Meeting_Body
REVISED
OPERATIONS, SAFETY, AND CUSTOMER EXPERIENCE COMMITTEE
MAY 15, 2025
Subject
SUBJECT: METRO BIKE SHARE PROGRAM
Action
ACTION: AWARD CONTRACT
Heading
RECOMMENDATION
Title
AUTHORIZE the Chief Executive Officer to:
A. AWARD a firm fixed unit rate Contract No. PS124715000 to Lyft Bikes and Scooters, LLC to provide the Metro Bike Share (MBS) program services in the Not-To-Exceed (NTE) amount of $86,845,569 for the five-year and six month base term, $42,119,497 for the first three-year option term, $46,403,975 for the second three-year option term, and $22,879,834 for optional expansions to other jurisdictions for a total NTE contract amount of $198,248,875, subject to the resolution of properly submitted protest(s), if any; and
B. EXECUTE individual contract modifications within the Board approved contract modification authority.
MITCHELL AMENDMENT:
C. Report back in November 2025 and annually thereafter on:
1. Development and implementation of the Good Neighbor Policy, non-smartphone and non-credit card payment options, and options for unbanked individuals;
2. Performance of the Metro Bike Share program, including performance requirements tied to liquidated damages, and development and implementation of the public facing dashboard on performance metrics;
3. Lyft’s utilization of BikeHub’s union members of Transport Workers’ Union;
4. Plan for sustainably recycling and disposing end-of-life bikes and e-bikes;
5. Plan and implementation of grant and non-grant related service expansion, including outreach to local jurisdictions for participation in the Metro Bike Share program; and
6. Funding plan to expand the Metro Bike Share program
Issue
ISSUE
The current MBS contract, inclusive of three one-month options, will expire on November 30, 2025. To provide continued and seamless service to the public, a new contract incorporating the Board-approved model in response to the December 2021 Board Motion No. 41, authored by Directors Krekorian, Garcetti, Kuehl, and Sandoval (Attachment A), is needed.
Background
BACKGROUND
MBS was launched in July 2016 and is Metro's first deployment of a regional Los Angeles County Bike Share program. While the program grew to include the City of Los Angeles, the City of Pasadena, and the Port of Los Angeles as partners, both the City of Pasadena and the Port of Los Angeles elected to leave the program, citing cost considerations. Since its inception, the City of Los Angeles has been and remains a steadfast partner.
MBS currently consists of 225 stations and up to 1,800 bikes. Ridership has fully recovered from COVID impacts and surpassed pre-COVID levels with 519,392 rides recorded for 2024, highest annual ridership to date. The 2024 ridership is 66% higher than the pre-COVID highest annual ridership registered in 2018. MBS passholder membership also continues to grow year-over-year, with regular passholders growing by 10% and reduced passholders increasing by 39% in 2024. The growth in reduced fare passholders also resulted in a 77% increase in reduced fare trips. For 2024, reduced fare passholders registered 162,702 trips, equating to 31% of the total rides.
Pursuant to the October 2022 Board approved MBS model, staff, in collaboration with the City of Los Angeles, engaged in the development of a Scope of Services (SOS) with the goal of improving the program. The SOS was structured to align with the Board’s direction and the approved model. Key model goals include:
1) Program Cost - Lower cost to Metro and Partner Agencies;
2) Equity - Streamlined expansion controlled by Metro and Partner Agencies, ensuring equitable access to MBS (payment methods, fares) and expanding mobility options to better serve economically impacted communities;
3) Program Management - Performance based fixed unit rate services contract;
4) Agency Control - Metro retains control over key MBS components - expansion, station placement, fares, etc.;
5) Flexibility and scalability to support temporary needs/special events;
6) Equipment Ownership - Contractor to provide and own the equipment;
The new model provides and will result in several improvements to the MBS system, with the upgrade of the current equipment being the most visible. The current equipment is approaching the 10-year expected life span and poses a variety of limitations including the use of obsolete stations (current MBS stations are no longer manufactured or available) and the limited availability of e-bikes (less than 15% of the current fleet).
