Yesterday, Maryland Governor Martin O’Malley announced that seven jurisdictions in Maryland will be receiving grants to start bike share programs. The money for these grants comes from the Maryland Department of Transportation’s Federal Congestion Mitigation and Air Quality, so these bike shares will be federally subsidized. O’Malley says of the program:
“As we celebrate Bike Month, these grants will help bring Bikeshare stations to Maryland,” said Governor O’Malley. “Bikesharing allows Marylanders an affordable option for short-distance trips as an alternative to public transportation, driving or walking. By getting out and taking a bike ride, we also learn to enjoy more of Maryland’s natural treasures, help reduce the impact on the land, improve our fitness and well-being, and enhance our quality of life.”
The program would be of a similar model to DC’s Capital Bikeshare with capital costs covered primarily with federal grants and some local contributions. I am not much of a bicyclist myself, but I can clearly see the appeal of bike share systems. They provide the convenience of riding a bike to a destination without having to ride it back again, introducing additional flexibility to this mode of transportation. Also, the bikes are better-quality than what many cyclists would buy for themselves.
The problem with the politics surrounding bikeshares is that bicycles are not public goods, but elected officials such as O’Malley like to paint them as such. As Adam has previously pointed out, no transportation investment is a public good. The two characteristics that define public goods are nonexcludability and nonrivalrous consumption. Bike shares are perfectly rivalrous and excludable. Because no more than one person (maybe two people) can ride a bike at a time, bicycles are lower on the public good scale than transit or roads.
Greater Greater Washington cites a study that publicly-supported bicycle shares are, shockingly, not making money, but GGW says this doesn’t matter since bicycles provide so many benefits to their riders. In a system of better incentives, though, both a private company and cities with bikeshare programs could make money if the private company leased public space for docking stations.
TBD points to a study that analyzes the demographics of Capital Bikeshare users, unveiling the regressive nature of this program. About 80% of CaBi annual members are white, over 80% have college degrees, and 43% have graduate degrees. But from a politician’s perspective programs don’t get much better than this. The capital costs are spread across all US taxpayers through CMAQ grants while the benefits are narrowly concentrated on a population of likely voters.
Lydia DePyllis reports on a pilot program that would bring CaBi access to 10 homeless people who are willing to jump through major hoops, and new proposals to require developers, rather than federal taxpayers to pay for new docking stations. Both of these programs could make CaBi somewhat more equitable. We could provide targeted benefits to low-income bicyclists though with a voucher system for a privately run bike share and achieve greater benefits at a lower cost.
By leasing sidewalk space to private companies to have bikeshare docking stations, these programs could easily become an all-around win for customers, companies, and cities, but as it stands, they hurt everyone except for their users, a government contractor, and vote-seeking politicians.
Compared to other transit modes, CaBi is doing very well, nearly covering its operating costs, but none of its capital costs, with membership fees. I’m picking on this program, because it is currently so regressive and because perhaps it’s new enough to turn over to the market. The private bikeshare system proposed in Los Angeles demonstrates that some investors think there are profits to be made in this industry in an arguably less-bikeable city without imposing the costs of bike sharing on those who don’t use it.