Reports of Vélib’s Demise Greatly Exaggerated
JCDecaux touted Vélib on the cover of its 2007 annual report [PDF].So is Vélib destined to burn brightly only to flare out after a short time? Hardly. Vélib is here to stay, according to officials and transportation experts familiar with the details of its operations. The BBC's portrayal of a mortal threat, they say, is best understood as a negotiating ploy on the part of JCDecaux. (Note that the JCDecaux representative is the only source quoted in that story.)
"Decaux is using media sensationalism in order to obtain more money from the city of Paris," said Denis Baupin, who as Deputy Mayor for Transportation oversaw the Vélib launch in the summer of 2007.
The basic structure of the Vélib contract works like this. JCDecaux runs the whole system in exchange for the rights to 1,600 outdoor displays, turning its profit from selling that ad space. The city of Paris keeps the revenue from Vélib user fees, so it can claim to provide the service at no taxpayer expense. Now, with the full Paris network of 20,600 bicycles and 1,451 stations completed, penalties for inadequate maintenance are in the process of taking effect. Hence the hue and cry from JCDecaux.
"It's in large part a PR issue," says Luc Nadal of the Institute for Transportation and Development Policy. Some aspects of the Vélib contract are still in flux, and the sky-is-falling press coverage gives JCDecaux a stronger hand in those negotiations. "Their bargaining position depends on the public's perception."
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