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Citi Bike rental rates will increase for both members and nonmembers; the company blames high overhead due to the logistics of recharging.
Citi Bike’s e-bikes provide a great alternative to buying an e-bike for those who live in New York, but they are about to get a bit more expensive due to a new price increase. The convenience of a Citi Bike is considerable: Citi Bike riders don’t have to worry about security, range or charging.
Citi Bike has already imposed one rate increase this year, taking the cost up to $0.20/minute and now the rate will increase by another 20 percent, to $0.24/minute. That’s the cost for members who pay an annual membership fee of $199/year (Lyft Pink) or $219.99/year (Citi Bike). For those who aren’t members, the cost will also rise by 20 percent, from $0.30/minute to $0.36/minute.
Citi Bike blames the price increases on high overhead due to the fact that the docks do not charge the e-bikes. When a Citi Bike’s battery runs low, it must be picked up by staff, driven to a warehouse where it is charged, and then returned to a dock.
Battery swapping would seem to alleviate this issue, but Citi Bike says that battery swapping has proven to be more expensive than anticipated.
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While $0.24/minute isn’t much money, as all incremental costs do, it adds up. Combine a $200/year membership cost with $2.40 for a 10-minute ride and anyone who uses a Citi Bike to commute to and from work 150 days per year starts to close in on the cost of some of the budget-conscious e-bikes.
As is the case with many costs, a slightly higher incremental price can be preferable to bearing the entire investment to buy a new e-bike. So even if someone’s annual spend with Citi Bike exceeds the cost of a new e-bike thanks to daily or near-daily riding, the convenience of paying only a bit per day and knowing you don’t have to worry about charging or someone trying to steal your e-bike is likely to keep riders turning to Citi Bike for their service.
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