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Opera&onal Issue: Proper Balancing and Distribu4on of Bicycles during peak usage 4mes Jamie Graziano, Dawn Markovics, Shyam Vijayaraghavan , Prabhdeep Saimbhi, Jeremy S. Pomp

Capital Bikeshare: Presentation, Managing & Balancing Capacity to Increase Customer Satisfaction

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Capital Bikeshare (CBS) is a self‐service public bike rental program in Washington, DC and Arlington, VA funded by several government entities such as Federal Highways Administration and Crystal City Business Improvement District. Within 2 months of its existence it has grown tomore than 5000 customers and finds itself in a tricky situation of managing capacity at its most frequented sites.

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Page 1: Capital Bikeshare: Presentation, Managing & Balancing Capacity to Increase Customer Satisfaction

Opera&onalIssue:ProperBalancingandDistribu4onofBicyclesduring

peakusage4mes

JamieGraziano,DawnMarkovics,ShyamVijayaraghavan,PrabhdeepSaimbhi,JeremyS.Pomp

Page 2: Capital Bikeshare: Presentation, Managing & Balancing Capacity to Increase Customer Satisfaction

Background AboutCBS TheProblem Analysis Implementa4on

HistoryofBicycleSharingSystems

1960’s

1974

1995

2008

2010

‐EarliestcommunitybicycleprograminAmsterdam‐Withinamonth,mostofthebikeshadbeenstolenandtherestwerefoundinnearbycanals

‐ LaRochelle,Francelaunchedafreebikeprogram‐ Regardedasoneofthefirstsuccessfulbikesharingprograms.

‐ Copenhagen’sByCyklen,wasthefirstlarge‐scaleurbancitybikeshareprogramfeaturingspecially‐

designedbikes

‐ WashingtonDC’sfirstbikeshareprogram,DCSmartBikeswaslaunched

‐ CapitalBikeshare(CBS)replacedDCSmartBikes‐ Whencomplete,CBSwillbetheworldlargestbikesharenetwork.

Page 3: Capital Bikeshare: Presentation, Managing & Balancing Capacity to Increase Customer Satisfaction

Background AboutCBS TheProblem Analysis Implementa4on

CapitalBikeshareCompanyProfile

Facts&Numbers‐4,800annualmembers&400monthly

‐LargestbikesharingserviceintheU.S.

‐1,100bicyclesand110Sta4ons

Opera&ons‐BeganSeptember20,2010

‐Bicycledistribu4onmanagedbyAlta

‐Rou4nebicyclemaintenance

System‐SolarPoweredandWirelesslyconnectedsta4ons

‐RealTimeSmartphoneapp

‐BixiissupplierofbikeSta4on

‐Installa4oncosts=$6.8M

Bikes‐3gears

‐Twinredtaillights

‐Strobe‐likeheadlights

‐Alllightspoweredbyfric4on

Page 4: Capital Bikeshare: Presentation, Managing & Balancing Capacity to Increase Customer Satisfaction

24‐hour $5

30‐day $25

Annual $75

0‐30minutes FREE

31‐60minutes +$1.50

61‐90minutes +$3.00

Eachaddi4onal30minutes

+$6.00

MembershipFee UsageFees

Background AboutCBS TheProblem Analysis Implementa4on

Pricing

Page 5: Capital Bikeshare: Presentation, Managing & Balancing Capacity to Increase Customer Satisfaction

Background AboutCBS TheProblem Analysis Implementa4on

ProblemStatement

Flowoftrafficisuneven,causinganimbalanceinthenumberofbicyclesacrossvarioussta&ons.Thishasanega&veimpactoncustomersa&sfac&on.

Page 6: Capital Bikeshare: Presentation, Managing & Balancing Capacity to Increase Customer Satisfaction

AnalysisShouldTakePlaceonaBlock‐by‐BlockBasistodetermineOverandUnderU4lizedSta4ons

A

B

C

D

E

F

G

H

I

1 2 3 4 5 6 7 8

J

K

PreliminaryFindingsIndicatethatBlocksE3,E4andF3mayhavetheworstdemandcyclefluctua>ons

Background AboutCBS TheProblem Analysis Implementa4on

Page 7: Capital Bikeshare: Presentation, Managing & Balancing Capacity to Increase Customer Satisfaction

F

3

Background AboutCBS TheProblem Analysis Implementa4on

InBlockF3,BikeUsageDatafor3DaysinOctoberWasAvailableforAnalysisfor3Sta4ons

3Sta>ons• 19th&ESt.NW

• 20th&ESt.NW

• VirginiaAve.&21stNW

Page 8: Capital Bikeshare: Presentation, Managing & Balancing Capacity to Increase Customer Satisfaction

Background AboutCBS TheProblem Analysis Implementa4on

AnalysisShouldTakePlaceonaBlock‐by‐BlockBasistodetermineOverandUnderU4lizedSta4ons

…MeanwhileTheBikeSta>onat20th&EStreetisOnlyat40%CapacityDuringPeakHours

TheBikeSta>onatVirginiaAveand21stStreetReachesCapacityinwhatappearstobeacyclicalbasis…

0

2

4

6

8

10

Num

berofBicycles

VirginiaAve&21stStreetBicycleUsage(Capacity=11)

0

5

10

15

Num

berofBicycles

20th&EStreetNWBicycleUsage(Capacity=15)

Page 9: Capital Bikeshare: Presentation, Managing & Balancing Capacity to Increase Customer Satisfaction

F

3Certainblocks(andsta>onswithinthoseblocks)experiencevaryingdegreesofu>liza>onRates.

Background AboutCBS TheProblem Analysis Implementa4on

WhileVirginiaAveAppearstoReachMaximumCapacityonaCyclicalBasis,ASta4on3BlocksAwayHasExcessCapacity

CurrentMeasuresinPlaceRelySolelyon4TruckstoRedistributeBikesThroughouttheCity(Opera>ng12HoursperDay/6DaysPerWeek)

Page 10: Capital Bikeshare: Presentation, Managing & Balancing Capacity to Increase Customer Satisfaction

Solu&on Tac&c Constraints Ancillarybenefits/costs

SRViability?

AddCapacity Increaseexis4ng,MannedSta4on,Mobilesta4on

Capital,Labor,Land,R&D,Time

Lowercapacityu4liza4on

N

ShortenSupplyChain

Maintenance/corralroomsdowntown

Capital,Overhead,Time

Lowercapacityu4liza4on,overcomestraffic

N

Subcontract Formal(Busorbikemessengers),Informal(opportunists)

Qualitycontrol,Infrastructure,Marginalcosts

Inconsistent,trafficissues

N

Incen4ves(A) “credits”forunpopularroutes

Solware,Marginalcosts,Liveanalysis

Revenuereduc4on,Inconsistent

Y

Incen4ves(B) Live/Real‐TimePointssystem

Liveanalysis,solwareorlabor

AdRevenuefromCorp.Sponsors,Inconsistent

Y

Background AboutCBS TheProblem Analysis Implementa4on

ByImplemen4ngaLivePointsSystem,CapitalBikeshareCanDiffuseCapacityConstraintsAcrossSta4ons

Page 11: Capital Bikeshare: Presentation, Managing & Balancing Capacity to Increase Customer Satisfaction

Background TheProblem Analysis Conclusion Implementa4on

RealTimePointsSystem:1)DiffuseCapacityConstraints2)IncreaseCustomerSa4sfac4on3)IncreaseRevenue

Points Gil AdRevenue

100 $20 $20

200 $50 $50

300 $75 $75

400 $125 $125

rewardpoints

Page 12: Capital Bikeshare: Presentation, Managing & Balancing Capacity to Increase Customer Satisfaction

Thankyou!

• ChrisEatough,BikeArlingtonProgramManager• EuanFisk,AltaBicycleShare• LanceSchine,ChiefInforma4onOfficer,DistrictDepartmentofTransporta4on• ScoWKubly,DirectorofProgressiveTransporta4onServicesAdministra4on,DistrictDepartmentofTransporta4on

Page 13: Capital Bikeshare: Presentation, Managing & Balancing Capacity to Increase Customer Satisfaction

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