PBS Strategy & Outcomes 11 December 2017

PUBLIC BICYCLE SHARING

Strategy & Outcomes

When was having too many cycles in the city ever a problem?
Photograph from H.C. Anderson Blvd, Kobenhaven, Denmark
pic: Sonal Kulkarni

Preface The primary goal

should be to achieve a
This document tries to address questions around Bicycle Sharing positive modal share
Systems for cities and towns. It is an effort to bring together various shift towards bicycling
stakeholder views towards evolving strategies and analysing the outcome from private transport
vehicles
of each decision.

The document is written on behalf of citizens who are consumers of this

system. It tries to bring the combined experience of citizens organisations
like CiFoS & Praja RAAG who have put in years of work in increasing
cycling mode share in cities.

UrbanMorph also reached out to potential private operators who

expressed interest in running cycle sharing systems in the city of

© UrbanMorph, all rights reserved 1

PBS Strategy & Outcomes 11 December 2017

Bengaluru for their perspectives.

The document will be released to the public and the press along with the govt and private
stakeholders who will be involved in the system. The document only serves as a guide and
tables the issues. The final outcome will be decided by the government and the procedures
adopted by them

What is a Public Bicycle Sharing System?

A Public Bicycle Sharing System (PBS) is a service where bicycles are made available for shared
use to individuals on a very short term basis for a price.

It should allow people to borrow a bike from point A and return it at point B.

What is the objective its trying to achieve?

The purpose of a Public Bicycle Sharing System are multifold. One is from a health and personal
well being perspective, it helps the individual get healthy and not pollute the environment. The
second is from a transportation perspective, it helps decongest the road space and act as a last
mile for public transportation.

The role of PBS in achieving a modal shift to public transportation is more valuable than
making complete trips.

QUESTION TO OPERATORS PEDL - We seek to provide a convenient, affordable, and accessible

mobility solution to the broader urban population. Our first of its kind
What are your tech-enabled cycle sharing service provides an ideal first and last mile

objectives of mobility solution.  We see customers of all ages using the service. 
Everyone from teenagers to senior citizens enjoy PEDL.
running a PBS in Mobike - Increase adoption of bicycle rides - Be #2 or #3 in modal
share (in terms of no. of rides), Mass adoptions - From all walks of life.
a city in India and No deliberate segmentation for adoption. (by design, we are not ready
what kind of for para transit - for people with disabilities)
Ofo -We wish to bridge the last mile gap with our bicycles,
customers will be complementing public transport - to help reduce traffic congestion,

using your bikes? and to reduce carbon emissions from motorised vehicles. While
commuters are our key focus, our bicycles are used for a variety of
uses, including tourism and leisure.

Who should be the target audience that this system should

serve?
From a socio economic perspective the people congesting the road space are people who can
afford to buy a car or two wheeler. The ones who use public transport are already converted to
sustainable mobility. The more people we get off the motorised private transport and into bikes
and public transport the better the impact will be on decongestion. This will mean the service
has to be attractive to the upwardly mobile car user. On the other hand if you are not completing
the entire trip on the bike, last mile is a service even public transport user needs.

This means it needs to serve all sections of society and not just the car user.

© UrbanMorph, all rights reserved 2

PBS Strategy & Outcomes 11 December 2017

Why scale?
There is a need to scale now as both the
economy and purchasing power are
exploding. This is causing congestion at an
alarming scale. The built form is also
rapidly accommodating a car based travel
instead of a cycling & walk based form.
The environment is also degrading rapidly
with quickly deteriorating air quality. It is
imperative to shift the mode share towards
more sustainable modes as soon as
possible.

So scaling quickly will allow time for

habits to change, infrastructure to
follow and mode shift to tip

How to scale? Ubiquitous availability

needs to be prioritised
Over the last few years the 4G model of dockless bike sharing has over dedicated lanes.
reduced the entry barrier for private players. The 3G model of docking Demand catalyses the
infrastructure far more
stations was very expensive capex and did not scale very quickly. It has
effectively.
scaled exponentially since in countries like china. Other countries have
treaded more carefully. But PBS systems are now in almost 500 cities
worldwide, with cities like Shanghai having more than 3L bikes.

It has thus become imperative to use this capacity the private

players bring to bear in shifting the modal share.

Which model is appropriate for the city?

