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Organizational Structure of Biki

In standard bikeshare practice, a city uses tax payer dollars to purchase bikeshare equipment and hire a for-profit operator to run the system on their behalf. Based on the 2014 Feasibility Study commissioned by the City’s Dept. of Planning and Permitting, it was recommended that Honolulu instead set up an Administrative non-profit to minimize public sector risk and create opportunity for support from the private sector. As a result, Biki is a public/private/non-profit partnership that is managed by Bikeshare Hawaii (non-profit), operated by Secure Bike Share (private) and in partnership with the City and County of Honolulu and the State of Hawaii.

 

This page provides information about funding/investment, initial objectives, primary functions and revenue share, and the reasons as to why this unique structure was selected for Honolulu. 

Organizational Structure of Biki

Download as PDF: Biki Organizational Structure

How does Honolulu compare to other bikeshare cities?

Traditional Model

  • Using tax payer dollars, the city buys the bikeshare equipment.
  • Also using tax payer dollars, the city hires a for-profit operator to run the system for them.
  • Similar to TheBus.
  • Cost to the City: All equipment, all ongoing operating costs, any lost parking revenue.

Honolulu Model

  • The city helps start up a non-profit to set up the system and manage an operator.
  • The non-profit plans to sustain itself through grants, donations and fare revenues.
  • The for-profit operator receives fare revenue to help offset operations and equipment financing costs.
  • Cost to the City: Initial startup funds and lost parking revenue.

Why was this model selected?

The selection of Biki’s administrative non-profit structure was based upon the recommendation provided in the June 2014 Honolulu Bikeshare Organizational Study, funded and commissioned by the City and County of Honolulu. The complete study is available online.

 

The administrative non-profit was the recommended organizational type due to minimal public sector risk, ability to attract private support, and ability to expand operations to lower demand neighborhoods and, eventually, other counties.

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