New venture plan for 501(c)3 bike share operator for the Triangle, NC. Written for North Carolina State University MIE 413 and NCSU Lulu eGames 2012. TBS branding and design by http://mattyow.com

1. !
n e w v e n t u r e c o n c e p t
The Triangle, NC’s premier bike share
operator and authority. We design, equip,
install and operate world-class bike share
systems.
Prepared by
Josh Bielick
954-552-4965
jBielick@gmail.com
TriangleBikeShare.com
© 2012 Josh Bielick
April 9, 2012

2. TRIANGLE BIKE SHARE
THE ORGANIZATION
OUR MISSION
OUR VISION

3. TRIANGLE BIKE SHARE
CONTENTS
executive summary. ............................................................................................................................................................4
company description..........................................................................................................................................................6
background.................................................................................................................................................................... 6
mission........................................................................................................................................................................... 6
current state................................................................................................................................................................... 7
industry analysis ................................................................................................................................................................. 7
revenue .......................................................................................................................................................................... 7
Figure 1 - Public Transportation Industry Revenue Trend ..............................................................................................8
Figure 2 — Industry Revenues........................................................................................................................................... 8
participants.................................................................................................................................................................... 9
life cycle ......................................................................................................................................................................... 9
concentration ................................................................................................................................................................9
Figure 3 – Growth in Federal Funding for Transportation...............................................................................................9
key success factors .........................................................................................................................................................9
industry trends ............................................................................................................................................................10
Figure 4 - US Urban Population Growth .........................................................................................................................10
market analysis .................................................................................................................................................................11
geographic target markets — primary factors............................................................................................................11
Figure 5 - Population Density Comparison.....................................................................................................................11
geographic target markets — secondary factors ........................................................................................................12
Figure 6 - Cycling Commuter Rates.................................................................................................................................13
Figure 7 — Cycling Rates by Block Group in Raleigh.....................................................................................................13
geographic market competition..................................................................................................................................14
end-user target market ................................................................................................................................................14
Table 1 — Target Market Characteristics .......................................................................................................................15
motivation ...................................................................................................................................................................15
marketing plan..................................................................................................................................................................16
initiatives and organizations .......................................................................................................................................16
special events ...............................................................................................................................................................16
partnerships.................................................................................................................................................................16
sales and distribution ..................................................................................................................................................17
management team and company structure......................................................................................................................17
operations plan.................................................................................................................................................................18
equipment supplier .....................................................................................................................................................18
operational models......................................................................................................................................................19
Figure 8 — Bike Share Operational Schemes..................................................................................................................19
product description..........................................................................................................................................................19
what is bike sharing?....................................................................................................................................................19
Figure 9 — Bike Sharing: Visually explained ..................................................................................................................20
service ..........................................................................................................................................................................20
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4. TRIANGLE BIKE SHARE
Table 2 — Memberships and Sales Volume ....................................................................................................................21
financial projections.........................................................................................................................................................21
start-up costs................................................................................................................................................................21
Table 3 — Startup costs for Raleigh System....................................................................................................................22
operational costs .........................................................................................................................................................22
revenue sources ...........................................................................................................................................................22
appendix ...........................................................................................................................................................................24
sources ..............................................................................................................................................................................25
3

5. TRIANGLE BIKE SHARE
EXECUTIVE SUMMARY.
Description
Triangle Bike Share is a next-generation bike share system operator. We will consult, assess, design, seek
funding, implement and finally operate public bike share systems. These systems install stations
spanning the targeted service area and offers an autonomous, environmentally conscious, and affordable
transportation option at the utmost convenience to its users. Our product is an affordable commuting
and recreational transportation alternative with the customers’ needs in mind.
Market
The city of Raleigh, North Carolina has seen population growth of almost 50% in the last decade. 8This
growth has been almost matched by neighboring cities in the Triangle and the population density
increase paired with favorable cycling conditions and supportive cycling communities makes it an ideal
location for a public bike share system. The transportation infrastructure in these cities is overburdened.
Additionally, neighbor cities, Chapel Hill and Carrboro, have a cycling commuter rate much higher than
the national average (5.2% and 2.4%, respectively).1 These cycling commuter rates rival that of
Washington, D.C. (6.52%)13, which is home to the nation’s first bike share operation and indicate a
demand for the service. Much like Raleigh, these NC cities lack a unified, affordable, flexible public
transportation system design for urban mobility that meets the needs of its downtown-living and
commuter habitants. Adoption of public transit has also risen in the triangle; Capital Area Transit bus
boarding and alighting has grown 24% since 2008.9
Triangle Bike Share has focused its research and market penetration on Raleigh, NC as an initial market
and location to set up operations because of its fast growth, favorable demographics and proximity to
other secondary markets.
Target
The end-user target market is comprised mostly of professionals in the age group 25-64 whom are
downtown dwellers and urban commuters, hold a bachelor degree or higher, earn above median income,
and own or have access to a vehicle. Worldwide, subscribers of this system seem to match similar
demographics to most public transportation services, but in US models subscribers tend to be more
educated and have at or above median income. These systems provide short-trip urban mobility and are
of value to those living in downtown and dense, urban quarters.
Industry
Triangle Bike Share is a player in the public transportation industry—a $38.1 billion industry expected
to grow at an average of 2.3% for the next five years.6 It falls into the smallest category within this
industry—Other urban transportation.
