Limebike have reported on their first month of operations in Reno: https://www.rgj.com/story/life/2018/07/ … 747437002/
In May, Reno, Sparks and the Reno-Sparks Indian Colony all received about 1,000 bicycles to test the dockless bike-share service. About 21,000 riders took 36,000 trips for over 35,000 miles, according to LimeBike’s latest numbers.
The article says there’s a ten-member Limebike team in Reno. So the numbers look like this:
1.71 trips per rider
$1 per trip
$30,000 average salary (WAG) (probably that's low)
So they made $11,000 in May, not including overhead costs like office space, collection vans, insurance and the bikes themselves. My guess is once you factor all that stuff in they are either breaking even or going into the red (depending on how you amortize the cost of the bikes themselves; I reckon they must cost at least $150 each to manufacture (they are custom made for Limebike)). But it’s only the first month. 21,000 riders is about 5% of the Reno/Sparks metro area population, which seems like a pretty big percentage for the first month.
So how do they increase revenue?
- More bikes to get more rides;
- More users to get more rides.
Personally, I think 5% of the population is a pretty high adoption rate (another unrelated figure to put this into perspective: even in states where a CCW is easy to get, no more than 5% of the population is ever legally carrying a concealed weapon, and it’s usually around 3%). This suggests to me that almost all the people who are likely to use Limebike are already doing so, but of course I could be very wrong about that. I suspect the best thing to do would be to get those early adopters to use Limebike even more, make it a part of their daily lives. I’ve downloaded the app; Zuly actually rode a Limebike last week.
Unlike with most other cities, Reno and Sparks have granted Limebike a monopoly on bike sharing in the area. That’s good for Limebike, but not so good for riders (Waste Management has a similar deal, and it’s a very bad deal for customers). But it might be the difference between Limebike profiting handsomely or losing their ass in the Truckee Meadows.