Produced by nextbike UK

Transcription

1 Community Led Public Bike Hire A guide to introducing bike sharing to your city Produced by nextbike UK

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3 contents Author: Rob Grisdale Design: Natalie Clarke about this guide the challenge about nextbike benefits of community-led schemes a quick overview of bike sharing social impacts of increased cycling economic benefits of public bike hire how to estimate scheme costs long term financing scheme planning and fundraising process additional fund suggestions useful information our private / third sector partners

4 about this guide Welcome to our short guide Community Led Public Bike Hire designed to help you, or your organisation, introduce public bike hire to your city or town. We decided to produce this guide after experiencing first-hand the benefits of a community-led approach over the traditional public-sector led projects which we have found can be very slow to progress, or never get off the ground in the first place for political or financial reasons. Hopefully this guide will inspire you to take the lead and get your town or city onto the ever-growing bike sharing global map. 4

5 the challenge As you will learn by reading on, the challenge to introduce Public Bike Hire is likely to involve building support, searching for funding and writing proposals. This takes time, dedication and energy to manage. The scale of the task will depend on certain factors: Scale of the system Level of political support Access to funding Cycling culture in the area From experience, it may take just 6 months or 2 years to get wheels on the ground so be prepared to be patient and focussed. If you don t have any time to commit at the moment, consider saving this plan for later or encouraging another organisation or individual to help or lead. If you decide to go for it, we are sure that you will find the process hugely rewarding. We guarantee a big smile on your face when the first person whizzes past on one of your hire bikes. 5

6 about nextbike nextbike is one of the leading international operators of bike sharing systems with 25,000 bikes in 80 cities across 16 countries, and growing. The company was founded in 2004 in Leipzig near Berlin. Our biggest projects are Metropolradruhr in the Ruhr area with 2,700 bikes and Veturilo in Warszawa with 2,500 bikes. We landed in the UK in the summer of 2014, launching schemes in Bath, Glasgow and Stirling. Our Glasgow scheme is one of the most successful schemes in the UK with 35,000 rentals in the first summer alone. Our strength lies in our ability to combine high performance, cost efficiency and flexibility to deliver solutions that are tailored to different budgets and applications. 6

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9 benefits of community-led schemes Most public bike hire scheme projects are led by the public sector, typically city councils or equivalent local authorities. The operator is selected following a planning stage and formal tender process. Public sector led projects are usually very slow to materialise, normally taking between 2 and 3 years from the initial feasibility studies to launch day. Political processes, funding restrictions and strict procurement rules are to blame. Here are our top 5 benefits of community-led public bike hire: Bikes can hit the road in months due to less bureaucracy, a simpler procurement method and quick decision making. Key stakeholders are engaged early and wider community support is generally higher than public sector projects. The community has more say, from choosing station locations to branding the scheme to make it their own. Less time and public money is spent on complex procurement and form filling so generally there is better value for money for everyone. Public sector contracts often demand huge investments in time for monitoring and reporting, therefore poorer value for the city. 9

10 a quick overview of bike sharing A public bike hire scheme (or bike sharing scheme) is a service that allows registered users to borrow a bike for a short period of time, perhaps just a few minutes to get down the street or a full day to explore the area. Bikes are provided at self-service stations across the town, city or campus it serves. The bikes are specially designed to be very visible and robust enough to handle being bashed around. The station infrastructure can vary from standard bike racks and signage to high-tech docking stations with GPS tracking and wireless communications. Maintenance and redistribution accounts for up to 80% of the overall cost over the life of a scheme. A local team is required to manage and service the bikes. This is often contracted to an existing local organisation. The maintenance team redistributes the bikes and maintains the fleet on a daily basis to ensure bike availability and quality of service. They are well supported by the operator with the necessary management software system, training and spare parts. The user s account is charged according to the local tariff. All nextbike schemes across the UK currently use the same tariff system: regular fare (no annual fee) subscriber fare ( 60 per year) first 30 mins per ride 1 free every additional 30 mins hours

