Last week, just as people were putting the last-minute touches on their Fourth of July getaways, it came to light that Alta Bicycle Share could be entering a deal that opens the possibility of an increase in its individual bike-shares’ usage fees. This has big implications for Boston, Brookline, Cambridge and Somerville because Alta owns ever-popular transit service Hubway.
According to Capital New York, New York City Mayor Bill de Blasio is tentatively considering a deal between the city, Alta and REQX Ventures – the investment arm of Related Companies, which owns the fitness firm Equinox – that would relinquish the majority stake of Alta to REQX.
Because of the existing partnership between Alta’s properties and the cities in which they operate, a general consensus between each party is needed to fluctuate prices. What’s significant about this deal is that, as Capital New York notes, “REQX would have the freedom to raise rates without city approval.”
It’s important to note that the context of a possible price increase centers around New York City more so than any of Alta’s other locations such as Boston, Washington D.C. and Chicago, to name a few.
Given the tumultuous weather that’s rocked New York City and much of the Eastern seaboard during the last couple of years – looking at you, Hurricane Sandy – bike-share ridership pertaining specifically to New York is on the rebound. Capital New York suggests that by brokering a deal, new software could lead to a surge in both ridership and membership.
The latest available data from Citi Bike, Alta’s Big Apple operator, though, indicates that perhaps things aren’t so bad after all. Cumulative trips have risen on a consistent basis since launch, even when taking weather into account.
BostInno reached out to the City of Boston, which is a Hubway partner, for information that’s more specific to the Greater Boston Area. As it turns out, the risk of Hubway increasing their fees are low at this time.
“The City engages with a number of vendors, and those businesses often undergo changes,” Gabrielle Farrell, a spokesperson for the City of Boston, told me in an email. “At this time, we don’t anticipate any immediate changes in the City’s Hubway service.”
Divvy, Chicago’s version of Hubway which is also owned by Alta and the city, doesn’t anticipate any imminent price changes, if at all.
Elliot Greenberger, Divvy’s general manager, confirmed to BostInno in an email that “There haven’t been any recent discussions to raise rates here in Chicago.”
But even if there was some kind of majority buyout, Greenberger noted, a consultation with Divvy’s remaining partners would be mandate for a cost boost. Why this would be any different in New York City, as per Capital New York’s account, remains unclear.
Capital Bikeshare, Alta’s property in the District of Columbia, which is owned in part by D.C.; Arlington County, Va.; Alexandria, Va.; and Montgomery County, Md., is in the same boat as Boston and Chicago.
“There’s nothing about a change of ownership of our contractor that should impact what we charge users,” District Department of Transportation spokesperson Michelle B. Phipps-Evans relayed to BostInno in an email.
BostInno also reached out to directly to Hubway and Alta Bicycle Shares, but neither were immediately available to comment.
It seems at this point there might be a deal in the works that could potentially involve Citi Bank as the sole bike-share program, rather than the entirety of Alta’s fleet. But even if that isn’t the case, and all of Alta’s subsidiaries are to be involved, they aren’t interested in talking about it at this time.
In fact, nobody denied the possibility of a price increase. Sources noted only that there are no talks about such a move at this time.
Stay tuned to BostInno, though. If it comes to light that Hubway is, in fact, involved in some kind of quasi-acquisition, we’ll be sure to keep you informed with the latest information.
Image via Shutterstock
