EMBARQ  India  The  World  Resources  Institute  www.embarqindia.org    

Existing Bicycle Sharing in Indore

 

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Table of Contents Introduction  ...........................................................................................................  3  

Shop  Locations  .......................................................................................................  4  Shops  at  Residential  Areas  .............................................................................................................................  4  Shops  at  Transport  Terminals  ......................................................................................................................  4  

Findings  from  the  Preliminary  Survey  .....................................................................  5  Availability:  ...........................................................................................................................................................  5  Timings:  ..................................................................................................................................................................  5  Tariff:  .......................................................................................................................................................................  5  Financial  Model:  ..................................................................................................................................................  5  Manpower  Requirement:  ................................................................................................................................  6  Summary  ...............................................................................................................  7                                                                

 

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Introduction   Indore  is  one  of  the  fastest  growing  cities  in  the  country  and  has  emerged  as  the  industrial  capital  of  Madhya  Pradesh.  Despite  the  limited  infrastructure  facilities  available  for  the  cyclists  on  the  roads,  a  large  percentage  of  people  use  bicycles  to  commute  to  work  in  Indore.    Bicycles  constitute  20%  of  the  total  trips  in  the  city,   and   many   use  rented  bicycles.    While   conducting   the  survey,   it   was   found  that   most   of   the  renters   are   labourers,  factory   workers,  hawkers,   painters,  masons,   etc.   Traders  coming   from   small  towns   around   Indore  rent   bicycles   to  navigate  the  inner  city  market  areas.      Though   there   are  close   to   2000   bicycle  rental   and   repair  shops   in   the   city,  there   is  no  systematic  setup   for   renting  bicycles,   and   is  limited   to   a   closed  user   group   at   most  locations.   Bicycles  rented   at   a  particular   location  have  to  be  returned  back  at  the  same  place.  Rental  shops  are  limited  to  the  area  where   the   low-­‐income   group   community   exists;   also   some   of   them   are   found  around  transport  terminals,  like  bus  stands  and  railway  stations.    

Figure  1  Preliminary  Bicycle  Sharing  Survey  Location  

 

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Shop Locations Shops at Residential Areas  

Areas   like   Pardesipura,  Patnipura,   Malwa   Mill,   Nanda  Nagar   and   Bhagirathpura   have  many   bicycle   rental   shops.  Preliminary   surveys   indicate  that   most   people   renting  bicycles   are   daily   labourers,  factory   workers,   hawkers,  painters,  masons,  etc.  Vendors  in  this   area   only   give   the   bicycles  to   persons   they   know   or   those  who   are   referred   by   someone  

they  know.  

Shops at Transport Terminals  Apart  from  the  market  areas,  cycle  rental  shops  exist  at  transport  terminals  such  as  the  bus  stand  and  railway  station.    Once  again,  traders  from  around  the  city  form  their  primary  clientele.  Even  in  these  locations,  shopkeepers  give  bicycles  only  to  persons  known  to  them.  A  few  locations,  however,  allow  customers  to  rent  a  bicycle  by  depositing  their  original  identity  card  or  by  depositing  a  refundable  amount  of  Rs.  1500  to  Rs.  2000  against  the  bicycle.  Customers  do  not  have  the  facility  to  return/drop-­‐off  the  bicycle  at  a  location  different  from  where  they  rent.          

Figure  2  Shop  at  Patnipuri  

Figure  3  Cycle  Shop  Near  Bus  Stand  

 

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Findings from the Preliminary Survey    In   the   context   of   AICTSL   being   interested   in   undertaking   a   bicycle-­‐sharing  programme   under   its   umbrella,   EMBARQ   India   has   conducted   a   preliminary  survey   of   about   15   vendors   at   various   locations   in   the   city   (Figure   –   1)   to  understand   the   functioning,   requirements,   revenue   model,   etc.   The   following  sections  present  the  findings  from  this  study.  

Availability From   the   interviews,   it   is   estimated   that   about   2000   bicycle   rental   and   repair  shops   exist   in   the   city  with  primary   concentration  at   the  market   locations   and  transport   terminals.   On   an   average,   60   bicycles   are   available   on   rent   at   each  location.   Interviews   with   the   vendors   have   revealed   that   about   three   to   four  times  in  a  month,  the  demand  for  rentals  exceeds  the  bicycles  they  have  for  rent.  

Timings Bicycle  rental  stores  in  the  city  usually  open  at  7:00am  in  the  morning  and  close  by  9:00pm.  Most  of   the  customers   take  bicycles   in   the  morning  before  9:00am,  which   is   indicative  of   the   fact   that   the  peak  of  bicycle  activity   is  different   from  that   for   the  motor   vehicles.    Most   of   the   vendors/operators   have   been   in   this  business   for   more   than   20   years   and   also   undertake   repair   and   maintanence  activities  to  suppliment  their  income  from  bicycle  rentals.  