11 social impacts of increased cycling Public bike hire schemes remove many of the barriers that stop people cycling regularly; not having to bother with maintenance, making cycling feel like a social norm, being able to return a bike anywhere. Understanding the social benefits is likely to be important for your fundraising activities as people will want to know what the value of the scheme is. Before considering the impact of the scheme, it s important to appreciate the benefits of cycling in general. Improved health It is widely accepted by experts, including Chief Medical Officers in the UK and the Department of Health and Human Services in the US, that regular exercise is good for your health, ultimately reducing mortality and morbidity. People aged should be doing at least 2.5 hours of moderate intensity exercise each week in bouts of at least 10 minutes to reduce risks of ill health significantly. Cycling is classified as being a high intensity activity and is much easier to build into daily life because it is also a very efficient method of transport. In the past there has been some debate about the benefit of cycling against the risks. This is now less contentious since 1992 when the British Medical Association (BMA) concluded that the benefits to health outweigh the risks from pollution inhalation and accidents by 20:1. Reduced car travel If people choose to cycle rather than drive a car, they are taking up a third of the space of a car during the journey and an eighth of a car parking space. This means less congestion and emissions associated with cars, and even public transport. Access to jobs Cycle hire schemes can help people access employment easily, therefore making more options available to them. This may be direct access to employment or improved access to and from transport hubs, therefore facilitating the so-called first mile and last mile of people s journeys. A better place Bike sharing schemes are a marque of a modern city and make the place feel more alive. Visitors can explore without jumping on bus after bus and residents spend more time enjoying their city and spending time in their more connected community. The following graphic from British Cycling illustrates the effect of increased cycling to Dutch levels is a nice visual way of presenting the main benefits: 11

12 economic benefits of public bike hire Quantifying benefits of increased cycling is tricky. There are so many variables and unknowns. Currently, the most recognised method is the Health Economic Assessment Tool (HEAT). This simple assessment calculates the health benefits of reduced mortality and provides a monetary saving, this being considered the dominant benefit. HEAT is designed for assessing the economic benefits at a local level. The downside of this method is that it will probably underestimate benefits as it does not account for less quantifiable effects such as decreased morbidity or the intensity of a cyclist s effort whilst riding. This assessment tool was deployed by the Glasgow Centre for Population Health to assess the impact of cycling in Glasgow. Based on 2012 cycling data of 5,638 trips per day, there is an economic saving of 4.35m per year. You can read about this case study at: ts/133. Using this method, you too can calculate the economic benefits for your own town or city to support your case. You can read more about the Glasgow case study or how to conduct your own assessment using the web links provided in the useful information section of this guide. If you don t have time to apply the tool to your local area and need a very quick estimate, why not use the data from Glasgow. The estimated number of trips for a scheme will vary from city to city. A useful starting point would be between 1 and 2 rentals per bike per day on average. To get an idea of the number of bikes that your town or city can support, you can work on a rough guideline of 20 bikes per 10,000 population for a town or city, or 30 bikes per 10,000 people for campuses. So, if you live in a city with a population of 100,000 you may aim for 200 bikes and 200 to 400 trips per day. This would equate to economic benefits of 594 and 1,188 per day. It may take some time to reach these targets but it can be done. Time to get your calculator out! 12

13 Working example: If the annual benefit is 4.35m and there are 5,638 trips per day. Assuming there are 260 working days per year, the estimated benefit per trip can be calculated as follows: 4,350,000 / 260 / 5,638 = 2.97 benefit per trip 13

14 how to estimate scheme costs Cycle hire schemes are good value for money, but do require investment. There are two distinct cost types; capital costs of equipment and ongoing operational costs: Capital costs the one-off upfront cost of establishing the scheme, including bikes, rental stations, ground preparations, production, delivery and installation. Ongoing operations the daily costs of servicing the scheme including redistribution of bikes, maintenance, customer services, marketing and spare parts. The following table provides ballpark costings: Capital costs Item Cost per bike Bikes Rental stations 1,000-12,000 We usually require the capital cost to be funded, followed by a period of decreasing operational subsidy as the scheme becomes more established. The level of funding support required depends on the support locally and nextbike are always open to ideas including co-investment for attractive proposals. Our model is for-profit but always based on best value for the city. We achieve this by taking measured risks and co-financing the scheme based on the estimated scheme revenues. You will find that other operators operate differently so we would encourage you to explore options. Ongoing costs Item Monthly cost Annual cost per bike per bike Local service partner (maintenance /redistribution) Spares and operator support Installation/set-up Project management 15% of total above Customer services 5 60 Total Dependant on choice of system Estimate only - allow +/- 20% depending on local variables 14

