Bike Sharing Boosts Property Value

As reported by several outlets (including here and here) the Bubi bike share system has recently been expanded  by 22 new docking stations, bringing the total number of locations to more than 90.

Most of this  expansion was thanks to a contract penalty that BKK enforced against the technical supplier led by ICT company T-Systems Hungary: Due to the delayed rollout of Bubi in spring of last year, the T-Systems consortia had to compensate BKK with HUF 180 million (EUR 589,000).  Rather than paying cash, the providers agreed with BKK to add the new docking stations instead.

But that doesn't account for 100 percent of the expansion. One of the new stations, specifically the one at Corvin Sétány housing and shopping development, was financed by the property's owner. As such, it becomes the first Bubi docking station to be paid for with private money.

This represents a new possibility for system expansion, and a new opportunity for business people interested in the cyclist market. Bubi will install a docking station on your property for a fee, and will take care of its operation and maintenance thereafter. A large station such as the one at Corvin Sétány, with spaces for 30 bikes, along with a rental terminal capable of selling tickets with a chip card reader, is yours for HUF 6.83 million (EUR 21,700). After signing on the dotted line,  the station will be installed in seven to eight months.

Why would someone shell out for such a price? According to János Berki, who headed the Corvin Corvin Sétány project for Futureal, a key consideration for the whole Corvin project was sustainability, with an accent on people and livability. This naturally included cycling facilities, including ample bike racks and changing rooms and showers for office spaces.

Berki didn't mention the docking station's impact on property value, but this may well have been an ulterior motive. According to new research, proximity to public bike sharing stations postively impacts on residential property value. The study, focusing on Montreal, Quebec, showed that for every single bike-share station located in a neighborhood,

"... $700 in property value is added to surrounding houses. Considering that, in Montreal, homes in a bike-sharing friendly neighborhood are, on average, within range of just over 12 stations, the value grows by almost $9,000; that's a 2.7 percent increase in sale value solely by virtue of living near a bike-sharing system."

This makes sense to me. Public bikes not only make a neighbourhood more accessible to more people, they contribute to its appeal as a fashionable, modern quarter.

Meanwhile in Dopeville ... the blog kerekagy recently reported on a "Facebook protest" among regulars of the Matyas Pince, a restaurant at Marcius 5 ter that specialises in traditional Hungarian fare. A Bubi docking station was placed in front of the eatery's entrance, provoking complaints about how it detracted from the historic elegance of the place. Realising that the Matyas Pince menu would of course be heavy on pork, this is very much a case of pearls before swine.

Bubi to be enhanced

Budapest's new bike-share system, Mol Bubi, will soon be extended with 30 new docking stations and 300 bikes, according to the news site, Index.

Though the system opened just a month ago, the city transport organisation BKK believes the expansion is justified due to the better-than-expected uptake by the travelling public. According to Index, the green bikes were checked out 120,000 during the first month -- which comes out to 4,000 rides per day, or about 4 per bike per day.

Financing is no barrier. Because of the many technical delays in Bubi's trial phase -- the public launch was a half year behind schedule -- the private consortium delivering the system is liable for HUF 180 million (EUR 589,000) in contractual penalties. BKK and the T Systems-led contractor agreed to settle the matter with a system expansion.

According to Index, locations for the new docking stations have  to be selected and agreed with the affected districts. Even so, the new stations SHOULD go live within six months (blogger's emphasis.)
Envisioned locations on the Pest side are:  János Pál pápa tér, the Corvin sétány and the Millenniumi City Center. In Buda, they can be expected at Kosztolányi Dezső tér and near the Millenáris.

Bubis are out -- finally!

Photo stolen from the Urbanista blog.

At long last, Budapest's new bike share system has shed its training wheels.

Bubi made its full public debut this morning with 1,100 bikes available from 76 docking stations around downtown, Margit Island and a few places in Buda on or near the Danube bank.

Now, anyone interested in using one can do so. For the grand opening, the price of entry is just HUF 100 (about EUR 0.30). This buys you a seven-day ticket, which is obtainable at a Bubi docking point. You'll need to bring a bank card and mobile phone.

Long-term options are also available. A year pass is HUF 12,000 or just HUF 6,000 for those who have a BKK public transport pass. There are other options, as well.

The system launch ends a long, frustrating period of internal and public testing that started back in April. The system was plagued with bugs, mainly IT things related to the rental mechanism and the on-board electronic lock. Just a week ago, there was a reported problem with the docking station bank card reader.