Bike share systems and operators are fairly new the in the US. The first 3rd-generation system (smart
card swiping) in the world was implemented in 1996 at an English University.2 However, the most
recent system comparable to those of today was implemented in 2005. Bike share systems are a very new
subsector of the public transportation industry and show a promising future.
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6. TRIANGLE BIKE SHARE
“We know that bicycles are more than a toy. Some of us believe that bicycles
are a means to reclaim our urban environments and streets for people;
others simply know that bikes are a fun way to promote exercise. Some of us
feel that bikes are a simple action that can collectively help address climate
change and peak oil. Some believe all of this is true. There is no better
example of true sustainability than public bike sharing - a simple solution
that simultaneously addresses environmental, economic and community
challenges.”
-Parry Burnap, Executive Director of Denver Bike Share
Operations
The majority of bike share operations in the U.S. generate revenue from membership sales and user fees,
while sponsorships and sometimes ad revenues contribute sizable portions of operating revenue.
Memberships are sold from automated station kiosks or from the system’s website. Current pricing
models seem to meet the expectations of customers, but should be assessed on a case-by-case basis and
innovated.
Triangle Bike Share will consult with municipalities looking to assess a market’s feasibility, develop plans
for implementation and phasing, assist in seeking grants or private funding for the system, facilitate the
vendor order and installation of equipment and finally operate the bike share system.
Triangle Bike Share will operate as an NC corporation, contracting services to local transit and
municipal authorities. The system upfront costs will rely heavily on transportation subsidies and/or
grants and private donations. Memberships, usage fees and sponsorships will generate the revenue to
recover operating costs and the system is expected to break even in year three. Ownership of the system
will belong to the city or municipality for which it is installed.
Transportation and infrastructure development is on the front burner of city and downtown
development and the triangle, NC and abroad. This type of environmentally friendly, healthy,
convenient and long-term solution will be the perfect augmentation to the city and county public
transportation systems here in Raleigh and abroad. It’s an innovative approach to urban mobility and its
benefits are yielded almost immediately. Bike share systems are growing fast; the Triangle will be the
next region to see these systems implemented and Triangle Bike Share will be their operator.
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7. TRIANGLE BIKE SHARE
COMPANY DESCRIPTION
Triangle Bike Share will be the first North Carolina-based, next-generation bike share operator. TBS will
establish operations and a base office out of Raleigh, North Carolina—the location of the first proposed
bike share system and market penetration—and establish systems in several other targeted North
Carolina markets. As a bike share system operator, TBS will seek the grant monies and funding to install
the system, perform thorough feasibility studies, contract with the appropriate equipment vendor and
finally administrate, maintain and execute all on-the-ground tasks and day-to-day functions of the
system. TBS will form a partnership with local municipalities to form a hybrid owner/operator business
model in which the city or transit authority owns the system itself, and TBS is contracted to operate it.
Bike share systems are emerging at a growing rate in US markets and worldwide, but are only served by
3 major operators. TBS will pioneer bike share operations and installations in the relatively untouched
market of the southeast US. As of the submission of this plan, Charlotte, NC is the only market in North
Carolina to begin a 3rd-generation bike share pilot program and feasibility study.3 Interest has been state
in other NC markets by an international bike share operator, but no feasibility study or request for
proposal has been made for the Triangle, NC. Bike share has been a topic of discussion in the triangle,
NC in the last two years, but has lacked a properly funded, strategic, actionable plan and feasibility study
to materialize.
background
This bike share operator concept is the product of a senior (soon graduate) of North Carolina State
University’s Poole College of Management’s entrepreneurship program named Josh Bielick. Bielick, age
25, is originally from Pompano Beach, FL, where he spent his adolescence using a bicycle for daily
transportation. Geographic characteristics and a high population density made commuting by bicycle
easy, convenient and economically rewarding. After moving to Raleigh, North Carolina and attending
NCSU for undergraduate studies, Bielick continued to use his bicycle for daily transportation and saw
that a significant number of other people did the same. Further research and analysis of the area yielded
some very striking characteristics and after hearing about the success of this European concept
manifesting in Miami Beach, FL, Bielick began compiling data and starting a feasibility study for the area.
Since the beginnings of this research in June of 2010, Bielick has been consulting with bike share and
transportation experts, engaging in the local cycling community events, seeking the ideal urban planner
and technical expertise to augment the team while keeping a finger on the pulse of bike share worldwide.
Josh can be reached via phone at 954-552-4965 or by email: jBielick@gmail.com.
mission
Triangle Bike Share will become the premier, first-choice operator and industry experts for bike share
systems in North Carolina and eventually—the Southeast. It will poise itself to become the premier
next-gen bike share operator in North Carolina and quickly establish efficiencies and the expertise to
dominate the southeast market.
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8. TRIANGLE BIKE SHARE
Bikes have a bigger place in our cities’ futures and Triangle Bike Share will address the growing need
transportation options in the city's metropolitan areas. TBS connects residents with destinations—
offering an affordable, accessible, healthy, convenient and innovative form of mobility.
current state
Triangle bike share is in the startup phase. TBS is seeking seed funding to incorporate, begin market
research, hire the necessary personnel to augment the team, begin consultation and pitching to city
council, and complete a feasibility study for several NC markets.
