The modes of government guidance for public bicycle operation and state-owned company operation: a case study of Hangzhou city in China

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The amount of public bicycle use in China has rapidly increased in the last ten years. By the end of 2013, public bicycle projects were operating in at least 70 cities, and there are more than 6 cities with a bicycle population exceeding 10 thousand. However, the local governments implement different public bicycle operation modes, which result in different effects. In this paper, four modes are summarized, including the Beijing mode of company operation, the Wuhan mode of company operation and government limited support, the Shanghai mode of company operation and government purchase, and the Hangzhou mode of government guidance and state-owned company operation. The Hangzhou case study shows that the Hangzhou mode is the best choice for China. Hangzhou is running the largest public bicycle program to date with a noticeable impact in the world. By 2013, 69,750 bikes are used with an average of 5.5 times each day. Most programs have not shown to be economically sustainable while Hangzhou is an exception. The rental, advertising and exporting of techniques guarantee the balance of expense and income in Hangzhou program. Economical sustainability is the key factor of successful application of Hangzhou mode. In future program planning, the authors suggest that bicycle transportation should be included in the public transportation system, while government guidance and state-owned company operation is the most healthful mode for most of public bicycle projects due to its public service attribution. Moreover, based on the survey results 57.14% cyclers are not against the increase of rental, the authors suggest that the rental can be adjusted to improve the income for city-transit policy makers.