available.
“The bicycle has already proved to be crisis resilient.”
Rising demand for private bikes have resulted in them being refered to as the ‘new toilet paper’, with sales booming and waiting lists as long as Xiamen, China elevated cycle path (its 7.6km long!).
However, although the private bicycle is booming what are the longer-term impacts on bikeshare specifically?
To find out, we surveyed over 50 bikeshare operators who operate a range of system sizes, operating and financial models around the world. Today, we’re sharing our observations on the potential long-term impacts of COVID-19 on bikesharing operators.
As cities begin to phase out of lockdown into the ‘new normal’, bikeshare systems, as with all urban mobility systems, are having to react and re-adjust to the various requirements.
Changes have been and will likely continue to be extensive, from changes in operational requirements due to users mobility selection criteria focusing primarily on maintaining physical distance and vehicle cleanliness, to newly introduced cycling infrastructure.
This is clear from the feedback received from the survey response, which provided clear, common themes of the potential long-term impacts of the COVID-19 pandemic, all of which are interrelated in nature.
These were Operations, Ridership, Financial and Policy/Legislation, which we delve into more detail below:
Ridership: Increased Demand, Usage and Changing Patterns
Since lockdown has begun to ease, there has been a steep increase all over the world. From the epicentre of the virus in China, where there has been over a 150% increase in bikeshare usage to Paris’ record breaking 191,000 rides in a single day, shared bike demand has exploded across the world.
With over 95% of our survey respondents insisting that the primary long-term effect of COVID-19 on bikeshare would be increased ridership these numbers definitely provide evidence of this.
Bikeshare systems are an integral part of public transport systems, but with clear value differentiators such as economical, healthy, social distanced alternative to traditional modes. To many within the industry and likely users, this increase is of little to no surprise.
These changes will not only create an increase in usage but also a potentially drastic change in usage patterns.
User priorities and usage patterns are changing , due in-part to city policy, free-pass offerings, less congested roads or new infrastructure changes. Users are now using bikeshare systems for longer, for different types of trips and more often.
However, the real questions is will these postive changes remain? Respondents and history tell us that they will.
When assessing other events that have impacted traditional usage patterns such as the 2005 New York City transit-worker strike or recent public-transit strikes in Paris bike ridership remained at significantly above pre-crisis levels- which is positive reading for bikeshare operators, users and cycling advocates alike.
Operations: Increased Requirement, Model Changes & Optimisation for Efficiency
While the face of bikeshare systems will likely look the same, operations will undoubtably look very different after the pandemic as we enter the ‘new normal’.
As mentioned previously, user behaviour has changed significantly with riders pain points now shifting from reliability to reduced risk of infection meaning rider anxiety is a factor that must be responded to by improved cleaning protocol.
Providing rebalancing, maintenance and charging services when ridership has increased, combined with increased requirement for cleaning & disinfecting of bikes, stations and other equipment places a further strain on operators.
This means, as the world recovers and enters the ‘new normal’, bikeshare operators are having to optimise their operations (at times with reduced staff) and improve efficiencies across a reduced work-force in many cases.
Aligning these new operational models and on-boarding new processes and teams, there is a concern of reduced productivity in the long-term as less resource must have to complete more tasks. Although this is almost a pre-requisite of being a bikeshare operator, combined with evident likelihood of increased demand, this could leave operators struggling to provide the best service to their users.
Financial: Sponsorship, Budgets & Business Model Changes
Bikeshare operators, like many businesses, have been impacted financially during the COVID-19 crisis. Initially due to system closures, government legislation or a general decrease in ridership.
The longer term impacts however have impacted different business models in different ways.
As mentioned in Part-1, systems that are not tied to a PPP (Public-Private Partnership) agreements have paid a higher price as other revenue systems are impacted.
Sponsorship is the lifeblood of many bikeshare system, especially non-profits. With sponsors and local partners becoming more difficult to come by this raises some concerns for these systems.
For others, the relationships they have developed with their local partners have been critical to ensure the prolonged availability of bikeshare in their respective cities, perhaps proving that the city first mantra is one of sustainability.
These financial impacts have led some operators to assess and implement new business model opportunities to increase revenue whilst waiting for ridership recovery. Two primary business model changes have been:
- Long Term Leasing
- Delivery Driver Partnerships
Even with these strategic shifts in business models, the long-term consensus is that increased ridership revenues, funding and legislation will not only allow financial and operational recovery but potentially system expansion opportunities.
Cities — Policy & Legislation: Expansions, New Systems & Infrastructure
Even in light of the current situation, bikeshare remains in the driving seat (or saddle) in cities across the world.
Numerous system expansions have been announced, whilst Request for Proposals (RFP) such as for a new public bike scheme in Manchester, UK, are at an all time high showing that cities appetite for a reliable, sustainable transport mode.
However, adding more bikes is only part of the battle, due to peoples willingness to cycle being closely correlated to how safe they feel. A well-known fact and why bike lanes and other improved cycling infrastructure are critical to the long-term sucess of bikeshare systems and cycling as a whole.
Cities around the world have taken this into consideration, combined with the opportunity of car-less streets during the pandemic to do just that. Major cities including Berlin, Barcelona & Milan have already taken steps to improve bike infrastructure to allow more people to keep cycling at a safe distance whilst also implemented bike focused policies and legislation.
Combined decline of fossil-fuelled car traffic during coronavirus lockdowns has already given many city residents their first glimpse of clear skies in years. Hence why, campaigners across the world are eager to make these changes a long-term feature of post-lockdown life.
Evidently, as the pandemic continues, the provisions of these forward-looking governments are creating a better, safer cycling culture that is critical not only during the health pandemic, but for the long term health of their citizens and our planet.
What Comes Next? Keep Moving Forward…
The coronavirus pandemic has reshaped entire industries, business models and people’s personal lives across every corner of the world. In the longer-term, some of our behavioural changes may revert to what they were prior to the crisis. However, given the current situation, observations and feedback from the bikeshare industry it is also a chance to evaluate.
As people seek to maintain social distance, focus on cleanliness and are cycling more than ever, one might wonder,
“Is this the beginning of the next (sustained) bikeshare boom”
The recovery from COVID-19 cannot and will not be a return to business as usual for bikeshare operators or bikeshare in general, that much is already apparent.
However, it must be used as a opportunity to push the advancement of what is possible.
For bikeshare operators, this means improved, efficient and sustainable operations to ensure the longer term availability of the fantastic transport modes that is bikeshare.
Policy makers must also continue moving forward. Cities must continue to invest in bikeshare, proper incentives and key infrastructure adjustments to grant cyclists and pedestrians more space, and support the development of bike share services.
Ultimately, in the face of the COVID-19 pandemic, the bike is emerging as the top transportation choice around the world. Operators must be aware and act accordingly to the long-term impacts and cities must transform to accommodate the cycling boom.
We are reaching the pinnacle of the proverbial hill and must keep pedalling to take bikeshare up, over and into the golden age of bikeshare.
#KeepMovingForward
My personal thanks to each of the bikesharing operators for their valuable contributions to this article
This article follows on from The Impact of COVID-19 on Bikeshare Operators [Part-1] which assessed the initial impacts of the pandemic on bikeshare operations.