As of the writing of this plan, the following milestones have been met:
• Initial market screenings
• Research and beginning of feasibility study
• Written the business plan
• Begun search for management team
The following milestones will be met in the next 6-8 months:
• Acquire startup capital
• Incorporate
• Augment team
• Begin primary data collection for feasibility study
• Begin consulting with local municipalities and propose implementation plan
• Establishing systems management infrastructure
INDUSTRY ANALYSIS
Triangle Bike Share falls in the industry classification “Other Urban Transit System” (NAICS 485119,
SIC 4111). Bike share systems are a relatively new concept to US markets and thus have not been
adequately recognized and benchmarked by national studies and transportation authorities. A bike share
operator more or less fits into the NAICS five-digit category “Public Transportation in the US” (NAICS
48511), which includes bus, commuter, heavy and light rail, cable car, and other urban transit systems.
revenue
Since revenues from public transportation operators come from operating revenue (fees, subscriptions,
advertising) and fluctuating non-operating revenue (federal, state, local grants and subsidies), income is
determined mostly from operating costs.
This $38.1 billion industry has seen growth of 0.8% from `06-11 and is projected to grow 2.3% in the
next five years. Additionally, the number of operators in this industry is also expected to grow at an
average annual rate of 2.6%.1
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9. TRIANGLE BIKE SHARE
Figure 1 - Public Transportation Industry Revenue Trend
Industry
Revenue
($Millions)
45,000
40,000
35,000
30,000
2000
2002
2004
2006
2008
2010
2012
2014
2016
2018
Industry
Revenue
($millions)
Figure 2 — Industry Revenues
Buyers of these bike share systems are mostly cities, their transit
municipalities, and large universities. The first US cities to
purchase bike share systems and contract operators were
Minneapolis, MN; Arlington, VA and Washington D.C., but as
many as 15 US cities have implemented systems and established
or contracted operators since 2009. Revenues for mid-size
operators (60 station, 600 bikes) such as Denver Bike Share in
Colorado generated revenues of $2.8 Million in its second
operating year (including capital contributions and grants) and a
net income of $1.54M4. Cost recovery rates for these systems in
initial years range from 53% (Arlington’s 18 station, 113 bike
system as of 2011) to 149% 4significantly higher than its US rail and bus counterparts.5
Figure 3 – Growth in Federal Funding for Transportation
Furthermore, some players in this industry
rely on external drivers such as government
funding for a significant share of income. While
Triangle Bike Share will apply for federal or state
grants on behalf of the system to meet upfront
equipment and installation costs, it is expected to
operate sustainably through user subscriptions, trip
fees, sponsorships and (contingent on city policy and
statutes) advertising revenue. Figure 3 – Growth in
Federal Funding for Transportation — depicts the
trend in federal funding for transportation from 2004
to 2016 (projected).
8

10. TRIANGLE BIKE SHARE
Source: IBISWORLD.COM
participants
This industry is comprised mostly of bus transit operators (59.6%) with the previously mentioned
“Other” categorization contributing the second smallest share of the industry at 1.2%6. The largest
market-share holders in this industry include New York City Transit Authority and Los Angeles County
Metropolitan Transportation Authority—holding 33.3% and 8.7% respectively.1
In a more bike-share-specific area, contenders such as Alta Bicycle Share, Inc. and B-Cycle operate the
largest share of systems in the US while BIXI of Montréal operates the largest in Canada. Other systems
are operated privately by advertising companies (Miami DecoBike) and non-profit entities created
specifically for the task. The competition at the end-user level could include other public transit options,
but the design and implementation of bike share systems have been targeted at fulfilling the short trips
niche and bridging the first and last mile gap in public transit design.
life cycle
This industry is very mature, but innovative transit systems and technologies have created new
opportunities for operators and manufacturers. As this industry grows, it is still expected to remain in its
mature state. Demand and growth in this industry will be driven from environmental and social factors
such as changes in demographics, urban population growth, concerns for environmental impact and
employment rates.
Bike share systems have only recently been widely adopted and installed. Thus, they have not been
recognized as a public transportation service in historical research. Their innovative solution to
transportation in densely populated areas and low environmental impact poises them as a fruitful and
sustainable offering in this industry.
concentration
At a global level, this industry—specifically bike share operators—is extremely fragmented. Due to the
geographic nature of its services, industry leaders typically do not operate outside of their markets.
However, the US is currently seeing a growing number of bike share systems installed and two major
companies are responsible for their operations. At the high-end of the spectrum, industry competition
has historically been considered low, but the ample number of markets, rising adoption rate of these
systems, and growing demand for sustainable transportation options has created an opportunity in many
US cities. Significant hurdles in this industry are its capital-intensive nature, heavy regulation, and
barriers to entry.
key success factors
This industry has many key success factors, but the most important are the following:
• Maintenance of excellent customer relations
• Compliance with government regulations
• Taking advantage of government subsidies and grants
• Establishing and maintaining a good reputation
• Attracting patronage/building ridership
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11. TRIANGLE BIKE SHARE
• Making the system accessible
Bike share systems must adhere to these factors to achieve performance benchmarks. The nature of bike
share is public transportation and though the business models and technologies are new, these KSFs still
apply.
industry trends
Public transportation ridership and demand is Figure 4 - US Urban Population Growth
determined by several key macro-level economic
factors including the following:
• Employment rates
• Price of oil
• Urban population density
• Income distribution and economic
growth
• Consumer preferences
• Federal funding
• Green movement
Some of these factors contribute very favorable
conditions for the growth of bike share systems in the US, such as a growing ‘Cycling Renaissance’7 in
the US over the last decade. Cycling trips have increased nearly 300% while bike share of all trips has
nearly doubled from 1977-2009.7 This trend is heavily supported by green initiatives, changes in US
demographics and the rising cost of fuel.
