New research suggests that companies located near Capital Bikeshare stations see an increase in business because of traffic from bikeshare riders.

During the 2013 fall semester a group of urban-planning graduate students at Virginia Tech’s Alexandria campus investigated the economic impacts of bikesharing on local businesses.

Together with myself and Andrea Hamre, the students used a sample of five Capital Bikeshare (CaBi) stations in Washington D.C. to conduct intercept surveys with 333 users and a door-to-door survey of 140 local businesses located close to CaBi stations in:

Georgetown (C & O Canal & Wisconsin Ave NW)

Logan Circle (14th St NW & Rhode Island Ave NW)

Adams Morgan (Adams Mill Rd NW & Columbia Rd NW)

H Street (13th St NE & H St NE), and

Dupont Circle (Massachusetts Ave & Dupont Circle).

Overall, the study suggests that CaBi generates shared benefits among users and businesses.

Here are some key findings:

Capital Bikeshare Users

The sample of 333 bikeshare users had a similar demographic profile to CaBi members responding to the most recent Capital Bikeshare Member Survey

73 percent of respondents were motivated to use CaBi because of shorter travel times, while 42 percent reported enjoyment, 41 percent reported exercise, and 25 percent reported lower travel costs

66 percent of users reported traveling to a destination associated with consumer spending (such as food-related or entertainment), and of those 63 percent planned to spend $10-$49 and 30 percent planned to spend more than $50

Most users traveling to spending destinations indicated they would be spending at a business nearby the CaBi station, with 39 percent reporting spending would occur within 2 blocks of the station and an additional 40 percent indicating spending would occur within 4 blocks

About one in six respondents (16 percent) indicated they would not have made their trip without the presence of the CaBi station, while 78 percent indicated they would have made the trip regardless of CaBi (and 6 percent were unsure)

Of those 16 percent who reported making an induced (new) trip, 19 percent indicated they would have likely stayed home rather than traveling to another neighborhood

19 percent of those who indicated they would have traveled to the neighborhood regardless of the CaBi station indicated they were likely to spend more money because of arriving by CaBi

Businesses

A total of 140 businesses completed the business survey, representing a range of business types including 49 percent food-related establishments, 31 percent retail, 11 percent other business types, and 9 percent unidentified

The vast majority of businesses were aware of the CaBi system (88 percent), and 32 percent reported having experience using the system themselves

Most businesses did not know if CaBi had any effect on customer traffic levels. Nevertheless, approximately 10 percent perceived an increase in customer traffic

About one in five businesses perceived that CaBi has positively impacted their sales while another 79 percent reported a neutral impact or were unsure

Most businesses (70 percent) indicated CaBi has had a positive effect on the neighborhood, while another 29 percent reported a neutral impact or were unsure

69 percent of businesses described the location of their business in relation to CaBi as favorable

59 percent of businesses indicated they would like more CaBi stations to be added

22 percent of businesses indicated they would have a positive reaction to replacing sidewalk space with a CaBi station and additional 26 percent would be neutral

29 percent of businesses would have a positive reaction to replacing car parking and an additional 32 percent would be neutral about removing car parking in favor of a bikeshare station.

Photo by M.V. Jantzen