The outdoor advertising group that operates the bicycle rental program in Paris says vandalism and the cost of spare parts is cutting into its margins.
The JC Decaux company's deal with Paris calls for it to provide and maintain 20,000 public bicycles in return for outdoor advertising space around France's capital.
The program is extremely successful, with 100,000-some rentals daily. However, Decaux spent about $32 million in the first half of the year to maintain the program because of vandalism and spare parts.
The Decaux CEO told the Financial Times:
“The cost of running 20,000 bikes is a bit more than expected. [Bike schemes] have become a competitive tool to win new contracts or renew contracts. In most European tenders, the bicycle is a part of it.”
A similar program in Washington DC operated by ClearChannel has run into many delays, even though its scope is far smaller than Decaux's in Paris. Originally slated to begin in the spring, SmartBikeDC has yet to launch.
It's supposed to start with 120 bicycles at 10 locations around the city.
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