Furthermore, the population in North Carolina has grown 18.5% since 2000 while Raleigh’s population
has grown 48% in the same period.8 Migration towards downtown and city centers has increased urban
population densities in several Triangle cities.
Public transportation ridership is also on the rise. Locally, the Capital Area Transit system reports
growth in bus boarding and alighting in Raleigh of 24% since 2008.9 At a national level, 10.4 billion trips
were taken on public transportation in 2011—the second highest its been since 1957.10
Favorable economic and social trends, industry growth, the high value of these systems’ low
environmental impact, the economic savings of public transit ridership and sufficient government
funding of public transportation create a very viable window of opportunity for the implementation of a
bike share system in appropriate markets.
“US freeways are currently outdated and plagued with traffic issues – and they
are only expected to get worse. Americans are moving away from rural areas into
urban centers at increasing rates. As this trend continues, traffic volumes and
travel times are expected to increase significantly because many cities are limited
in their ability to expand highway systems due to a lack of planning or available
space. The only long-term transportation solution is to increase ridership rates
on public transit systems.”
10
--IBIS World

12. TRIANGLE BIKE SHARE
MARKET ANALYSIS
For the purpose of this business plan, two target market types will be outlined. First, as a bike share
operator and quasi-government entity, Triangle Bike Share must first win the bid for a city requesting
proposals for bike share operators and vendors.
geographic target markets — primary factors
At the macro-level, TBS will compete with other bike share system operators for the markets within the
Triangle, NC. Raleigh and several other cities in the Triangle have been evaluated against a detailed set
of criterion that estimates bike share system feasibility and demand for a market. The following factors
are considered the highest indicators of feasibility based on experiences from US cities11 and Raleigh
ranks favorably in each:
“…The City of Raleigh is facing a
number of challenges with rapid
• Population Density
population and development
A significant indicator of the system’s feasibility is most increases, rising costs including
often measured with a city or metropolitan area’s
gas prices, and a transportation
population density. Amongst cities currently operating
bike share systems, Raleigh’s population density compares system that is overburdened.”
closest to Denver, CO (2,889 per mi2 and 3,995 per mi2 - Raleigh Bicycle Transportation Plan 2009
respectively).12 Other triangle cities such as Carrboro, NC
are as dense as 3,086/square mi. and Wilmington, NC at 2,614/square mi. meet initial screening for bike
share system feasibility starting at this metric. Figure 5 - Population Density Comparison depicts
Raleigh, Carrboro and Wilmington’s population densities next to those of Portland, OR and Denver,
CO—both home to bike share systems.
Population
Densities
5,000.00
4,000.00
Pop
/
mi^2
3,000.00
2,000.00
1,000.00
-­‐
Carrboro,
NC
Denver,
CO
Portland,
OR
Raleigh,
NC
Wilmington,
NC
Figure 5 - Population Density Comparison
11

13. TRIANGLE BIKE SHARE
• Non-Institutionalized Group Quarter Population Density
Population densities in cities containing many universities will also rank high in non-institutionalized
group-quarter density; since university students are a secondary target market, added emphasis is placed
on markets where these population densities are high.11 Identifying markets with high non-
institutionalized group quarter population densities will yield a more accurate picture of a market’s
viability outside of its primary target market. In the city of Raleigh, more than 10% of university students
(3,925) use a bicycle for daily transportation—forming a significant market segment.14
• Job Density
As the industry analysis mentioned, employment plays a large part in the use of public transportation.
Lulls in public transit ridership and revenues were seen largely during the recession period around 2008.
High unemployment or low job density would indicate a lack of need/demand for public transit options.
• Tourist Attractions
Because the nature of bike trips in the US are largely recreational (48%), the proximity and number of
tourist attractions and park/recreational areas contributes positively to the use and demand for bike
share systems.7 Raleigh has an extensive network of attractors centered on the city’s downtown area. It’s
the state capitol and thus contains many downtown museums, venues, restaurants and hotels.
• Parks/Recreational Areas
The 2009 Raleigh Bicycle Transportation Plan highlights a list of these attractions and their accessibility
and outlines actionable steps to make these networks more bike-friendly. As a city, Raleigh has focused
sharply on improving bicycle facilities and networks in the city—making it a viable bike share market.
• Topography
• Regional Transit Stations
The addition of Raleigh’s proposed rail transit system will create a substantial amount of downtown
public transportation traffic and will be augmented strategically by this system.
