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Business News Transportation

Is Cincy RedBike America’s Most Financially Successful Bike-Share System?

RedBike Monthly Ridership Totals
RedBike Monthly Ridership Totals

Since launching nearly two years ago, RedBike has been embraced by the region in a way even the bike-share system’s early proponents had not imagined.

When RedBike opened to the public on September 15, 2014 it included 29 stations, but has since swelled to 57 stations spanning two states, four cities and more than a dozen neighborhoods. The ability to expand and integrate the system across state and city lines is particularly notable as it is a feat most other bike-share systems in North America have not yet achieved.

This relatively rapid expansion has been fueled by higher than expected ridership. As of early July, RedBike had hosted 116,739 rides – or about 5,300 per month. Bolstered by more than 1,500 annual members, these ridership totals translate into some 17,683 different people who have ridden a RedBike.

“Red Bike has gotten off to a dream start. Our community has embraced this new form of transportation,” Leslie Maloney, President of the Red Bike Board of Directors and Senior Vice President of the Carol Ann and Ralph V. Haile, Jr./U.S. Bank Foundation, said in a prepared release. “We will work to continue providing the highest quality and most fun transportation option in Cincinnati.”

Following the trends of bike-share systems elsewhere throughout the world, approximately 74% of its riders have either never ridden a bike before or at least not within the month before RedBike opened. This data makes many bike advocates in the region looking for ways to improve road safety for the surge of new cyclists out on the streets.

The biggest news in RedBike’s recently released annual report, however, pertains to its finances.

While many bike-share systems around the country have struggled financially, RedBike has been able to operate in the black since its inception, and has grown its cash reserves year-over-year.

In 2014 RedBike had a total of $234,251 in expenses and $1,144,911 in revenues. That net income grew in 2015 when the bike-share system had $484,389, but $1,740,792 in revenues. This net income, RedBike officials say, is used to purchase capital equipment necessary to keep the system fully functional.

While it is difficult to find bad news in the financial details released by RedBike, one might look at the fact that direct program income (user fees) cover only 65% of program expenses. When factoring in sponsorships, a fairly reliable and steady stream of income, it covers nearly 118% of program expenses.

All of the other income sources help to further stabilize the system, keep it operating at reliable and optimal levels, and are helping build a reserve fund that could be used to offset unexpected capital expenses or lower than anticipated operational performance.

UC Health is thrilled to be the presenting sponsor of the RedBike program,” said Dr. Richard P. Lofgren, President and CEO of UC Health. “As someone who lives downtown, all I have to do is look outside to see how successful this program is, and how bike share has been embraced by the citizens of Cincinnati.”

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Up To Speed

Maplewood Kitchen and Bar adds breakfast option to center city’s offerings

Maplewood Kitchen and Bar adds breakfast option to center city’s offerings

The owners of Thunderdome Restaurant Group first became popular with their Bakersfield restaurant in Over-the-Rhine. Since then the ownership group has opened several other concepts, including the newly opened Maplewood Kitchen and Bar.

Described as being California-inspired, Maplewood specializes in their brunch offerings, and is located in the 84.51º Building on Race Street downtown. While many of the new restaurant offerings in the center city are opened late into the night, Maplewood Kitchen and Bar adds another option for those looking for breakfast options. They’re open from 7am to 3pm Monday through Saturday.

More from the Business Courier: Maplewood Kitchen and Bar adds breakfast option to center city’s offerings

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News Transportation

Running Time Adjustments Go Into Effect For 9 Express Metro Routes on Monday

Following the re-routing of numerous express bus routes through the central business district earlier this year, Metro is now also making minor running time adjustments to many of these same routes.

The changes will go into effect on Monday, June 20, and will impact Metro’s express routes to Tri-County (23X), Mt. Lookout (25X), Milford (29X), Montana (40X), West Chester (42X), Sharonville (67), Kings Island (71X), Delhi (77X) and Eastgate (82X).

The Southwest Ohio Regional Transit Authority did not offer an explanation for the changes, but it is normal for the transit agency to make adjustments such as this in order to improve efficiencies or avoid service conflicts.

Commuters looking to adjust their schedules to the new timetables can do so by viewing the new schedules on Metro’s website, or by using one of the real-time transit data apps now available to Cincinnati-area bus riders.

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Business News Politics

For Economic Growth, Milwaukee Region Chooses Collaboration Over Competition

When Omnicare announced in late 2011 that they planned to move their headquarters from Covington across the river to downtown Cincinnati, it showcased the intense regional competition for jobs and economic development.

Due to the region’s particularly fragmented setup of multiple states, counties, cities and townships, a myriad of governments and development entities tout their respective advantages in workforce training, tax incentives, and infrastructure access, to lure development from out of the area, but also from neighboring localities; and companies have been more than happy to float from one place to the next in order to take advantage of those incentives.

Yet, data shows that while this desire to expand the local tax base is enticing, it amounts to little or no new jobs or income for the region as a whole. Rather, the habit is more cannibalistic in nature, especially given that cities today are competing not just with their neighbors, but also with far-flung metropolitan areas around the world.

While both unique and similar Cincinnati in many ways, Milwaukee and its surrounding areas have taken a wholly different approach to that of Greater Cincinnati.

When current Mayor Tom Barrett (D) was elected in 2004, he was intently focused on improving economic development within Milwaukee proper. To achieve this, local leaders came together to form the Milwaukee 7 – an economic development organization for the seven counties in the region. To help curb damaging intra-regional competition, the group agreed to a code-of-ethics where they promised to not steal jobs from one another, but rather focus on economic development cooperation.

