The Daily Parker

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Divvy income falls as rides and service area increase

Chicago's take of Divvy bike-share income was 31% lower in 2016 than in 2014 and 2015 as the city expanded the program into the South and West sides:

Divvy income fell from $2.86 million in 2014 and $2.84 million in 2015 to $1.97 million in 2016, a 31 percent drop, according to the city Department of Transportation figures. The city said it is improving its outreach to get more people to try Divvy and expects its income for the program to be about as high this year as in 2015.

Transportation officials said the expansion to black and Latino neighborhoods on the South and West sides was an attempt to increase diversity in a program that was launched four years ago in mainly white, affluent neighborhoods. But the South and West sides pose challenges to Divvy because they tend to be less affluent and have more impediments to biking, such as fewer bike lanes, cycling advocates say.

The city makes the bulk of its Divvy income from station advertising and Blue Cross and Blue Shield’s sponsorship. In three of the past four years, it lost money on bike rental operations. After a small profit of $45,859 on 2015 operations, it lost $752,011 on operations in 2016 — its share of a total operational loss of $1,756,420 shared with Motivate and the biggest loss in the program’s history.

The differences between neighborhoods are stark. In the low-income West Side neighborhood of Austin, for example, there are 14 Divvy stations that saw a total of 1,339 trips from July 1, 2016, through June 30, 2017. Affluent lake-bordering Lincoln Park, by contrast, has 36 stations that saw 452,727 trips during that time period.

The DePaul study said high unemployment rates reduce ridership because the system’s main function is to serve work commuters. It also noted that areas with more kids and seniors also see less Divvy ridership. Divvy is not for children under age 16.

The program remains exceptionally popular near me. One of my friends, who lives near Wrigley field, has taken almost 365 Divvy rides this year. But as the you get farther from the Loop, the bike share looks less attractive. (Ever try to ride one of those behemoths 15 kilometers in less than 30 minutes?)

I'm glad the city and Federal government are subsidizing the program as a mass-transit program. Mayor Rahm Emanuel famously said that "Divvy is a bigger threat to cabs than Uber," and he's probably not wrong (depending on how you measure things).

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