But a final round of public trials involving some 1,000 volunteers ended last week, and the Budapest Transport Centre today opened it up to everyone.
 
In our family, we all have our own bikes and I've wondered whether I'll actually participate in Bubi. But I spotted an attractive feature in the system: With a single long-term pass (Bubi kartya), you can check out up to four bikes at a time. This would come in handy when we have visitors and need some extra bikes. Rather than having to keep a fleet of our own guest bikes, or having to arrange long-term rentals from a Budapest shop (limited weekend hours), we could all walk down to the nearest Bubi station (5-10 minutes from our front door), check out some bikes and take off.

The Bubi bikes are heavy and pokey (like shared bikes everywhere), but for short rides around town, they're fine. I think people will soon come to appreciate how this new mode of transport can make their lives easier and more fun.
 

Bubi rounds up 1,000 guinea pigs in 1 hour

I just got tired of posting pics of Bubi bikes.

The internal testing phase for Bubi is finally over and now begins the public trial.
City transport company BKK has rounded up 1,000 volunteers for testing, and on Thursday, they will start a two-week trial to see how the system performs in real-world conditions with a large base of clients.

After the trial, each volunteer user will be asked to fill out an evaluation questionnaire, with results feeding into a final refinements of the system before it opens to the wider public.
BKK apparently had an easy time identifying volunteers. It posted an announcement promising a free six-month Bubi pass (value of about EUR 30) to anyone who would take part. The requirements were that they use the system at least 10 times during a two-week trial, and follow through with the evaluation.

Electronic registration opened Monday morning at http://molbubi.bkk.hu/ and within one hour BKK had their thousand guinea pigs.

Not surprising, as the bikes have been out on the streets since the first week of April, while usage has been restricted to a small number of handpicked volunteers in an internal test. I've followed the process quite closely and therefore understood that the system hadn't officially opened yet. But I've heard from several friends and acquaintances who had attempted to check out Bubi bikes, and then walked away frustrated thinking they simply didn't correctly interpret the instructions on the Bubi terminals. This goes down to BKK's perplexing policy of not communicating during the trial phase. I can only assume it was because the organisation's leadership was embarrassed about the system's problems.

As was widely reported, Bubi's registration and check-out system had a number of bugs, and the envisioned "brief testing period" stretched out more than three months.

According to the kerekagy blog, T-Systems, the lead partner in the consortium that's implementing Bubi, is liable for a HUF 120 million penalty for the system's tardy launch.

Bubi's testing phase testing patience

Everyone's curious about the Bubi bikes.

On its homepage this week, the Budapest Transport Center (BKK) acknowledged serious problems with the testing phase of the MOL Bubi bike-sharing system, now in two months delay past its April 7 launch date.

Bugs in the check-out technology have prevented testers from removing and reconnecting bicycles at the system docking stations, and BKK isn't satisfied with efforts to fix the problems. The company says it may be forced to cancel its contract with the system providers if they don't get Bubi rolling soon.

The telecom company T Systems leads the implementing consortium, with other partners being the Csepel bike maker and the Germany-based Nextbike bike-share firm.

According to reports on Index.hu and the kerekagy blog, the MOL Bubi system is challenged because it brings together a number of advanced technological solutions (e.g. touch-screen dock terminals, on-board computers on the bicycles, a novel on-bike locking mechanism) that have never been combined together in any bike-sharing scheme.

In response, BKK said that it had done a thorough market investigation of system providers and that the T-System consortium's offer was selected from among several competing bids. One reason the offer was chosen was that it was the least expensive, partly due to tax advantages connected to the inclusion of Hungary-based Csepel. BKK said it understood that there were "risks" with the offer due to the need to develop new software solutions from scratch. And because of this, BKK had insisted that its service contract include a rigorous set of deadlines and financial penalties.

BKK said it was clear from February that there would be difficulties with the telecommunications aspect of Bubi, and therefore the planned launch date of April 7 couldn't be set in stone. However, now that the testing phase is going into its third month, BKK is invoking its contractual protections.

It noted that consortium leader T-Systems has already issued a public call for patience as it works with its partners to get Bubi rolling.

According to the BKK communication, the consortium is liable for an HUF 1.798 million penalty for each day of delay past April 7. As of June 4, the accumulated penalty was already HUF 104 million.

According to the contract, the penalty ceiling is HUF 179.8 million and this will be reached on July 16 if Bubi doesn't launch before then. BKK says at that point, it could demand payment of the penalty and terminate the contract. However, BKK says it has 100 staff working on testing and is committed to have the project succeed if at all possible.