There are 2 extreme implementation models. One is an MoU with
operators without any operating conditions, on the other end is a tender
for a single operator. While most cities operate on the standard principle
of tendering out the system to an operator it has certain risks.

The tendering model while it brings in control to the managing authority,

discourages other operators reducing choice. On the other hand
allowing multiple operators will reduce the ability to control but allows a
free market mechanism. While the latter option brings in excitement and
dynamism its not without its pitfalls. It is possible they may mis-
estimate the market or mismanage operations. But that gives the city
the ability to learn what works and doesn’t at no cost to the taxpayer,
so it can be fixed going forward.

Overall the free market model brings in more money and

entrepreneurship and innovation to help build the ecosystem.

© UrbanMorph, all rights reserved 3

PBS Strategy & Outcomes 11 December 2017

PEDL - PEDL welcomes competition.  At present, we have the largest

QUESTION TO OPERATORS
scale in Bangalore by a wide margin as we cover multiple
With lots of bike neighbourhoods. 

companies Mobike - we welcome multiple operators to drive adoption as there's

enough to be done and it allows choice to customers and they can
operating in the distinguish good from bad. concern with multi operators is
irresponsible competitiveness - dumping too many, poor quality bikes
city. Comment on creating a civic problem - occupying too much space and broken bikes
the multiple left back on the roads. Also, customer ends up paying security
deposits with not one but multiple operators
operator scenario. Ofo - We believe that the bike-sharing sector has only just started in
India. With multiple bike share operators competing, cities and
consumers will be empowered with (i) choices (ii) higher quality of
bikes and services (iii) competitive pricing (iv) the ability to directly
ensure that poor performing bike operators will be forced to improve,
otherwise made redundant. With these, the bike share industry will
mature better, resulting in stronger cycling culture in Indian cities and
providing cities the justification for better cycling infrastructure.

Should there be exclusivity to operators in specific areas?

While this might give operators the confidence of customer acquisition it doesn’t align with the
competition that will benefit the city. It also presents logistical challenges to restrict bike
movement across zones by impinging on the ability of the commuter to ride to destinations
across operator zones. Exclusivity might work in campuses but not in the public domain. It might
lead to having to go through a tendering process to ensure transparency in selection.
Insisting on area wise exclusivity will work against the ability to compete and differentiate.
It is recommended that operators be free to select areas of operation based on their
feasibility and ability to manage operations

What are the merits and demerits of cities investing tax

money into PBS?
The merit in the city investing in the bike share is that it will be committed to the long term. There
will be social equity because the city is accountable to everyone. The pricing will be determined
in a more fair manner to benefit all sections of the society. There will be openness and
accountability for the data and the outcomes.

In a new market like PBS where we are trying to induce a demand, private players might not risk
their money where there is no existing demand while the city might commit to overlooking
immediate profits and deploy in low demand locations and look to induce a mode shift.

Who are the stakeholders in Bengaluru?

UMTA - An UMTA or an SPV so created by it should be the nodal agency and be responsible for
issuing permits monitor deployment and on going regulation of the service. If needed the nodal
agency may tender and run a PBS at a future date.

© UrbanMorph, all rights reserved 4

PBS Strategy & Outcomes 11 December 2017

Municipal Corporation - The city corporation or development authority should provision spaces
in parking areas, sidewalks, CA sites or other locations identified by the nodal agency towards
bike parking.

Mass transport authorities - Mass transport organisations like the metro, bus and railway
authorities should provision space for bike docking stations within its stations and make them
available for bikes.

Traffic Police - The enforcement authority will allow for parking of bicycles in the street parking
areas identified by itself or the city corporation. Bikes left behind in unauthorised space need to
be towed away like motor vehicles and the operator responsible for getting it released. An MoU
is required with traffic police and the nodal agency to enable this.

Who should be the nodal agency?

Currently each individual entity like the city corporation, Metro or Bus services are putting out
tenders each in their own model. There needs to be a single agency coordinating the permits
and space allocation. The agency will also be responsible for studying impact and negotiating
the scaling of deployment.
An UMTA is the most appropriate organisation to be the nodal agency or an SPV set up
under the UMTA can manage this

How much control with the city?

While the operators want complete freedom there is a need to evolve certain operating
standards. Regulations need to evolve with time to ensure availability & service levels. It is very
important to address the shortcomings of the dockless model. Dockless bikes obstructing traffic
and pedestrian movement will bring a bad reputation and all parties need to evolve a consensus
to address this problem. With the police constantly short staffed, the last thing biking in a city
needs is a spoiled reputation.

