The Uncertain Future and Huge Potential of ArborBike

Like some 1,000 cities around the world large and small, Ann Arbor jumped into the bike sharing fray back in 2014 with the aptly named ArborBike program.  Now entering its fourth year in operation the initial funding is starting to wind down and the future of the service is uncertain.


Three years in now, most have probably seen the bikes in motion but a quick refresh for the uninitiated: There are 13 stations around town housing 125 bikes, available for rent with a credit card to the general public by the day, the month or the year.  The system is owned and operated by the Clean Energy Coalition in partnership with the Ann Arbor Area Transportation Authority (“AAATA”), University of Michigan and City of Ann Arbor.  They have a website, pretty straightforward really.

The funding and future of the system however, is less straightforward.  The University provided the bulk of the funding for the first three years, committing $200K annually.  For 2017, they have reduced their commitment to $80K, dropping to $40K in 2018.  Other sources, primarily the Downtown Development Authority, City of Ann Arbor and the AAATA, have stepped up their support to fill in the gaps and ArborBike is operationally funded through the 2017 biking season.  Financing for 2018 and beyond is a big question mark but there are some (relatively) simple solutions in sight.

First, it’s important to understand that bike sharing is a form of transit.  Even in places like Chicago or London, most trips are not tourists poking around the sights, they’re residents getting from A to B (or maybe poking around the sites a bit themselves).  As a percentage, fare collection at ArborBike is already on par with other forms of mass transit and can improve with increased ridership.  Second, the system grew organically by 24.57% to 17,675 trips in 2016 according to Sean Reed, Executive Director of the Clean Energy Coalition and head of the service.  That’s with no change in service, bikes or stations.  It’s starting to take hold.  ArborBike needs the proper investment, marketing and partners to not only secure funding but absolutely thrive.  Here are three ways to get the system to take off in 2018.

University/AAATA Partnerships with Shared Passes

The fastest way to boost membership and revenue would be to include the service with the UM student MCard.  There are 44,718 students at the Ann Arbor campus, each is assessed a couple of small semester fees on top of tuition including $4.25 for Student Legal Services, $4.60 for Central Student Government and $32.50 for University Unions & Recreational Sports Improvements.  Adding a few dollars to that last fee and updating the technology so that the MCard could provide immediate access in an integrated system would result in explosive ridership growth and significant operational funding.  The same integration should be established with the AAATA, specifically with GoPass.  GoPass is the DDA sponsored program that offers heavily discounted unlimited use bus passes for employees working downtown, there were 611,353 rides in 2016.  That pass should include ArborBike, again with a unified card system if possible.

Expansion of the System

The system is growing but is limited with the current number and locations of stations.  I’ve covered this previously on the blog, the present stations are virtually all at final destinations.  They’re downtown, dotted around campus and at the hospital.  The problem is that many, I would argue most, people are traveling to those destinations from an area that does not have an ArborBike station.  Namely neighborhoods around town, heavily student areas to the south of campus but all over the core of our city.  Reed believes there is funding for additional infrastructure from the Congestion Mitigation and Air Quality Improvement Program (“CMAQ”) and other sources if operational financing can be secured.  There are also some new examples of stationless bike share that might be an option.  The bikes are equipped with locks and GPS technology that would allow them to be dropped off and picked up anywhere within a certain boundary.  While the bikes themselves are more expensive, it saves money on kiosks and provides for greater flexibility.

Corporate Sponsor/Partner

The final piece of the puzzle is identifying a potential corporate sponsor.  Most of the larger systems are underwritten by an enormous company, think Citi Bike in NYC, Santander Cycles in London (formerly Barclays Cycle) or Biketown in Portland (Nike).  It’s possible that someone local could step in (Bank of Ann ArborBike anyone? they do love to help), the branding and advertising would be excellent but it’s a probably a pretty big check to write.  I think the obvious choice here is the closest Fortune 100 company to Ann Arbor, Ford Motor Company.  If that sounds crazy, you might be surprised to know that Ford is looking far beyond automobiles, embracing new technologies and all forms of mobility in a changing world.  They’re already sponsoring San Francisco’s program, bought crowd-sourced shuttle service Chariot and are opening an office in downtown Ann Arbor.  Seems like a perfect fit.


2017 will be a pivotal year for ArborBike, will the growth continue, will funding be secured, will it survive?  The suggestions above are easily attainable but it will take a number of organizations working together to achieve them.  Sean Reed says the five year goal is 100,000 bike trips and I believe that is absolutely within reach with the right expansion and partnerships.