15 long term financing Cycle hire schemes are generally not profitable on paper when all costs are considered. Most schemes across the world require funding to operate. Our aim is always to achieve financial stability so the revenues we create cover the costs of operating the scheme after the initial investment in capital from a funding partner. With the right approach, appropriate experience, and for the right city, this is possible. The revenue prospects vary from location to location. Some schemes are profitable almost immediately, others require 1, 2 or 3 years of subsidy to build the revenues. Some never achieve profitability but even then there is often a valid business case for continuing to operate the scheme. What makes a scheme work successfully in some cities, and not others, is not within the scope of this guide, but some guidance is provided in other publications as listed in the useful information section. We are open to the idea of co-investing in the right projects. If you would like to discuss partnership opportunities, we d be glad to hear from you. 15

16 Now you have a better understanding of the cycle hire scheme concept, costs and funding structures, you re in a much better position to start your project. The following is a best practice process based on what we ve experienced across other projects in the UK and overseas. A Establish demand B Develop proposal C Identify possible D Approach fund 16

17 scheme planning and fundraising process A Establish demand and build support List all the potential stakeholders and compile the relevant contacts to build a database of key support. The larger and more powerful the group, the more likely the scheme will be to get the financial support needed. The most likely supporters will be local authorities, universities, colleges, transport operators, tourist boards, big employers, business parks, Business Improvement District companies (BIDs) and retail parks. At this stage, your message is very important that you or your organisation plans to lead on the project but that you require their support to make it happen. This interest or commitment to support should not just be moral support but financial buy-in as an advertiser, sponsor, or corporate member. Remember to outline what benefits the organisation will get for this support. You should aim to get written letters of support from senior members of each of the stakeholders. B Develop the proposal document So you ve built a good support group. Now is time to start planning and shaping the scheme. This is the fun part which everyone can join in. Scheme planning is not covered in this guide, but it s important you understand the basics: The potential user types that the scheme would serve Geographical areas that should be covered The number of stations and bikes required to achieve the coverage The type of system that will best suit the project Identify potential local maintenance subcontractors Develop initial costs and revenue forecasts Identify funding shortfall and therefore the level of financing required We are more than happy to assist with this stage. We ve been involved in the planning of many schemes in the past and have lots of experience to share. 17

18 scheme planning and fundraising process C Identify possible funding partners If all has gone well, by now you should have: A willing and ready support group with letters to prove so A full proposal detailing your plans Funding requirements including capital costs and estimate of ongoing subsidy required If you haven t already, it s time to see whether the financial support you have achieved so far is sufficient to cover the costs, and if not where the remainder will come from. With good local support it should now be much easier to secure funding from your local council or one of the active funds for this type of project. Fund options will vary depending on timing and location so you will need to do your research. The following section provides details of some funds that may be worth exploring. D Approach fund managers Now you have identified potential funders, the best way to proceed is to invite the representatives or fund manager to a meeting together with all the scheme stakeholders and supporters. Here you can outline the proposal and be clear about what financial support is being sought. This is your chance to complete the final piece of the jigsaw and turn the vision into reality. Be prepared! Remember to tailor each proposal in order to align it to the objectives of the fund. For example, a fund may be dedicated to improving access to employment, or for boosting tourism. Ensure that you communicate how a cycle hire scheme will meet these objectives. With a bit of luck, they will like your proposal and will be able to guide you through the relevant funding application. An operator like nextbike will then be ready to guide you through the implementation phase, and you can sit back and watch the rest unfold. 18

19 additional fund suggestions Funding options are always changing so we strongly encourage you do your own research. The following will help you to understand the types of funding that may be available. You can find links to each in the useful information section. LOCAL SUSTAINABLE TRANSPORT FUND Local Sustainable Transport Fund Following the local transport white paper creating growth, cutting carbon published in January 2011, the government awarded 600m ( 1bn including match funding from local authority partners) to 77 authorities to deliver schemes between 2011 and m capital funding for the Fund has been made available through the Local Growth Fund for 2015 to The department has also made available a further 78.5 million of revenue funding to enable further investment in sustainable transport schemes. Perhaps your local Council has been awarded funding? Speak to your local council cycling officer or transport planning team to establish whether there is a possibility to provide funding. If not, they may well suggest alternative ways of supporting your plans. Remember, you are likely to need their support anyway for planning permissions. 19

