Mayor Boris Johnson is spending 140 million pounds ($218 million) to encourage more Londoners to get on two wheels with a cycle-hire program that sprinkles the capital with as many as 5,000 bikes starting today.
The initiative, funded by Transport for London, sponsored by Barclays Plc and operated by Serco Plc, could lose as much as 5 million pounds a year, according to Kulveer Ranger, Johnson’s transport adviser. At best, it will break even as subscribers pay six pounds for a two-hour rental or 50 pounds for a full day. The first 30 minutes, though, are free.
“I think we’ve got to be realistic,” Johnson, who pedals to his Tower Bridge office, said in an interview with Bloomberg Television. “It’ll be a while before it makes money for the taxpayer. The objective is to give Londoners a clean, green alternative, particularly for short journeys where they might think of using cars, which I think is crazy.”
Barcelona, Paris and Brussels are among European cities that have introduced public cycle-rental systems. France’s “Velib” program, combining the words for bicycle and freedom, was an instant hit in July 2007 with 1 million customers after 18 days. About a third of the 24,000 bikes installed, though, have been stolen, with thousands more damaged.
http://www.bloomberg.com/news/2010-07-29/london-mayor-risks-7-8-million-a-year-to-promote-bicycle-rental-program.html
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