Discussion
DISCUSSION
This contract award aligns with and advances the improved MBS model approved by the Board by enhancing the program performance and cost efficiency. The contract will result in the following improvements:
• Providing and owning all MBS equipment, including replacement of lost/stolen equipment to ensure on-street bike availability and fleet stability;
• Ensuring a transition with minimal impact to MBS customers;
• Ensuring MBS operates as a “Good Neighbor/Community” member with a focus on close collaboration with the community;
• Operating and maintaining the entire MBS system (equipment, hardware, software and systems) in accordance with performance requirements and standards;
• Ensuring improved equitable access to MBS;
• Increasing ridership, rider diversity, and use cases for MBS;
• Supporting special events;
• Expanding MBS to other jurisdictions as authorized by Metro;
• Lowering program cost
Metro will continue to retain full authority over station placement, fare structure, expansion, sponsorship/advertising, and the overall MBS brand. Additionally, Metro, in collaboration with partners, will continue to actively monitor and manage the program to ensure the Contractor’s adherence to the performance requirements and the SOS.
Under the new contract, MBS equipment will be replaced with all new equipment, which includes increasing the number of e-bikes to 80% of the on-street fleet (1,440) and the installation of 50 stations with in-dock e-bike charging ability. MBS e-bikes have consistently, demonstrated their appeal by being used over 7 times more than the classic “human-powered” pedal bikes.
Attachment B outlines additional improvements anticipated with the new contract.
• Cost Reduction
One of the goals of the Board approved MBS model is to ensure the financial sustainability of the operation and expansion of MBS. Table 1 outlines the estimated cost savings achieved with the new model to operate the current MBS system. The savings are based on the current model, which include costs Metro must bear to support the replenishment of lost equipment, escalating at an annual rate of 1% to 3.5%. On a strictly “apples to apples” comparison, the cost to operate the current MBS system under the new contract will be reduced by 36% to 39% over the base 5-year operating period. Over the 11-year contract period this contract is estimated to save $55 to $77 million (32% to 40%). Note these figures do not include any fare or advertising revenue impacts/offsets.
In addition to the O&M savings, there are equipment cost savings, primarily due to the new model’s requirement for the Contractor to own and provide the equipment. While Metro will no longer be purchasing the equipment, there will still be some upfront costs to secure and install the equipment (akin to a lease structure). These costs are one-time, and any equipment replacement costs are borne by the Contractor rather than by Metro.
Table 2 provides a summary of the cost and savings associated with the grant funded expansion. The grant funded expansion provides the opportunity to fill-in service gaps between the Downtown and the Westside service areas, with approximately 100 stations and 1,000 bikes (this area is estimated to be 48% EFC), as well as filling the gap between the Downtown service area and MBS stations located along the Rail-to Rail active transportation corridor on Slauson Avenue in South LA, with an additional 20 stations and 200 bikes.
With the new model, the expansion O&M costs primarily consist of the incremental fixed unit rate cost to operate and maintain the deployed units and is not burdened with full administrative or other costs, resulting in an overall larger per unit savings. With the reduced cost from the new model and the use of the grant funds, the expected overall cost for this expansion is less than $8 million for the 5-year base contract period, without fare or advertising revenue offsets.
Of note the total 5-year O&M cost for the current MBS System and Expansion, including grant offsets but no fare or advertising revenue offsets, is approximately $56M, which is $20M to $24M (26% - 30%) less than the estimated current model without expansion related costs included.
These cost reductions represent one part of the efforts to improve program efficiency. With new equipment and the pending REAP and RCN funded expansion, ridership is expected to grow; thereby generating increased fare revenues. Additional advertising revenues may also become available as ridership increases and the program expands. With this Contract and due to the equipment exchange, all stations will now have the capability to display static ads and the electrified stations will have the opportunity to generate additional revenue by deploying digital ads advertising. Further discussions with and support from city partners will be needed to enable increased advertising revenues from either static or digital advertising.
Transition/Mobilization
MBS will work closely with the Contractor to minimize any impact to users and the community due to the transition to the new system. The transition to the new equipment is scheduled to be completed within 6 months from the Notice to Proceed. This includes all equipment exchange, deployment of the new website and mobile app, transfer and/or set-up of existing MBS members on the new system, outreach, education and safety classes, permits and other associated actions. The existing equipment will be stored by the Contractor and MBS staff will coordinate the appropriate transfer, sale, donation or other disposal of the equipment.