• Bicycle Friendly Streets
• Streets with Bike Lanes
• Local Transit Stops
geographic target markets — secondary factors
Many other factors contribute to a somewhat qualitative assessment of the market. There is certainly a
growing, positive bicycle culture in the Triangle, attesting to a cycling national renaissance and voicing
support for many infrastructure improvements and city planning to make cycling safer, more accessible
and a viable transportation option cities. Some of these secondary factors include the following:
• Cycling Commuter Rate
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14. TRIANGLE BIKE SHARE
Cycling
Commuting
Rates
6.00%
5.00%
4.00%
3.00%
2.00%
1.00%
0.00%
Figure 6 - Cycling Commuter Rates Cities with bike share systems denoted with *
Source: SimplyMap.com
While Raleigh’s cycling commuter rate sits very near the national average at 0.43%14, smaller segments of
Figure 7 — Cycling Rates by Block Group in Raleigh). Chapel Hill and Carrboro’s cycling rates place
them in the top 10 in the state in bicycle mode share and as high as cities like Washington, DC and San
Francisco California.14 Although these rates are indicative of a cycle-friendly culture and demand for
bikeable cities, the American Community Survey and Census data from which these mode shares are
extracted, do not account for trips made for recreation, to school or shopping.
Figure 7 — Cycling Rates by Block Group in Raleigh
• Vehicle Ownership
Rates
As a secondary factor, low
vehicle ownership translates to
higher public transit and walking
mode shares, but further
Source: SimplyMap.com, analysis of the target market
USDOC 2010 (use) concludes that vehicle
ownership is not a highly
contributing factor to demand.15
o Public Transit Commuter Rate
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15. TRIANGLE BIKE SHARE
An in-depth and comprehensive feasibility study (currently in early-stage progress) will assess these
variables at a zip code and traffic analysis zone (TAZ) level—offering a clear view of the system’s exact
size, phasing, services area and most strategic placement.
Preconditions and initial screening of the targeted NC markets appear very positive. The service areas
for these systems are densely populated areas with high transit connectivity and ample infrastructure
support. Many markets within the Triangle meet these criteria and thus the triangle should be the next
phase of cities to see interest and implementation of bike share systems.
geographic market competition
As previously mentioned in the industry analysis section, several large bike share operators exist in the
US, but the majority of systems are operated by non-profit or quasi-government companies established
on a case-by-case basis. This type of fragmentation leaves room for some markets’ consolidation.
Establishing operations and creating efficiencies in one market will create credibility to offer to other
markets’ municipalities the service with confidence and a track record.
The largest competitor for geographic markets and city contracts is Alta Bicycle Share, Inc. ABS
describes them as “the only company solely focused on urban bike share operations.” This sister
company of Alta Planning and Design is responsible for the implementation and operations of Capital
Bikeshare—one of the largest and longest-standing systems in the US. They also operate Chattanooga
Bike Share, a system in Melbourne, Australia, the Boston Hubway system and have just been awarded
the contract to install and operate New York City and Chicago, IL’s bike share systems in the next year.
Alta Bicycle Share, Inc. serves as a consultancy to begin planning for the implementation of a bike share
system, partners with equipment manufacturer BIXI for sourcing of all bike share equipment and
establishes operations in the city itself to run the system. Furthermore, ABS has begun to evaluate the
Triangle and has given presentations on initial system projections, timeline, and costs for a Raleigh
system.16
Other bike share consultancies include MetroBike (http://www.metrobike.net/), Zagster
(http://zagster.com/ formerly CityRyde), and equipment vendor B-cycle (http://www.bcycle.com/).
MetroBike, LLC helped implement the original SmartBike DC program—the first in the nation—while
B-cycle has setup systems and delegated operations to city-specific non-profit operators in markets such
as Denver, Boulder, Madison, San Antonio, Louisville, Omaha, Des Moines, Spartanburg, and very
recently added Broward County (the first county-wide system in the US).
end-user target market
An analysis of the public transportation industry and cycling research offers some initial descriptions of a
bike share system’s target market, but surveys of current system subscribers in the US have finely tuned
the average bike share rider. Based on data from Denver B-cycle4, Minneapolis NiceRide15, and
SmartBike DC ridership demographics17 as well as an accurate consideration for economic and social
variables in North Carolina, the target market has been defined by the following characteristics:
Table 1 — Target Market Characteristics
Variable Methodology
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16. TRIANGLE BIKE SHARE
25-64 years old The largest share of this age range is typically
25-34, but usage in age groups such as 35-54
accounts for almost half of ridership.15
Above median income 62% of NiceRide subscribers, 79.4% of Denver
B-cycle subscribers
Healthy 96.6% self-reported excellent, very good or
good health in Denver B-cycle,
Typically walk or bike to normal 88% already walk or bike, 45.9% of NiceRide
destinations users, 86% of SmartBike DC users
Have access to/Own a vehicle 96% of Denver B-cycle subscribers, 60% of
SmartBike DC riders, 65% of NiceRide users
Use other modes of public transit 20% of NiceRide users
Hold a bachelor’s degree or higher 87% in Denver B-cycle, 83% of NiceRide
Subscribers15
motivation
Public bike share schemes offer value to users in several ways. First, the system membership (service)
offers the user a very convenient, autonomous, local transportation option. This type of offering is
considered the last mile/first mile bridge between public transportation and users’ destinations. The
very local nature and saturated service area enables users to get around very quickly and efficiently
within the service area. For example, 89% of respondents of Paris’ Velib system survey stated the bike
share system allowed them to move around Paris more easily.18 Furthermore, 59.6% of NiceRide
subscriber survey respondents reported that what the like most about the bike share system was its
convenience15 while 78% of SmartBike DC subscribers reported the same.17
Second, the service offers a transportation alternative that is emission-free. In fact, a bike share
consultancy and fleet management software group, Zagster, has developed software to calculate the
carbon offset generated by the use of each bicycle and yield this credit as a cash reward for operator. This
software is currently under final development and is expected to deploy worldwide in the near future.19
The green initiative and environmentally friendly nature of the system adds value for commuters in that
they are getting around in an environmentally conscious way.