Tariff Almost  all  the  vendors  offer  bicycles  for  rent  on  hourly,  daily  and  monthly  basis.  However,   most   of   the   cyclists   rent   the   bicycles   on   a   daily   basis.   The   tariff   on  rental   of   new   and   old   bicycles   is   usually   different.   A   cycle   once   bought   is  considered  new  for  at  least  6  months.      The  typical  rental  tariff  structure  is  shown  in  table  –  1    

Table  –  1:  Fare  Structure  Time  Period   Old  Cycle   New  Cycle  Hourly   2   3  12  Hrs   10   15  24  Hrs   15   20  Monthly   450   600  

 

Financial Model The  bicycle  shops  are  split  evenly  among  those  operated  from  rented  premises  and  those  that  are  owned.  In  case  of  rented  premises,  the  average  amount  paid  monthly  is  about  Rs.  1,500.  The  vendors  own  all  the  bicycles  that  they  offer  for    

 

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 sharing.   The   cost   of   a   new   bicycle   is   about   Rs.   3,500.   On   an   average,   a   single  bicycle  offered  for  sharing  generates  revenue  of  Rs.  235  per  month.  Apart  from      rentals,   these   stores   also   undertake   repair   and  maintenance   of   bicycles  which  result   in   a   revenue   of   about   Rs.   3,000   per  month,   which   if   averaged   over   the  bicycles   will   be   about   Rs.   50   per   bicycle   per   month.   The   vendors   incur   an  expenditure  of  about  Rs.100  per  bicycle  per  month  for  spares  and  maintenance  of   their   bicycles   as   well   as   the   repair   work   they   undertake.   This   expenditure  does  not  include  salaries  to  the  labour,  if  they  employ  any.  Hence,  as  a  result,  net  earning  for  the  vendors  is  about  Rs.  180  per  bicycle  per  month.    

Manpower Requirement From   the   preliminary   sample   survey,   it   has   been   observed   that   on   an   average  one  person  is  required  for  operating  and  maintaining  of  30  bicycles.  This  implies  that  the  current  bicycle  sharing  mechanism  results  in  earnings  of  about  Rs.  5,400  per  employee/vendor.      A  summary  of  this  computation  is  presented  in  table  –  2.    

Table  2  Survey  Findings  Findings    Estimated   number   of   cycle   rental   and   repair  shops  

2000  

Average  Number  of  Cycles  per  Shop   60  Average  Returns  on  Bicycle  Rental   Rs  235/month/bicycle  Average  Revenue  From  Bicycle  Repair:   Rs  3000/month  Average  Expenditure  Incurred  By  Stores:   Rs.  100/months  Expected  Revenue  From  The  Program   Rs.  180/bicycle/months  Minimum  Labour  Requirement:   1   person   for   every   30  

bicycles                            

 

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Summary  Based   on   the   study,   the   planned   bicycle-­‐sharing   programme   presents   the  following  opportunities  and  major  challenges.    Strong Points

• Bicycles  offer  very  low  cost  flexible  travel  option  compared  to  other  modes  for  short  distance  travel.  

• Environmentally  friendly  transport,  promotes  good  health,  and  low  recurring  costs.  • Promotes  democratic  utilisation  of  road  space.  

Opportunities • The  existing  sharing  facilities  are  all   tuned/focused  towards   low-­‐income  

groups,   thus   leaving   out   a   large   part   of   the   society.   Thus   the   bicycle-­‐sharing   programme  mooted   by   AICTSL   will   not   be   competing   with   the  existing  system  for  customers.  

• The  current  system  does  not  allow  for  customers  to  drop-­‐off  bicycles  at  a  different  location  from  the  one  where  they  rent.  This  is  a  unique  feature  that  AICTSL   can   incorporate,   thus   creating   demand   for   the   program   for  recreational  and  miscellaneous  purposes  of  the  middle  and  higher  income  groups.  

• The  bicycle  sharing  centres   located  strategically  with  wide  coverage  can  serve   as   a   feeder   to   the   BRT,   thus   increasing   the   accessibility   to   the  system.  

• New   housing   complexes   and   high   rise   building   coming   up   can   make  bicycle  sharing  programs  part  of  their  development.    

Major Challenges • Providing   adequate   infrastructure   for   comfortable   travel   experience   of  

the  bicycle  users   is  a  major  challenge,  which   lies  outside  the  outside  the  scope   of   AICTSL.   Hence,   it   becomes   important   for   AICTSL   to   champion  this  cause  and  co-­‐ordinate  with  political  and  administrative  heads  of  the  city.  

• Security   of   the   bicycles   rented   to   unknown   clientele   is   a   challenge.  Requiring   membership   of   some   sort   or   a   deposit   for   renting   will  significantly   reduce   demand   and   also   prevent   spontaneous   choice  making.    

• Stolen  bicycles  are  very  difficult  to  locate  and  support  from  police  is  very  limited.  

 

 

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 • The  bicycle  has   to  be  designed   to   limit   the  number  of  parts   that   can  be  

stolen/replaced  by  inferior  parts  by  the  customers.  • The  demand   for  bicycles  will  vary  significantly  by   the  season,  with   least  

demand  during  the  monsoons.  Hence,  the  financial  model  for  the  program  should  account  for  this  condition.