With respect to existing contractor staff impacts, the new contract requires both living wage and worker retention. The Contractor has met both requirements and will utilize Transport Workers’ Union (TWU) members as well as continue to recognize their collective bargaining agreement.
Additional information regarding the Transition/Mobilization can be found in Attachment B.
Future Expansion
A key element to the future success of MBS and in alignment with prior Board direction is the sustainable and equitable expansion of the system. Expansion consists of gap/in-fill, new service area and new partner/jurisdiction expansion. There are a number of jurisdictions, such as Culver City, Pasadena, Santa Monica, Glendale, County of Los Angeles and others, who have, in the past, expressed interest in becoming MBS partners. The ability to expand MBS not only requires internal contractual authority but also an agreement with the partner agency, which shall address cost sharing requirements. As stated, this new contract represents a reduction in both the initial capital/equipment and on-going operational costs. This cost reduction coupled with improved services is anticipated to result in the ability to pursue a more sustainable expansion of MBS. Additionally, due to the e-bike transition, ridership is projected to grow, resulting in increased fare revenue and the possibility of increased advertising/sponsorship opportunities, which will provide additional offsets to operating costs.
The contract contains an option to support future new partner/jurisdiction expansions and on-going operation. Any expansion associated with this option will require Board approval prior to implementation.
Strengths of Recommended Contractor
The recommended Contractor’s proposal stood out due to the following areas of strength, which are anticipated to enhance the performance and operation of the MBS program. This includes a strong track record in managing large scale bike share programs within and outside of the U.S.
• Their operational footprint covering 60 cities and 16 countries - including operating the 6 largest docked bike share programs in the US (New York, New Jersey, Washington D.C., Boston, Chicago, and the San Francisco Bay Area).
• Experience having handled numerous special events from weather, protests, parades, sporting events, concerts/festivals, Presidential Inaugurations, UN General Assembly meetings, etc., which can help MBS as it prepares to support the World Cup and Olympics/Paralympics.
• Experience with the deployment and operation of in-dock charging stations having installed stations in over 20 cities amounting to more than 2,100 stations and 43,000 docks globally. As MBS transitions to an 80% e-bike fleet with 50 in-dock charging stations, the Contractor’s experience and capabilities to support MBS is critical to successfully implement the new service.
• Ability to leverage existing operations and services to:
o Obtain temporary support and equipment for Los Angeles major events - World Cup, Olympics/Paralympics, etc.
o Use existing venue partnerships (Live Nation, SoFi, Intuit Dome) to better support events
o Learn, coordinate and possibly integrate with their other operations to provide a more seamless system for travelers and improve services for MBS customers
• Extensive experience with sponsorship in support of bike share (Citi, Nike, Blue Cross/Blue Shield). While Metro retains the rights to advertising and sponsorships, the experience of having secured large value sponsorships for other systems can be beneficial to MBS in the future.
• Experience with integration of bike share applications and services with the Bay Area Clipper Card and Madrid Mobility 360 App. This experience is beneficial to improving MBS integration with TAP (Clipper Card uses Cubic as its provider) and Metro single app project (Madrid Mobility 360 is a Mobility as a Service solution that integrates train, bus, bike share and other transportation services into a single app).
• Finally, the recommended contractor has committed to surpassing the 15% DBE goal through their commitment to meeting more than double the DBE goal at 31.46%.
Determination_Of_Safety_Impact
DETERMINATION OF SAFETY IMPACT
Approval of this item will ensure the continued safe and reliable operation of the Metro Bike Share program and is not anticipated to have any negative safety impacts. Additionally, this Contract will provide monthly bicycle education, safety and riding classes to improve the awareness and capability of future bike riders.
