The article suggests:
"Would it not be a better deal for a city simply to sell its advertising rights for money, and to the highest bidder? With the revenue it could then pay for a bike rental service or any other programs -- and in the end, if possible, have a tidy sum left over. When it comes to package deals like this one, that suspicion always lingers."
The dissection of the two is happening. In Barcelona, JCDecaux provides the advertising while Clear Channel Adshel provides bike-sharing. The same split is happening in Hamburg too where the city will "hold a separate tender process for a bike rental scheme at the beginning of next year."
Friday, November 9, 2007
Free it may be, but is it cheap?
An article in BusinessWeek discusses the success of the bike-sharing concept and where it's been catching on. The author also discusses who provides the service. Bike-sharing is presently dominated by two companies - JCDecaux and Clear Channel Adshel. They have brought bike-sharing to the forefront with success, and for this they should be commended. However, BusinessWeek contends that localities which contract for advertising on public property and get bike-sharing as a "bonus" are really paying for the service.