Vancouver’s Mobi (by Shaw Go) has some interesting times ahead. Next-gen dockless systems are edging nearer. Costs march downwards as competition rears its head.
First is Ubike Technologies Inc (U-bicycle), who’ve put 160 bikes into Victoria, and opened an office in 2017 in Vancouver. Promo clip HERE.
While it’s one thing to be the first to put bike-share into a city, it’s a new world when the second comes along.
It becomes harder for each to compete, due to revenue split. But the business should eventually drain to the low-cost entrant, as long as other things like coverage and ease-of-use are the same. In this case, U-bicycle charges $1 for 30 minutes, drawn from cash deposited in the rider’s account. Mobi has a much broader and more complex charge scheme based on daily, quarterly or yearly membership fees. But you’d be hard-pressed to ride enough to get your per-ride Mobi costs down to $1 for 30 minutes.
For the rider, it becomes a choice: both systems, or one. A membership fee at one or a deposit at the other. One app or two. For the city, it is more complex. Several hundred docks, or several thousand bikes at racks and lamp-posts within the coverage area. Stranding a supported system vs. no-cost entrant. And who knows what lurks behind the scenes in the agreements and understandings with Shaw around their sponsorship.
The concept of integrating Mobi and U-bicycle looks like a non-starter. Starting with the apps, then cost structure, money-handling, telecommunications, back-end logistics, customer service, fines and pick-up fees, revenue-splitting, cost allocation. [Shudder: Two bosses].
Second is Dropbike, recently approved by city Council in Kelowna for up to 1,200 bikes in an 18-month no-cost pilot starting April, 2018. Interesting difference to U-bicycle is the Dropbike concept of “parking havens”, where riders are encouraged to leave their bikes when the ride is over. Cost is really low, at $1 per hour, with extra cost if you don’t drop the bike at a haven. Otherwise the two systems are similar, and so are the bikes. Dropbike won’t supply helmets.
Kelowna’s regional programs manager Jerry Dombowsky shows off one of the Dropbike cycles that will be used in the city’s new bike-share program while addressing council Monday.—Image: Alistair Waters/Capital News
I see the merits of both systems. For me, unlimited access for $99 and knowing where the bikes are going to be is unbeatable. Although, I have been run commuting recently, I have used Mobi extensively commuting to work and many other local trips.