1. Denver B-cycle: Pricing Models Prepared for NABSA, Master Session 3

2. 24 hour membership vs Pay per half-hour
Denver’s walk-up membership structure:
24 hour membership vs Pay per half-hour
Why did we want to test a different membership structure at our kiosks?
Reduce pricing confusion for first-time users.
Reduce customer service phone calls, s, and the cascade of downstream operational effects.
See if it would increase number of unique users.
Understand the revenue impact to inform whether permanent deployment is financially feasible.
Align our pricing structure with other pay-per-trip modes (Car2go, Uber, etc).

3. 24 hour membership vs Pay per half-hour
Denver’s walk-up membership structure:
24 hour membership vs Pay per half-hour
What is Denver’s context?
Only one membership option can purchased at the kiosk.
6 years using the “24HR membership” model.
77% of kiosk users have a non-Denver ZIP.
75% of total membership revenue comes from walk-up members (includes usage fees).
What did we do?
Replaced our $9/24 hour Walk-up Membership with a Pay per Half-hour Membership, during July and August.

4. Original Kiosk Pricing Decal

5. July Kiosk Pricing Decal

6. August Kiosk Pricing Decal

7. Corresponding Handlebar Pricing Decals
Original
July
August

8. Membership Price Structure
July Results YOY
Metrics
July 2015
Membership Price Structure
$9/24HR
Memberships Sold
8,612
Membership & UF Rev
$ ,099
Unique Users
5,406
Total Trips
17,222
Median Trip Duration
23 mins
Average Trip Duration
44 mins
5406
Denver ZIP
24%
Non-Denver ZIP
76%
July 2016
$7/half hour
8,263
-4%
$ ,961
-5%
4,226
-22%
8,456
-51%
28 mins
22%
49 mins
11%
20%
80%

9. Membership Price Structure
August Results YOY
Metrics
Membership Price Structure
Memberships Sold
Membership & UF Rev
Unique Users
Total Trips
Median Trip Duration
Average Trip Duration
Denver ZIP
Non-Denver ZIP
2015 August
$9/24HR
8,491
$ ,392
5,756
17,163
23 mins
43 mins
5756
23%
77%
2016 August
$4.95/half hour
8,220
-3%
$ 72,032
-36%
4,470
-22%
8,308
-52%
29 mins
26%
47 mins 9%
4470
22%
78%

10. Unanticipated Results
Customer service phone and volume stayed the same.
Some Annual Members frustrated with different kiosk pricing structure.
More walk-up users purchasing 30-day and Flex Memberships with their phone while standing at kiosks.
Appears we capture a certain amount of walk-up riders regardless of the structure and price point (within reason).

11. Thanks! Nick Bohnenkamp Executive Director, Denver B-cycle

12. Progress over time