Financial_Impact
FINANCIAL IMPACT
Funding in the amount of $26,071,011 is included in FY25 and funding is allocated in the FY26 Proposed Budget to enable the transition, operation, maintenance, and expansion of the MBS program under cost center 4540 - TDM Policy & Regional Shared Mobility, account 50316, Professional Services, under Project #308010 “Bikeshare Program Operating & Maintenance and Project #210186 “MBS Bikeshare Equipment & Expansion”. Under the existing cost sharing partnership with the City of Los Angeles, any capital costs are shared equally between Metro and the City (50/50), while operating costs are allocated on a 35% Metro - 65% City partner split. The City is aware of the cost, provisions and requirements of this contract and has provided their concurrence to proceed with the transition of the current MBS services. REAP and RCN related expansion actions, while part of the contract, are pending final concurrence from the City of Los Angeles prior to authorization.
Since this is a multi-year contract, the cost center manager and Deputy Chief Operations Officer, Shared Mobility will be accountable for budgeting the costs for future years.
Impact to Budget
There is no impact to the current FY25 budget. Funding for MBS is included in the FY25 budget and consists of City of Los Angeles subsidy, fares, DoorDash advertising revenue, and other bus and rail operating-eligible funds.
Metro received $7.55M in REAP funding from the State to specifically support the expansion of MBS. Additionally, as part of Metro’s larger $139M Federal RCN grant, Metro received $5M to further support MBS expansion. Together these grant funds will offset 62% of the total cost to expand MBS. The remaining cost of $7,742,813 over the 5-year period, less any fare and advertising revenues, will be borne by Metro and the City of Los Angeles. Since the award of the grants coincided with this procurement action, both the REAP and RCN grants were incorporated into the base contract to enable a more streamlined and timelier implementation.
Additionally, in support of the installation of in-dock charging stations, a proposal was submitted to the Joint Office of Energy and Transportation and an initial notice of award in the amount of $2 million was received. This award is still pending final authorization/certification. In the interim, staff will continue to investigate and pursue grant or alternative funding opportunities to help offset these and other MBS costs.
Equity_Platform
EQUITY PLATFORM
The approval of this new contract will ensure Metro’s ability to continue to operate and maintain and work towards a regional bike share program that is accessible to Los Angeles County residents. Metro is committed to expanding the program beyond the City of Los Angeles to include other jurisdictions. Currently, 47% of stations are in EFCs and 40% of all trips are initiated at EFC stations. Under the new contract, the Contractor will implement strategies to build community partnerships through local engagement opportunities with stakeholders and residents at events, both in-person and virtual, and by ensuring information is provided in multiple languages and formats. The Contractor will also develop a “Good Neighbor” plan, subject to approval by Metro, with adherence to this plan being a performance metric subject to potential liquidated damages. The “Good Neighbor” plan is tied to the goal of MBS providing exemplary customer service and being a valued addition to the community/neighborhood within which MBS operates. The purpose of this plan is to better understand how MBS can serve the community and all customers - this includes passholders, single-trip riders, potential riders, partners, businesses and any others that may be impacted by MBS throughout construction/relocation, as well as during general operations, with the goal of enabling MBS to better implement and operate its service to meet community and customers’ needs. The plan will outline how MBS will engage, listen, adapt and serve the neighborhoods, businesses and communities within which it operates. Key to this strategy will be to maintain ongoing communication with residents of these communities and to provide a process so that station planning is transparent and allows community members to provide their input.
Metro will collaborate with the Contractor and MBS partner(s) to establish a national model for bike share equity, focusing on communities with “High Need” and “Very High Need” based on the Equity Need Index (MENI) tool which is used to identify areas with the greatest need for transportation equity. The Contractor will propose service metrics, non-smartphone and non-credit card payment options, outreach strategies for disadvantaged populations and a plan for engaging with residents in EFCs. Metro will also collaborate with our MBS partner(s), the Contractor and other stakeholders to consider and identify options that will support expansion of MBS into EFCs through potential grants, such as Better Bike Share Partnership grants, cost-sharing, and other solutions.
In addition, offering an option for individuals who are unbanked or may not have access to a digital device, will be advanced with the new contract as part of the Mobility Wallet solution. Working closely with TAP and the Office of Strategic Innovation will allow Metro to identify an implementation plan for MBS users beyond the current pilot phase. The contract will also allow Metro to work toward an improved and integrated payment solution that provides a more streamlined process. Integration will allow payments within TAP and outside of the TAP environment leading to improved user experience and allowing for greater access overall for LA County residents as well as for visitors anticipated to attend the upcoming major events hosted in the region.
