Bike share is too cheap, ctd.

From the Wall Street Journal regarding the financial troubles of Citibike in New York:

Photo by the Associated Press

One issue is that Citi Bike has proved more popular than expected with annual users who generate comparatively little revenue. Some 99,000 people pay $95 a year plus tax to be able to use the bikes for 45 minutes at a time.

The potential for far greater revenue, however, is with short-term users. Many of those were expected to be tourists, and they haven't used the bikes nearly as much as officials had anticipated, people familiar with the matter said.

A 24-hour pass costs $9.95 plus tax and a seven-day pass costs $25 plus tax. Purchasing short-term passes has proved difficult due in part to balky kiosks that accept payment for the bikes and computer glitches.

As I wrote previously, the financial model for bike sharing needs to be adjusted. It's actually a premium service that should be priced accordingly. If not, it will not be sustainable as a service, which would be bad news for everyone concerned about creating walkable places. $95 annually in New York City is too cheap.