Third, a significant number of bike share subscriber survey respondents stated they had increased the
amount that they normally rode a bike.15 Bike share systems abroad have generated an increase in cycling
amongst subscribers over 70% in Paris, 44% in Lyon and 66% in Minneapolis.18,15 Bike share systems
have increased cycling rates amongst users in many of the cities in which it’s been installed and has also
15

17. TRIANGLE BIKE SHARE
increased city and state cycling rates. There is a significant value add to the city to increase cycling rates
and public transit usage because of the economic and health benefits that are associated with this trend.
Finally, increased cycling and public transit usage would equate to several economic savings such as less
congested streets, less spending on gas, reducing carbon emissions by converting car trip mode share,
and general public health benefits from exercise by using the system.
The many facets of value added to the user and city sculpt this service as a unique offering with a
similarly unique target market. These target market motivators can help finely tune the service,
marketing efforts and efficiencies to meet performance goals and adoption.
MARKETING PLAN
initiatives and organizations
Triangle Bike Share will begin creating awareness and building potential user bases through
sponsorships and partnerships with local cycling organizations. North Carolina is home to several
cycling-oriented non-profits and cycling advocacy organizations. Each year, several annual events are
held to rally advocacy and assemble fundraising and informational purposes. In addition, North Carolina
recognizes May as national bike month and maintains a positive relationship with the League of
American Bicyclists.
TBS will remain involved with and support local cycling initiatives and organization events within the
triangle throughout its life—thereby firming its investment in the local economic and transportation
climate and ‘voicing’ its support for a cycle-friendly community.
special events
Raleigh and its neighboring cities are vibrant cultural cities with livable streets and many events
occurring in downtown areas. Since system stations are easily installed for temporary purposes, Triangle
Bike Share can easily accommodate very large downtown festivals and events transportation. By
installing temporary stations to meet high demands for downtown mobility to and from parking decks
and local businesses, TBS can capture new audiences and user groups by offering discounted 24-hour
passes.
partnerships
A great deal of value can be added to the system by creating membership perks and partnerships with
local businesses. Some systems have experimented with membership clubs and limited discounts to
system members. Triangle Bike Share will extend this model to a viable level. The bike share experience
should leave the user enthusiastically satisfied and excited about riding again. Therefore, some incentives
can be created for members amongst local eateries, metro connections, and popular retail trip
destinations.
An innovative model for system balancing by incentivizing users can also be driven through
partnerships. To combat an unbalanced system because of a high number of one-way trips via the
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18. TRIANGLE BIKE SHARE
network, redeemable coupons or credits can be offered for those traveling against this current and
essentially balancing the system without moving bikes via motor vehicle.
Triangle Bike Share will also partner with local bike shops around the triangle to promote cycling, safety,
and bicycle ownership and maintenance workshops as well as voice the benefits of bike sharing to the
community. Partnering with local shops will also give members the opportunity to buy a helmet at a
lower cost, as TBS will most likely subsidize the cost of helmets to encourage safety amongst riders.
sales and distribution
Membership sales will be available at all times through the system’s website at each temporary or annual
duration. This gives users instant entrance to the systems membership and a dashboard from which to
find stations, map out trips, and keep track of carbon offset, miles ridden, calories burned and similar
metrics. Membership smart cards or RFID key fobs will then be mailed to the member to use at the
stations.
Additionally, the automated kiosks at each station will be capable of vending temporary or long-term
memberships. In this manner, the kiosk will give the member an unlock code to use to unlock the bike
from the stations.
Memberships will always be available for purchase in these two mediums, but further research may
reveal more convenient/alternative options such as purchasing through a smart phone or in conjunction
with other transit passes. The system’s core competency is convenience; TBS will make significant
efforts in increasing efficiency and convenience in these regards.
Additionally, should the system be extended and implemented to meet the needs and service area of
nearby universities, membership sales may occur in an opt-in fashion for students and eliminate the need
for ordering a membership.
MANAGEMENT TEAM AND COMPANY STRUCTURE
Triangle Bike Share is currently in its early stage. Members to complete management team currently
being sought out. The expertise and passion from the appropriate members will establish a well-rounded
team that will quickly become bike share operations experts, establishing best practices for the industry
and remaining ahead of the curve of innovation and efficiency.
MANAGEMENT TEAM
president Josh Bielick
operations director seeking
general manager seeking
urban planner s e e k i ng
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19. TRIANGLE BIKE SHARE
TBS currently seeks
• an operations director with expertise in fleet management or logistics and a keen eye for bicycle
transportation and its growing place in city planning.
• A general manager to direct and lead teams in planning implementation and establishing
operations
• An urban planner to lead in feasibility studies and program/implementation parameters
BOARD OF DIRECTORS
A preliminary board of directors has been proposed, but is expected to expand. Members of the board of
directors have proven track records in industries such as transportation and urban planning.
Additionally, the city will appoint members representing its own interests and experience to form a
representative board.
Creation of the Board of Advisors is underway.