20 additional fund suggestions Cycle City Ambition Fund In January 2013, Minister Norman Baker announced 42 million of investment in cycling which would comprise of two elements an urban element and an element for rural areas covered by a national park. The Cycle City Ambition grant guidance details the scope of the fund, the assessment criteria and the application process. The application form and pro forma templates are both required when submitting a bid for cycle city ambition grant funding. One North This is a new transport plan developed by key northern cities. The ambitious programme laid out would maximise economic growth across the north, boosting transport links and helping rebalance the national economy. The 15 billion, 15-year investment plan, which complements the HS2 proposals, could deliver benefits for the whole of the North of England including up to 150% additional capacity on roads as much as 55% faster journey times on a faster, more frequent interconnected rail network. Whilst this announcement does not cover cycling specifically, there is potential for cycle hire to figure in such large investment plans. This is one to keep an eye on at this stage to see how the plans unfold. Transport Scotland / Cycling Scotland Through Cycling Scotland, Transport Scotland makes funding available for a wide range of cycling related projects to work towards the 10% by 2020 vision as set out in the Cycling Action Plan for Scotland We have experience of delivering projects with funding from Transport Scotland. Climate Challenge Fund The Climate Challenge Fund supports communities across Scotland to take action on climate change and move to low carbon living. The Fund supports projects which reduce carbon, are community led and create a legacy of low carbon behaviour assets. The Climate Challenge Fund has awarded over 59 million of funding to 676 projects in 498 communities across Scotland since its launch in 2008 and is a grant scheme administered within the Sustainable Action Fund. 20

21 useful information The following table gives links to resources mentioned in this guide: Resource Institute for Transportation and Development Planning (ITDP) Optimising Bike Sharing in European Cities (OBIS) Glasgow HEAT study Guide to using HEAT to calculate economic benefits Local Sustainable Transport Fund (LSTF) Cycle City Ambition funds (CCA) One North Cycling Scotland Climate Challenge Fund Link geid=200&_lngid=17&_catid=9&_countrycode=&_newsid=3296 &_Index=1&pic=7&_CheckSum= nsport-fund -grants n_s_cities_unveil_joint_plan_for_improved_connections anhelp/communities/climatechallengefund 21

22 our private / third sector partners Stirling / Scheme Lead and Funder Our nextbike scheme in Stirling is a fully private partnership funded and lead by Forth Environment Link, a locally based private company that delivers projects that improve the area, with particular interests in the environment and food. As well as nextbike, they also operate Stirling Cycle Hub at Stirling Train Station. From here they encourage cycling and give people free information and help. Stirling / Scheme Maintenance Recyke-a-bike is responsible for maintaining the nextbike scheme in Stirling, including redistributing bikes and carrying out repairs. They are a locally based social enterprise and provide a popular bike re-cycling and up-cycling service. The Bike Station / Glasgow / Scheme Maintenance The Bike Station is our local service partner for nextbike in Glasgow. They have large premises in the city suburbs where they provide bike repair, recycling and reselling services as well as manage and operate the nextbike scheme. With 400 bikes and 31 stations, the operational setup is substantial with round-the-clock service. Belfast / Scheme Supplier and Operator NSL were the successful bidders for a public cycle hire scheme in Belfast. Nextbike is supplying the scheme infrastructure to NSL which is launching in 2015 with 300 bikes. We aim to be flexible in the way we do business and always happy to partner with other organisations to meet varying needs of cities. 22

23 A bicycle ride around the world begins with a single pedal stroke Scott Stoll, around the world cyclist Please give us a call when you re ready to take the first pedal stroke. Turn over for contact details. Thanks for taking the time to read this guide, and good luck if you decide to accept our challenge. 23

24 Nextbike UK Ltd Apollo House 359 Kennington Lane London SE11 5QY Tel: +44 (0) Web: