Public Bike sharing system case study

ZAGSTER
Formerly called CityRyde, founded in Drexel university,
Philadelphia
Headquarters in Massachusetts
Caters to cities, universities, companies, residential communities
and hotels to offer bike sharing to workers, students or guests
(operates 100-150 bike share programs spread over 16 US states).
Venture was funded, no government backing.
Provides bike sharing infrastructure and technology as well as
implementation and operation services
Uses off-the-shelf bike share fleet management software.

Advantages:
1. Use of advanced technology

Extensive use of technology making bike sharing easy and widespread.

good quality of cycles(comfortable, safe, equipped, easy maintenance)

Integrated technology like a secure lock box, a u-lock and tracking chips.

Easily installed docks

Maximum security, minimum space. 3 points of contact including a
wheel well keep bikes organized and upright.

Cycle borrowing easily done via zagster app, website or

through text message thus making it available to all.

Automated Kryptonite locks used locked and unlocked

only via user on app or through text message. Easy to
make stopovers.

Realtime mapping and tracking by use of RFIDs. (radio

frequency identification)

Full access to ridership and usage reporting through an

intuitive online portal. ( app and website both)

ADVANTAGES

1. Tracks the total

amount of carbon
emission avoided by
use of their service on
campus or company
grounds, thus building
a sense of
responsibility among
users towards a
greener planet.
2. Varied pricing,

membership plans, and

eligibility between our
bike sharing programs
making it possible for
anyone and everyone.

3. Flexible payment online

or through a smart card

valid for specified period
of registered members.
(All user information
highly protected and
secure)

4. Cheap and affordable

rides and in some

universities and hotels
even free.

5. More widespread in

smaller communities
and not city wide.

Display of start and destination docking station in app.

DISADVANTAGES
1. No onsite registration or request of cycle is entertained. All processes are online.
2. The hardware are subject to theft and vandalism
3. Do not cater to children below 13
4. Not functional in harsh weathers.

Want to ride? Heres the guide:

Membership model:

Enter all your standard

personal information
and become a member

Choose and reserve a

bike online or walk up to
a bike you want to use

Enter that code into the

lock box installed on
bike

A code is generated
which gets you access to
the bike

Use your mobile phone

by texting or mobile
application to request
the bike by entering the
it's number

Retrieve the key inside

the lock box for the
bikes U-lock

Use the key to open the

U-lock

Sign up online(via
Zagster app or website)

and pedal away!!

Return the cycle to any

other docking station
near yor destinatin.

WORKFLOW - Since it has now reached to a stage where it acts as a

cycle sharing service provider heres how it works:

Determine the distribution of bikes and stations

Choose strategic location

Prepare layout of a marketing and promotional ground plan

Install all cycles, equipment, and docks.

Integrate and update application and website according to the fleet of

cycles including all information of cycles

Sync all additional technical features and payment options+pathways

Market it across audiences and start operating

(Its astonishing how presently if approached, zagster can setup a brand new cycle sharing
program at a new location within a short span of two weeks )

X FACTOR(S)

TECH

PAYMENT

Latest technological
implementations yet
easy and flexible for
users

Payment is hasslefree especially for

members

ALWAYS
AVAILABLE

DENSE
NETWORK

USER
FIRST

COOL

24/7 Rider Support

Dedicated account
managers make sure every
program is successful. Any
glitch while riding or problem
faced online is solved
immediately

Planned networking over the

campus connecting most
travelled parts of it.

This program keeps in

constant touch with its
customers online and
offline focusing on
what the users want

Extremely popular kind

of a cool factor
attached to it

Result:

An improved cycling mode share

Increased public transport usage
Reduced congestion
Improved public health outcome
Greater environmental awareness in community
Improved quality of life
Accessibility to destinations unable to be served by public transit
Improved air quality

An ideal bike sharing system and its aim achieved

Revenue of Zagster
Zagster was funded by around 12 to 15 notable angel and seed investors.
Total Equity Funding
$
8.66M in 10 Rounds from 20 Investors
Most Recent Funding
$
1.5M Venture on January 5, 2016
By 2012, it had raised about $10,00,000 and is still counting.
Estimated revenue is $5 million.
Consistent recurring revenue, no inventory risk.
Its major cost recovery is through user fees and funding.
Since it is well established, it has become a popular bike sharing service provider hence
earnings include tie-ups with universities, residential, companies like GM motors and hotels like
Hyatt and Four seasons, where Zagster sets up and operates cycle share programs.

Funding
(reason: investors
find the idea
potentially
profitable)

Campus,
company, hotel,
etc. tie-ups

Users - one time

or regular
(reason: great
cycling
experience, safe,
affordable)

New
communities that
approach zagster
for expanding
and setting up in
their locations.

What we can learn and adopt?

Technology integration as per need and through small effective stages

Better and prompt online presence(website)

Careful and strategic expansion (first on campus)

Expanding market value and branding

Thinking on lines by keeping user first

Increasing our interaction with user to gain feedback

Approaching investors constantly

A variety of membership and payment options to be made available

according to audience.

(Link to interview of zagster founder:

http://bikeshare.com/2013/08/the-nuts-spokes-with-zagster-ceo-timothy-ericson/)