OPERATIONS PLAN
Bike share schemes across the globe offer much the same product, but vary greatly in their
implementation, operations, and initial funding. The most successful vendor/operator schemes in the
past have been completely private. Early European systems have seen great success in the private
vendor/operator and advertising revenue model. In this scheme, advertising agencies provide funding
for these systems and are granted restricted advertising and street furniture rights. This model has shown
great success in Europe (Paris and Lyons, France), but has only shown strength in the US market in
select markets such as Miami Beach (DecoBike). Triangle Bike Share will operate differently.
equipment supplier
Triangle Bike Share will provide turnkey systems by establishing operational parameters and structure,
purchasing and installing equipment and seeking funding for upfront capital intense costs. The
equipment will be purchased through Public Bike Systems in Montréal. PBS is the sole manufacturer of
all BIXI bike share systems equipment in Canada and the provider of all equipment for Alta Bicycle
Share systems current and planned. PBS is on the cutting-edge of systems and equipment development
and currently offers the most modular, robust, equipped, and stylish bike share systems equipment on
the market.
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20. TRIANGLE BIKE SHARE
operational models
Figure 9 — Bike Share Operational Schemes, depicts the several operational/funding structures for bike
share systems. Through much consideration and study, Triangle Bike Share will operate as public
operator, contracted by the city or municipality. Additionally, it will purchase equipment through a
public vendor, Public Bike Systems of Montréal, and seek funding through federal or state transportation
grants. The most similar example of this model is the Boston Hubway system—funded almost entirely
through a Federal Transit Authority grant—which now contracts operations from Alta Bicycle Share
and uses equipment purchased from Public Bike Systems.20
Public
Vendor
Private
Vendor
Non-­‐ProHit
Public
Operator
Private
Operator
Operator
Private
Public/Private
Advertising
Private
Public
Funding
Public
Funding
Funding
Funding
Funding
Funding
Figure 9 — Bike Share Operational Schemes
Advantages of this system include the operator’s mission to increase ridership and run the system
efficiently, relieving the funding burden from the city itself, and the city can still maintain direct control
over implementation and service. Disadvantages of this model include a limited selection of operators
with experience and limited availability of funds for the program.20
This business model poises Triangle Bike Share in a strategic and scalable position. Beginning analysis
and implementation planning in initial markets will garner the confidence needed to exhibit operational
viability and establishing operations in the first Triangle market will bridge the gap to the next
geographic markets.
By embracing the ‘fourth-generation’ concept of bike share, TBS will fully utilize and collect vast
amounts of usage and trip data. This relatively new concept still has kinks and inefficiencies to work out;
early systems struggled with implementation and adoption due to lack of understanding of the target
market, needs of its users, and inability or lack of technology to collect GPS trip data for usage of all of
the bikes. Focusing on next-generation technologies and identifying key success factors particular to our
market and trip and usage trends, we can overcome a steep portion of the learning curve and ramp the
company into a bike share operations leader.
PRODUCT DESCRIPTION
what is bike sharing?
Public bike share is a unique offering to urban dwellers. Bike share systems have existed in many forms
since 1965 and developments have been substantial and forthcoming. Systems and schemes have mostly
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21. TRIANGLE BIKE SHARE
developed in phases. First generation systems were simple; public use bikes were used freely and riders
could take them and leave them wherever convenient. This scheme was quickly devastated due to theft
and vandalism. Many more systems were attempted in this fashion—most differentiated only in the
color of the bicycles. It wasn’t until systems in Europe began utilizing stations and vending kiosks that
the systems combated theft and vandalism.
Fast forward to now; 3rd-generation bike share systems offer safe, sturdy aluminum frame bicycles with
comfortable one-size-fits-all frames and many mechanical simplicities. Automated kiosks with touch
screens facilitate purchases of temporary memberships and are often powered by solar panels and
batteries. Stations securely lock the bikes in and register their presence via RFID; bikes are released
electronically by the kiosk or by a member’s membership smart card or key FOB. GPS tracking and
safety deposits deter theft and vandalism and the automated features of the system have created a
substantial convenience for users. These systems are truly technologically advanced and pose a very
feasible transportation option for dense, urban areas.
Bike sharing is simple. A member may use his/her membership smartcard to vend a bicycle at any of the
system’s stations. The bike is then free to ride for the next thirty minutes (time span dependent on
further geographic analysis); if a user holds the bike for longer than thirty minutes, usage fees are
incurred at 30-minute intervals past the expiry point. When the user has reached his/her destination,
they can then deposit the bike back at the nearest station anywhere in the system. The bike is then
available for its next rider.
Figure 10 — Bike Sharing: Visually explained depicts the bike sharing process in four easy steps.
Figure 10 — Bike Sharing: Visually explained
service
From its beginning to now, the product has remained the same—a bicycle offers efficient, inexpensive,
and zero-emissions transportation with high reliability and many health benefits. Triangle Bike share is
selling much the same thing—a very affordable, convenient, healthy, and environmentally friendly
transportation choice inside the serviceable area.
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22. TRIANGLE BIKE SHARE
More specifically, memberships to the service and user fees are the primary revenue streams for the
service (sponsorships could outweigh this dependent on availability). Memberships are broken down
into a duration-based category. 24-hour, 7-day and 30-day temporary memberships are sold from the
system’s website and automated station kiosks.
