Thursday, January 22, 2015

Member revenue drops below 2013 level for first time

Revenue from new and renewing annual members dropped below 2013 levels for the first time in December. The drop was substantial -- 24 percent to $89,000. And that’s with the 50 percent rate increase in place.
We suspect that many members who signed up last winter found they didn’t get much use out of the system in the brutal cold and are waiting until March to renew. A darker explanation might be that the rate increase, combined with the frustration caused by NotSpots and Dock Lock, is chasing people away. Guess time will tell.

For the second straight month, gross revenue from all riders -- members and pass purchasers -- declined from last year’s levels. Revenue from riders ran 32 percent behind December 2013. In November, it ran 20 percent behind.

Citi Bike annual membership declined slightly for the third straight month. Dember ran eight percent behind December 2013, the widest gap so far. The 702 signups are the lowest monthly figure yet recorded.

Total pass purchases -- 1-day and 7-day -- hit an historic low in December of $6808. In no comparable month in 2014 did pass riders exceed 2013 levels.

Source: NYC Bike Share monthly reports

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