Lyft Follows Uber Into Bike-Sharing Lane, Buying Owner of CitiBike
Can someone explain the economics of services like this? I just get the feeling that these bike-sharing services are running on a good sales pitch and a market which seems obvious but isn't really there.There are probably four or five competing services in my city and yet I have never actually seen a single person actually riding them. There are certainly people riding bikes but it's always their own bike.Complications I See:- There's a pretty narrow window between a distance that's too far to walk but impractical to hire a car. And since ride sharing is super cheap for this use-case it's a tough market.- It's useless if people are unfit to drive: injury, tired, drunk, etc..- It's not great for going places with friends because it doesn't take a very large group before someone isn't fit to bike. Also, for 6 people each taking a bike is $24 for a 30 min ride. Any ride sharing company will be cheaper than that, you don't have to work, and you'll get there much faster than 30 min.- Everyone except literally the current user of a dockless bike is going to hate them so you're limited to where the company has docking stations. They're going to be the fastest vandalized property.- Anyone who's actually into riding bikes will just buy one. If you're going to be on them for an extended period of time you're going to want one that's light, comfortable, well maintained, and correctly sized for you. I would think these would be your loyal customers but it's exactly the opposite of what they want.- Technically you're not guaranteed a bike back from wherever you go. Although in practice you probably will since in all likelihood you're the only user of this particular service.- Your biggest market would be commuters who want to save on paying for a car/taxi/subway but people with regular destinations should reasonably just buy a mid-tier bike.