A permit system with clear guidelines on service levels and outcomes will give the right
amount of control

PEDL - It would be very helpful if the city could support cycle sharing
QUESTION TO OPERATORS
operators with a clear parking policy which will allow parking on the
What regulations road or footpath in certain demarcated areas.  This is the common

would you like to practice across Europe, the US, and China.  
Mobike - Stringent rules of bike quality, recovery of damaged bikes,
see from the rules for parking norms and with time window for clearance, penalties
beyond that, allow operators to instill discipline among users through
government? incentives and penalties and addressing long term riding behaviours
Ofo - We will like to see fair regulations on bicycling so as to keep our
bicycles and riders safe in the city and get them fair share of the road
and time at signals.

© UrbanMorph, all rights reserved 5

PBS Strategy & Outcomes 11 December 2017

What are the key parameters the city should be worried

about?
One of the primary drivers in making any transport system successful is available when needed
and working properly when available. Availability depends on the demand supply balancing
which the operator will be very concerned about in a competitive market place. Users will vote
with their feet and choose other modes if the vehicles are not available or not working. Should
the city enforce SLA on the providers. The answer would be yes, but the SLA would evolve over
time.

The city should make it a condition that the operators provide data on broken bikes and
make available a neutral complaint portal that can take user complaints on the system.

Mobike
QUESTION TO OPERATORS
1.Commitment to make every street a cycle friendly street and this may
What would you not mean necessarily dedicated cycle track but more regulated parking
and segregated side lanes on the road
like to see from 2.Permit cycle parking at any legal authorised parking available for
the government? motorised vehicles
3.For Bangalore - All administrative stakeholders must be onboard -
DULT, BBMP,BMRCL, Traffic Police, BDA and not drive siloed
independent initiatives without a shared vision and commitment
4.Master Plan must include cycling infrastructure and amenities right
from cycling lanes. signages, traffic signals also some areas designated
as Cycle Only areas
5.A way to limit the number of bicycles on road but not any time soon.
the limit must be big enough to drive adoption and contain the menace
at the same time (e.g for Bangalore the limit must not be less than 5
Lacs initially)
PEDL - Over and above the parking regulations mentioned above, it
would be quite helpful if the government continued to focus on building
out cycle track infrastructure to ensure a more rapid adoption of
cycling. This will help reduce the city's carbon footprint in an even
quicker fashion.
Ofo - An enabling role.

What if the market consolidates?

Companies going bust or getting acquired clearly means either there was oversupply of bikes,
fall in demand or mismanagement. Like in the case of Bluegogo in china where the operator
couldn't fulfil financial obligations there might be closures. These need to be handled under
MoCA guidelines.
The nodal agency shouldn't have any legal obligations towards consumer other than
finding new operators or worst case stepping in with a tender model to offset demand

© UrbanMorph, all rights reserved 6

PBS Strategy & Outcomes 11 December 2017

What is appropriate pricing?

The operators don’t want any price controls and surely there will be pricing that will attract the most riders.
It should be noted that most last mile connectivity is of short duration and PBS lends itself to such a
usage.

So price fixing should be left to the operator. but if any discounts need to be given to a certain
section of society, like students or BPL card holders, then a those monies can be transferred to the
operator based on ride data submitted.

PEDL - We charge a baseline rate of Rs 10 per 30 min. At present, we're

QUESTION TO OPERATORS
running some promotional offers that allow customers to avail PEDL for as low
What is your as Rs 1 per 30 min. 
Mobike - Exact pricing will be announced at the time of launch. but the
pricing like? principle is to aspire to be the cheapest transport mode available in the
city. there could be a requirement of deposit that is under evaluation
and may evolve as the scale increases (evolve doesn’t mean increase)
Ofo - Our pricing will be competitive and with the aim to enhance
ridership.

What if they fail to meet the demand?

With operators being in existence if the supply isn’t matching demand the government can step in to find
the reasons. Its either because of over pricing or inadequate supplies.

So the city should be willing to step in and run a PBS system of some reasonable scale to preserve
the market till it tips back

Who owns data?

The data generated by the system will primarily be the owned by the operator. But the data from
across the operators need to be provided to the nodal agency to help with planning.

