Analysis of LimeBike bike share

As discussed in the previous blog, my approach to Bikes 4 Bangalore is to analyze existing systems and learn the various factors that influence or impact their model. This week I analyzed multiple bike share programs. I will discuss one in detail. I am going to discuss San Mateo based LimeBike as it just got $12 million of funding this past week.

Goal:

Their goal is to reduce car traffic in the cities by moving people towards bike sharing.

Customer profile:

LimeBike is targeting the bike share program towards millennials who care about convenience.

Tech:

They use an inbuilt GPS tracking system, an app, QR codes to scan the bike and ID it, and they also gather some user data to improve their system. They do this through 3G connectivity on the bike itself. They also have an onboard solar panel that generates power to run the hardware. There are no dedicated bike docks or special keys. A member can simply find the nearest bike on their smartphone, use it, and park it wherever they want.

Location:

LimeBike does not use nodes/stations to park the bikes. They can be picked up and left anywhere, offering greater flexibility.

Competition:

There are already many bike shares in the Bay Area, for example the Bay Area Bike Share, Citibike, names. They also face resistance from the cities in the form of regulations. Cities like San Francisco require registration and companies are liable for any unattended bikes. Unregistered bikes will also be towed away.

Partners:

The startup is working with various Bay Area biking coalitions and other bike advocacy groups to forge strong relationships with the cycling community.

Product design:

They assemble their own bikes from the parts manufactured by others.They have a basket attached and foam core tires that do not deflate.

Pricing:

Customers pay $1 for every 30 minutes of use.

Costs:

All the tech mentioned can cost the company a lot to both buy and maintain. Manufacturing and assembling the bike parts also costs quite a lot. They do cut some costs by not having a docking station for the bikes, leaving them to the public to take care of them.

GPS, 3G connectivity, solar panels, etc. can add considerably to the costs. Having no docking station might save some money.

Opinion:

They are trying to differentiate themselves in a crowded market: making bikes available everywhere could be the killer punch. The costs could be an issue as they are adding too much high tech gear to the bike which add to the costs and make it more susceptible to theft and vandalism.

Since biker coalitions already have their own bikes, they do not really have an incentive to use the bike share. It is possible that this strategy may not bring paid customers.that are required for commercial success.