So apparently Lyft is the largest bikeshare operator in North America. They operate around 68,000 bikes and scooters, which equaled some 52 million rides last year. Ridership also continues to grow. Since 2020, ridership has grown in cities like New York (+56%), Chicago (+79%), Boston (82%), and Denver (+170%).
However, this part of Lyft’s business was in the news this week because the company announced that they are entertaining proposals to sell it, as well as “strategic partnerships.” The company has said that it remains committed to offering bikes through the Lyft app, but clearly it is trying to shore up its balance sheet.
This raises some interesting questions. Can bikeshare be a profitable and sustainable for-profit business? Or do we now need to be thinking of it as an important public service that is deserving of subsidies — similar to how public transit and cars/roads work in most cities? My own view is that these networks are here to stay regardless of how profitable or unprofitable they might be.
For additional stats on Lyft’s bikeshare business, click here. One of the figures that I found interesting, but not surprising, was that 71% of riders use bikeshare for “fun.” This is by far the most popular use case. The next most popular use is “errands” at 39%.
One response to “Lyft might sell its bikeshare business”
“ Or do we need to be thinking of it as an important public service that is deserving of subsidies?”
That’s already happening in cities like Edmonton and Calgary. Specifically, ride share companies negotiated agreements with municipalities to park their bikes on public land and infrastructure (like sidewalks and bridges) without charge. That’s a pretty sweet deal already, doing away with the cost of physical buildings that eat into cash flow. I am personally not in favour of this subsidy as scooters are typically parked haphazardly, often creating safety hazards. Furthermore, the City of Edmonton passed a resolution prohibiting private ownership of this type of locomotion. Sweetheart deal? Monopoly?
Let’s hope that the next chapter doesn’t replicate the Chinese experience. That country now has electric scooter dumps that are filled with millions of these bikes and scooters.