Table 2 — Memberships and Sales Volume
Membership Type Estimated Price First Year Projected Volume
24-hour temporary $6 3566
7-day temporary $20 40
1-month temporary $30 75
Annual Membership $80 1156
Table 2 — Memberships and Sales Volume projections are based off of preliminary market size
estimates, sales potential and first year membership sales performance in similar markets such as Denver,
CO and limited sales metrics information in larger markets such as Boston, MA released by operators
and bike share agencies. Finalized demand analysis and pricing strategy will ultimately define the price
points and demand forecast for the system. All pro forma financials are based on these estimates.
FINANCIAL PROJECTIONS
start-up costs
In the proposed provisional model, Triangle Bike Share will operate the bike share system under a city
contract. Upfront capital investment will come from grants and private sources. Systems that have
employed this model are Boston Hubway, which raised the $4.5 million in grant monies from the
Federal Transit Authority; the Minneapolis NiceRide which secured initial funding through the
Democratic National Convention; the Chicago bike share system contract will meet capital and start-up
costs with a $18 million federal grant and an additional $4 million federal grant for phase two of the
system; Capital Bikeshare, which saw some $6 million in grants from the US Department of
Transportation 21 and more from private donors and local public transportation authorities.
Early estimates for a Raleigh system total 40 stations and 400 bicycles. The capital investment needed
will be approximately $4000 per bike for implementation and an annual operating cost of approximately
$1800 per bike ($155 per bicycle per month). 22
Equipment is the largest expense, costs of stations ranges from $22K-$38K depending on the size and
installation is around $4,500 for each station.22 Table 3 breaks down these costs.
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23. TRIANGLE BIKE SHARE
Table 3 — Startup costs for Raleigh System
Item QTY Unit cost Total Cost
Bicycles 400 1000 $100,000
Stations 40 ~$30,000 $1.2M
Station Installation 40 ~$4500 $180,000
TOTAL $1.48 Million
operational costs
Operational costs can be broken down to a per bicycle measurement of $155 per bike per month. The
stations are automated and require no vending personnel. Operational costs are derived from the
following sources:
• 24-hour system service and operability
• inspection and routine maintenance on bikes
• balancing the system to distribute bike evenly amongst stations
• customer service center personnel
• robust website for member profiles, statistics, tracking and membership sales
Source: ‘How Jurisdictions Can Join Capital Bikeshare’ Cost Basics
Expected life of the bicycles is six years, while station replacement can be anticipated on a 10-year basis.
This gives a lengthy window of depreciation on equipment, but most systems do not expect to recover
startup capital investment. This is precisely why cities and systems pursue one-time grants and private
funding to purchase the system and contract operations from an experience company.
Operational expenses for Triangle Bike Share’s first system, first year are expected to be approximately
$853,685.
revenue sources
Revenue sources for the system come from three main sources, but can vary with contract and city-
specific stipulations. Sources include the following
• Membership sales: a primary revenue source from demand for the system’s service.
• User Fees: usage fees beyond that of a membership cost
• Sponsorships: obtaining a corporate sponsorship for the system can generate significant revenue
for the system and is highly advisable.
• Street Furniture/Advertising: the most successful systems employ an advertising contract with
the city. Typically this revenue source is high, but sometimes conflicts with existing contracts or
no-advertising ordinances.
Table 2 — Memberships and Sales Volume—offers a glimpse at initial estimates for sales volume of
memberships by type for the first year. Based on comparable bike share models and sales performance in
systems across the country in similar demographic, geographic and cycling metrics, demand has been
estimated for the Raleigh market and a breakdown by month (TBS-Sales) can be found in the appendix.
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24. TRIANGLE BIKE SHARE
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25. TRIANGLE BIKE SHARE
APPENDIX
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26. TRIANGLE BIKE SHARE
SOURCES
1
American Community Survey Data 2010
2
Bike Share – History, Impact and Prosivions –Paul DeMaio
3
http://plancharlotte.org/story/charlotte-bike-sharing-dnc-uptown-downtown
4
Denver Bike Share 2010 Annual Report
5
CommuterPageBlog.com, Paul DeMaio
http://www.commuterpageblog.com/2012/02/capital-bikeshare-striving-to-become-
financially-self-sufficient.html
6
IBISWorld.com Public Transportation Industry Report, June 2011
7
Transportation Research Part A – Bicycling renaissance in North America?
8
US Census Bureau
9
Capital Area Bus Transit Development Plan, Technical Memorandum #2, (2011)
10
http://www.apta.com/mediacenter/pressreleases/2012/Pages/120312_2011Ridership.aspx
11
Seattle Feasibility Study
Department of Urban Design and Planning, University of Washington
12
CityData.com
13
SimplyMap.com
14
Raleigh Bicycle Transportation Plan 2009
15
Minneapolis NiceRide Subscriber Survey 2010
16
Bike Sharing for the Triangle Region March 2, 2012s
17
SmartBike DC Survey Results
18
Case for Bike Share: Opportunities in NYC
19
http://technicallyphilly.com/2011/02/21/cityrydes-bike-sharing-software-close-to-being-awarded-
carbon-credit-certification
20
Philadelphia Bikeshare Concept Feasibility study (2010)
21
http://dcist.com/2012/03/national_mall_capital_bikeshare_sta.php
22
Capital Bike Share “How Jurisdictions Can Join Capital Bikeshare”
25