M7’s metropolitan business plan is now the foundation for regional development, but the group also recognizes that a thriving region is dependent on an also-successful inner-city. For this, the City of Milwaukee develops its own economic development plan that uses ideas from, and coordinates common areas with, the regional plan. This helps connects local revitalization efforts with regional economic development strategies.

Again, rather than attempting to lure firms from outside the area, local officials recognized their competitive advantage in numerous areas and chose to reinforce those. Specifically, M7 identified the area’s competitive advantages in three areas: water technology; energy, power and controls manufacturing; and food and beverage.

To ensure that the region remains attractive and stays on the cutting edge of business and technology, local officials have created numerous entities to promote and develop industry throughout the region. Each of the three industry clusters have a respective local organization that has developed clear-cut plans to encourage innovation and collaboration to grow the industry.

Going a step further, the Milwaukee region has also created a global trade and investment strategy in order to attract foreign firms and capital.

The results of this intra-regional collaboration have been positive. In November 2015, UrbanCincy published a story about Milwaukee’s burgeoning water industry that is transforming a once-decrepit manufacturing area into a modern industrial center.

Like many other cities in the industrial Midwest, Milwaukee has hundreds of vacant industrial buildings and acres of abandoned land. Millions of dollars have been spent in redevelopment efforts, with areas like the Menomonee Valley seeing food and beverage industry expansion there, and a former Pabst Blue Ribbon brewery being converted into residential spaces to bring workers closer to the new jobs downtown.

In a region with one of the highest percentages of concentrated poverty in the nation, officials are hoping the efforts will ensure that redevelopment and economic opportunities are broad-based and accessible.

A regional talent partnership is being used to help grow talent that caters to the three industry clusters; and construction projects with public support are required to hire locally. Those firms help train and hire under-employed and unemployed Milwaukeeans through collaboration with organizations like the Wisconsin Regional Planning Partnership.

In the low-income, northwest section of Milwaukee, an 80-acre brownfield site called “Century City” is being redeveloped into a Center for Advanced Manufacturing. And with development booming in downtown Milwaukee, funds generated from those investments are being redirected into numerous projects in other parts of the city, like transportation and community development organization funding.

While it is too early to judge some of the results seen thus far, the Milwaukee region is now more productive than it was at the turn of the century, and it is adding both jobs and residents. At the same time, more citizens are employed, and wages in the area are higher than the national average.

The Cincinnati region has, in recent years, begun making concentrated efforts at developing similar programs. However, many of the programs have been focused at the city-level. Until the region establishes a similar regional partnership that gets everyone working toward the same goals, it is unlikely that similar results will be seen here.

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Business News Transportation

With Commuters Slow to Embrace It, Cincinnati Bike Center Finding New Niche

Tucked away beneath the Schmidlapp Event Lawn at Smale Riverfront Park is a great resource for the local cycling community. The Cincinnati Bike Center serves downtown commuters, as well as tourists and locals who may want to take a spin around riverfront parks and urban neighborhoods.

The bike center opened with the first phase of the park four years ago. Located at 120 East Mehring Way, the facility is built into the park structure at the bottom of the Walnut Street Steps, which features a bike runnel for easy movement between levels of the park, and operates in this location under contract with Cincinnati Parks.

Brady Willenbrink, who has served as the manager for the past year-and-a-half, told UrbanCincy that he is setting out to increase public awareness of the center and its many services.

While the center does not sell bicycles, it does operate as a repair shop, performing small fixes such as tire replacements and minor adjustments, or larger jobs like full tuneups and part replacements. Some cycling apparel and accessories are available for sale.

The original vision for the facility was to serve as a commuter station for downtown workers. Such an operation was seen as being similar to the famed McDonald’s Bike Center in Chicago’s Millennium Park. In fact, Cincinnati’s concept even used the same operator and hired the director of Chicago’s center to come and run the new outpost along Cincinnati’s central riverfront.

Over the past four years the Cincinnati Bike Center has signed up just 30 members – a number they say continues to grow. True to the original vision, those commuting members have 24 hour access to a secure, camera guarded space with bike racks and locker rooms. Members are also provided with 20% discounts on repairs, apparel and most other services offered at the CBC.

“They get a locker, take a shower, clean up, go to work, come back, change into their bike clothes and go home,” Willenbrink explained.

Commuters may join with monthly or annual memberships, and the option to use the station on a daily basis is available for occasional commuters or those wishing to try out the facility. Riders also can take advantage of bike valet parking in the secure space during Cincinnati Reds baseball games at the nearby Great American Ball Park. This service is open to all, not only members, and costs just $1 per bike.

It is these more temporary service offerings, however, that have proven to be most popular. Of those, none has been more well-received than the bike rentals offered at the facility.

The resounding popularity of Smale Riverfront Park has made it a day or weekend destination for many visiting the center city since it has opened. With a variety of bikes available by the hour or by the day – including cruiser, road, electric assist, kids, tandem bikes, and bikes that are driven by hand-powered cranks for free use by the disabled. In addition, the center’s small, large, and extra large ‘Quadcycles,’ which have four wheels and seat up to nine people, have been extremely popular with families and other large groups.

Taking lessons from this, the Cincinnati Bike Center has established several popular bicycle and Segway tours. These are scheduled daily along several routes throughout the center city and even extend into Northern Kentucky.

While the center’s operators are hopeful the completion of the Ohio River Trail to the city’s eastern and western suburbs will bolster commuter memberships, Willenbrink says that they will also build on their strengths by soon hosting group bike rides one Friday per month that will be open to the public.

Detailed information on those rides, he says, will be shared soon through their social media pages.