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TURF WAR: Victoria bike rental outfits wheelie not down with U-bicycle

CityB次元官网网址檚 allowance for dockless bike share company creates uneven playing field: local operator
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Matt McDonough, an employee of Cycle BC, shines up a scooter outside the rentals companyB次元官网网址檚 Victoria location on Humboldt Street. The businessB次元官网网址 president claims the City of Victoria has given unfair advantages to a competing firm. Kristyn Anthony/ VICTORIA NEWS

The neon green and silver symbols of U-bicycle are all over Victoria streets, and local bike rental companies say thatB次元官网网址檚 exactly the problem.

Doug Turner, president of Cycle BC, a company that rents motorcycles, scooters and bicycles out of a downtown location on Humboldt Street, says revenue is down since the dockless bike share company rolled into town.

B次元官网网址淲e play by the rules and we do what we can to support the local economy,B次元官网网址 says Turner, who feels the CityB次元官网网址檚 allowance of U-bicycle has created B次元官网网址渁n uneven playing fieldB次元官网网址 for the bike rental market.

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While the company may have been intended to appeal to local commuters, he says, itB次元官网网址檚 obvious U-bicycle is now infringing on some of the tourist dollars he and other similar businesses rely on, particularly at this time of year.

Turner expects to see some businesses close by next summer. While U-bicycleB次元官网网址檚 presence in Victoria was slated as a one-year pilot project (it began in September 2017), he says the damage is already done.

B次元官网网址淭he mayor has done a lot of work in Victoria to make it bicycle friendly and for many merchants, itB次元官网网址檚 been a disruption,B次元官网网址 he says.

Turner claims the City gave U-bicycle special treatment B次元官网网址 the mayor and City staffers learned more about the business model and technology during a trade mission to China B次元官网网址 and didnB次元官网网址檛 consult with local businesses offering similar services.

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And, Turner doesnB次元官网网址檛 think U-bicycle is as green an option as it bills itself to be; he says the kind of bike the company uses isnB次元官网网址檛 designed for long-term use and many are discarded.

B次元官网网址淗ere weB次元官网网址檙e charging five cents for plastic bags and stopping using straws, but weB次元官网网址檙e using disposable bikes,B次元官网网址 he says. B次元官网网址淚 donB次元官网网址檛 think itB次元官网网址檚 a particularly green item.B次元官网网址

U-bicycle launched in Sept. 2017 and now operates close to 500 bikes throughout Greater Victoria. Kristyn Anthony/VICTORIA NEWS

When disruptive ideas come, it takes everyone a while to adjust, says Mayor Lisa Helps.

B次元官网网址淲e need to take the concerns of the bike stores fairly and we need to understand the U-bikes are there for a completely different purpose,B次元官网网址 she says, calling U-bicycle a B次元官网网址渇irst mile and last mile solution.B次元官网网址

She cites the example of a transit user who may only need the use of wheels for a 10- or 15-minute cycle home from a bus stop. B次元官网网址淵ouB次元官网网址檙e not going to a bicycle store to rent a bicycle.B次元官网网址

Car share and car rental companies have found a way to co-exist, Helps continues, because they happily fill different niches. B次元官网网址淚f U-bike didnB次元官网网址檛 fill a need, they wouldnB次元官网网址檛 have any customers.B次元官网网址

And, being a pilot project, U-bicycle will come up for review and Helps is open to making changes in order to be sensitive to the needs of the bike shops: B次元官网网址淥ur job as the city is to make sure we regulate businesses fairly.B次元官网网址

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U-bicycle B次元官网网址 a Canadian company founded by three female graduates of Simon Fraser University B次元官网网址 purchased the technology from China and CFO Angel Fu says the business employs six people locally.

The technology itself is U-bicycleB次元官网网址檚 primary overhead cost B次元官网网址 the bikes use a remote GPS system activated by mobile apps B次元官网网址 she explains, and a virtual storefront doesnB次元官网网址檛 come cheap.

B次元官网网址淲e are the first to introduce such a new technology to Victoria and we can understand a lot of people donB次元官网网址檛 understand it,B次元官网网址 she says, adding a comparison of the two business models isnB次元官网网址檛 exactly B次元官网网址渁pples to apples.B次元官网网址

Before launching U-bicycle, Fu and her team consulted with local cyclists and determined bike rental companies were B次元官网网址渘ot there to serve local residents.B次元官网网址

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The target market for U-bicycle is B次元官网网址渁nyone who wishes to use bicycles to get from point A to point B conveniently,B次元官网网址 but Fu says 75 per cent of their active users are local residents.

Roughly 500 bikes make up U-bicycleB次元官网网址檚 fleet across Victoria, Saanich and Esquimalt. Fu says the company operates independently, with no subsidy from the City of Victoria, and shares cycling data from its GPS system with the CityB次元官网网址檚 urban planners.

B次元官网网址淲henever technology can provide a solution to a traditional business model, somebody is going to be upset,B次元官网网址 Fu says. B次元官网网址淲eB次元官网网址檙e open to these discussions, but at the end of the day, weB次元官网网址檙e trying to provide a solution.B次元官网网址

kristyn.anthony@ vicnews.com





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