A sponsorship deal from Lyft, which owns the bike share provider Motivate, would expand Divvy bike service to every ward in Chicago.
The new Divvy contract may dramatically increase the reach of the service. "Under the proposed amendment, Lyft would expand the system to all 50 wards by 2021, adding 10,500 bikes and 175 stations. That would bring the total to about 16,500 bikes and 800 stations," writes John Greenfield. To achieve the expansion, Lyft would make a financial investment of $50 million. Currently, Divvy service is available in the city center and many, but not all, of the city's neighborhoods, meaning riders cannot drop of bikes in all of the city’s neighborhoods.
Beyond the expansion of service, the deal would also restructure the financial aspects of the service. "Additionally, the city asserts, the amendment would restructure the financial terms of the contract to 'dramatically' increase annual guaranteed revenues and reduce financial risk to the city," Greenfield reports. Divvy profits would go back to Divvy and the city would be paid an agreed-upon rate each year, and in exchange the city would receive a fixed amount of funding that it could budget against.
FULL STORY: Lyft May Spend $50M to Expand Divvy to All Wards, Using Dockless-Option eBikes
Lyft to Buy Motivate, One of America's Largest Bike Share Providers
Motivate operates Ford Gobike in the Bay Area, Citi Bike in New York and Divvy in Chicago among other bike share fleets.
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Chicago Bike Share Expands Citywide
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