Evaluating the Impact of Pricing Plans on Bike-Sharing Usage in Mid-Sized City of the United States

Abstract: Bike-sharing systems have emerged as a promising solution for short-distance travel, effectively addressing the challenge of first and last mile connectivity in public transportation. While existing research has explored various motivations and barriers influencing bike-sharing usage, there is a notable gap in understanding the impact of pricing structures on ridership. This study investigates the effects of different pricing policies on bike-sharing participation, with a specific focus on the TUGO bike-sharing system in Tucson, Arizona. Employing a before-and-after analysis, we assess the influence of the recently introduced “Pay As You Go” pricing model, which enables users to unlock bikes for $1 and incur a charge of $0.25 per minute of use. Our dataset includes riders who transitioned to this new plan and subsequently abandoned it, allowing for an in-depth survival analysis. We evaluate key factors influencing user decisions, including seasonal variations, proximity to transit stations, points of interest (POIs), weather conditions, and users’ membership status. The findings from this research provide valuable insights into user preferences, enabling policymakers and bike-sharing operators to refine pricing strategies that enhance ridership and promote sustainability in mid-sized cities of the United States. Ultimately, this work contributes to efforts aimed at reducing traffic congestion and improving environmental health, underscoring the potential of bike-sharing systems as a vital component of urban mobility solutions.