This contract includes a 15% DBE goal established by DEOD. In response, the Contractor is committed to meeting a 31.46% DBE goal, allocated to 4 subcontractors.
Vehicle_Miles_Traveled_Outcome
VEHICLE MILES TRAVELED OUTCOME
VMT and VMT per capita in Los Angeles County are lower than national averages, the lowest in the SCAG region, and on the lower end of VMT per capita statewide, with these declining VMT trends due in part to Metro’s significant investment in rail and bus transit.* Metro’s Board-adopted VMT reduction targets align with California’s statewide climate goals, including achieving carbon neutrality by 2045. To ensure continued progress, all Board items are assessed for their potential impact on VMT.
As part of these ongoing efforts, this item is expected to contribute to further reductions in VMT.
Metro conducted a preliminary analysis which showed that the net effect of this multi-modal item is to decrease VMT. To date, more than 9.1 million miles have been traveled by MBS users, which represents a minimum reduction of approximately 1.9 million VMTs since the 2024 MBS survey results show 22% of users would have driven their personal vehicles or used a taxi or equivalent vehicle to complete their travel if not for MBS.
*Based on population estimates from the United States Census and VMT estimates from Caltrans’ Highway Performance Monitoring System (HPMS) data between 2001-2019.
Implementation_of_Strategic_Plan_Goals
IMPLEMENTATION OF STRATEGIC PLAN GOALS
MBS program supports the following Vision 2028 Strategic Plan Goals. MBS ensures users have access to a system that consistently meets high quality standards and that is readily available 24/7 so that there is no wait time. Stations are located near transportation and bicycle infrastructure projects that connect users to the larger transportation system as well as employment centers, colleges/universities, and other destinations. MBS is committed to regional growth and expansion and to being a model for other cities and communities that incorporates best practices in delivering a financially sustainable program,
1. Provide a high-quality mobility option that enables people to spend less time traveling.
2. Deliver an outstanding trip experience for all users of the transportation system.
3. Enhance communities and lives through mobility and access to opportunity.
4. Transform LA County through regional collaboration and national leadership.
5. Provide responsive, accountable, and trustworthy governance within the organization.
Alternatives_Considered
ALTERNATIVES CONSIDERED
The Board may reject the approval of the recommendations. This alternative is not recommended as it could negatively impact the public as the current contract for MBS services will expire on November 30, 2025, inclusive of three one-month options.
The Board may also decide to cease all MBS operations. This alternative is not recommended as MBS is a key component in providing a comprehensive transportation solution to meet the varied needs of Los Angeles County residents and visitors. MBS provides an effective zero-emissions VMT alternative to using a vehicle for short trips.
Next_Steps
NEXT STEPS
Upon Board approval, staff will execute Contract No. PS124715000 with Lyft for the MBS program and initiate the transition from the current to new contract in as seamless a manner as possible. Staff will initiate outreach efforts to identify and introduce any changes/improvements to the public and existing MBS members and work with the Contractor to secure authorization to enable installation of the in-dock e-bike charging stations. Staff will continue outreach efforts to interested jurisdictions and initiate discussions regarding the possible expansion of MBS. Finally, staff will collaborate with the City of Los Angeles to obtain concurrence and initiate the workplan to implement the REAP and RCN grant funded expansions and ensure adherence to grant requirements.
Attachments
ATTACHMENTS
Attachment A - Motion #41
Attachment B - Improvements & Transition/Mobilization
Attachment C - Procurement Summary
Attachment D - DEOD Summary
Prepared_by
Prepared by: Paula Carvajal-Paez, Deputy Executive Officer, Congestion Reduction, (213) 922-4258
Ken Coleman, Executive Officer, Congestion Reduction, (213) 922-2951
Shahrzad Amiri, Deputy Chief Operations Officer, Shared Mobility, (213) 922-3061
Debra Avila, Deputy Chief Vendor/Contract Management Officer, (213) 418-3051
Reviewed_By
Reviewed by: Conan Cheung, Chief Operations Officer, (213) 418-3034
