Wednesday, January 7, 2015

What we didn't consider: No reason to renew in November if you're not a cold-weather rider

Update: A contributor on reddit reminds us that if you know you're not much of a winter rider, why waste three or four month's time by renewing in November? By that reasoning, the March numbers should show a nice bounce.

And our November-to-November comparison is diminished because we neglected to take into account that in November 2013 renewals weren't a factor. We apologize for that.

We have removed our posts at reddit and twitter.

Original post: November was the first month that Citi Bike collected $149 for an annual membership -- a 50% increase from the old price -- and we fully expected a big spike in revenues. Instead, November vs. November revenue from members was up just 6% from last year, at $183K vs.  $172K.

November’s gross revenue before sponsorships -- that’s revenue from members, pass purchasers and penalty fees -- actually decreased by 20 percent -- to $360K from $452K.

While the signup of new members is tracking closely to the pattern established in 2013, existing members aren’t renewing at a rate sufficient to keep membership growing.

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