NYC CitiBike, New York's year-old bike share program, is being crushed by its catastrophic success. As Felix Salmon explains, CitiBike has sold many more annual subscriptions ($95/year) - and far fewer daily passes ($9.95/day) - than expected. The problem is that the business model was built upon the expectation that tourists paying $10/day would subsidize local commuters paying under 30 cents/day. Without the cross-subsidy from the daily passes, the system is going broke.
NYC Citibike's Catastophic Success & Obamacare
NYC Citibike's Catastophic Success …
NYC Citibike's Catastophic Success & Obamacare
NYC CitiBike, New York's year-old bike share program, is being crushed by its catastrophic success. As Felix Salmon explains, CitiBike has sold many more annual subscriptions ($95/year) - and far fewer daily passes ($9.95/day) - than expected. The problem is that the business model was built upon the expectation that tourists paying $10/day would subsidize local commuters paying under 30 cents/day. Without the cross-subsidy from the daily passes, the system is going broke.