Ridership data, routes taken data, complaints, availability and broken bikes data, pricing
information, should be mandatorily provided to the city under the rules of the permit.

Who decides where to operate?

While the operators would like to operate where the potential is high so they can recover their
investment, it is important for the city to have the demand induced in other areas as well. It can
be a phased approach to roll out in all areas but coverage completely within the BBMP areas as
a first step and extending into the BDA regions is a must. So if the private operator refuses to
venture into low traffic areas what should be the solution?

The operator should be allowed to determine where to operate. But the mechanism for
serving the other areas must be evolved on the basis of incentives and penalties

© UrbanMorph, all rights reserved 7

PBS Strategy & Outcomes 11 December 2017

Mobike - we believe in city wide availability of bikes and services to

QUESTION TO OPERATORS
drive the necessary scale in line with our objectives. We may initiate our
What is your launch in few pockets and then eventually and rapidly scale to offer to

commitment to large part of the city (almost the entire city)

PEDL exists to offer robust cycle sharing options for the entire city and
operating not just certain limited pockets.  This will also provide the maximum
value for the customer since she can avail a PEDL regardless of where
citywide vs only she is in the city.
certain pockets? Ofo - We do operate city wide, globally. However, we customise our
approach for each market, and will take incremental steps to ensure a
responsible and successful deployment of our services.

How will physical spaces be provisioned to the operator?

Public parking spaces will be identified by the operator and they will apply for permission to
park. The nodal agency will collate all the requirements and get the approval after consulting
with the other agencies. Some of the parking spaces like inside the metro station will involve
charges, in this case the operator has the option to pay and acquire the space or choose a
different location.
In the dockless model, bikes can be left anywhere. Right now the no parking does not apply to
bikes. Hence the determination of what is inappropriate parking will be determined by how the
bikes are obstructing either traffic or pedestrian movement.

A nominal cost for the space allocated needs to be calculated, based on the guidance value in
the area, by the nodal agency and denoted as contribution to the project.
The nodal agency should be responsible for coordinating the allocation of the space and
provisioning the same to operators as inventory.

PEDL - Initially, there is a focus on pockets that have strong mixed

QUESTION TO OPERATORS
use developments like HSR, Koramangala, Indiranagar, etc.  It's
What will be the helpful for neighbourhoods to have a strong residential and

basis for you to commercial element since that will help maximise initial usage. 
Ultimately, this helps improve the service.  
select certain Mobike - 1. access to mass transit routes. 2. terrain/gradient. 3.
access to universities/campus - including corporates. 4. availability
regions to operate? of cycle-safe streets, parking and other favourable conditions
(levelled ground, right of way, street lighting, less deserted)
Ofo - We will aim for maximum impact by serving the regions with
highest need of our solution

PEDL - There's a possibility that other smaller players might begin QUESTION TO OPERATORS
operating in this area.  By mid 2018, we will have coverage across
the entire city with each neighbourhood containing thousands of
What do you
PEDL cycles. expect to happen
Mobike - Infrastructure improvement from city authorities to make
it cycle friendly. user incentives may operate differently / at in areas where
different grade in these areas initially but there shall be attempts to you do not serve?
include these areas in the network

© UrbanMorph, all rights reserved 8

PBS Strategy & Outcomes 11 December 2017

How do we apply PBS to different cities?

A Tier 2 or Tier 3 city has different travel patterns by nature of their size. Primarily because of their smaller
size people are able to complete trips on a single mode. They also do not have a widespread public
transport system of note. Private transport fills this gap. Some of their full miles are lesser than some of
the last miles in the city.

© UrbanMorph, all rights reserved 9

PBS Strategy & Outcomes 11 December 2017

Credits
Special thanks to the below for providing their inputs in preparing the document.

• Sujit Nair, Chief Business Officer, Mobike India

• Greg Moran, Co-Founder & CEO, PEDL by Zoomcar

• Dexter Sim, Expansion Manager, Ofo APAC

Note: Ofo has reportedly closed operations since the time this data was being compiled and have
transferred their assets to Metro Bikes/Bounce.

UrbanMorph is a consulting & design collaborative, working with CiFoS, which provides strategic & tactical solutions to
urban spaces and organisations in the urban space. It provides solutions in the domains of Mobility, Environment, Safety,
Education & Health

© UrbanMorph, all rights reserved 10