Item - 2023.PA2.4
- This item was considered by Toronto Parking Authority on March 3, 2023 and was adopted with amendments.
PA2.4 - Modernizing Bike Share Toronto Rate Structure
- Decision Type:
The Board of Directors of Toronto Parking Authority recommends that:
1. City Council approve (as required by Section 441-11 of Chapter 441, Fees and Charges, of the City of Toronto Municipal Code) the following adjustments (excluding Harmonized Sales Tax) to the Bike Share Toronto program rate structure to take effect April 3, 2023:
a. annual 30 Membership Fee of $105.00;
b. annual 45 Membership Fee of $120.00;
c. annual Membership Overage Fee charges of $0.12 per minute exceeding the user’s selected Annual Membership limit;
d. annual Members E-bike per minute charge of $0.10;
e. casual customer Iconic bike per minute charge of $1.00 unlock fee + $0.12 per minute;
f. casual customer E-bike per minute charge of $1.00 unlock fee + $0.20 per minute;
g. a 90-minute Iconic bike day pass (24h) of $15.00 +$0.12 for each additional minute; and
h. annual Bike Share Toronto Low-Income Program Membership Fee of $5.00.
Decision Advice and Other Information
The Board of Directors of Toronto Parking Authority:
1. Authorized, subject to the appropriate approvals of the City of Toronto that may be required, the President, Toronto Parking Authority, to negotiate and execute such documentation for the use of City of Toronto staff and associate resources assigned to the Social Development, Finance and Administration Division to develop and implement the Bike Share Toronto Low-Income Program in the form and content as may be acceptable to the President, Toronto Parking Authority, and in a form satisfactory to the City Solicitor.
Bike Share Toronto is a convenient, affordable and sustainable mobility option that has emerged as an integral component of Toronto’s transportation network. Since its inception in 2011, the program has seen tremendous success, growing from a system of 80 stations and annual ridership of 400,000 to one of North America's largest bike share systems with a network of over 680 stations, 7100 bikes (including 525 e-bikes) and ridership of 4.6 Million in 2022.
Toronto Parking Authority aspires to make Bike Share Toronto the premiere bike sharing system in the world. Management's Bike Share Growth Strategy will deliver a significant expansion to all 25 Wards including electrification of 20 + percent of the fleet. These programmes are designed to elevate customer satisfaction, drive geographic breadth, improve customer accessibility, and deliver a strong platform for sustainable growth over the long term.
Bike Share Toronto's success to date can be attributed in large part to management's focus on delivering a consistent, reliable customer experience for each and every ride. These efforts were rewarded by securing our best ever customer satisfaction score of 92 percent during our peak summer season in 2022.
However, as Bike Share continues to enjoy double-digit ridership growth, our operating performance is beginning to be stressed reflecting market place demand exceeding supply-particularly during peak operating hours. This traffic drove a 19.4 percent increase in programme expenses in 2022 exacerbated by inflation, investments in frontline resources and more-costly E-bike operations. Failure to address the imbalance between volume growth and cost pressures will degrade key operating metrics and ultimately undermine customer experience.
In order to address this material risk and ensure the sustainable growth of the programme, management is recommending modest changes to its rate structure, which has been unchanged since 2017 despite the programme tripling in size.
This report provides an update on Bike Share's rate structure review, including an overview of the research methodology used to develop recommendations for a new and modernized Bike Share Toronto rate structure, that, if approved, will take effect on April 3, 2023.
(February 16, 2023) Report from the President, Toronto Parking Authority on Modernizing Bike Share Toronto Rate Structure
(February 28, 2023) E-mail from George Bell (PA.Supp)
(March 1, 2023) E-mail from Marc Woodhouse (PA.Supp)
(March 2, 2023) Letter from Alison Stewart, Cycle Toronto (PA.Supp)
That consideration of the item be deferred until the April 21, 2023 meeting of the Board of Directors of Toronto Parking Authority for further study, including a review of implications of the per-minute overage charge proposal.
1. The Board of Directors of Toronto Parking Authority delete Part c of Recommendation 1:
Recommendation to be deleted:
1.c. annual Membership Overage Fee charges of $4.00 for every additional 30 minutes.
and replace with the following new Recommendation:
1.c. annual Membership Overage Fee charges of $0.12 per minute exceeding the user’s selected Annual Membership limit.