Central Leader : December 15th 2010
2 CENTRAL LEADER, DECEMBER 15, 2010 NEWS Office Ph 630 5419 Fax 630 5435 Editor Katherine Forbes email: firstname.lastname@example.org Sales Manager Jeff Clayton email: email@example.com Circulation Ph 525 2022 Fax 580 1648 email: firstname.lastname@example.org Classifieds Ph 525 2100 Fax 580 1643 email: email@example.com 52,975 Audited Circulation (ABC Jan-Dec '09.) Delivered each Wednesday/ Friday to Balmoral, Epsom, Greenlane, Hillsborough, Lynfield, Mt Albert (south of railway line), Mt Eden, Mt Roskill, Morningside, New Windsor, One Tree Hill, Onehunga, Oranga, Owairaka, Penrose (not Te Papapa), Royal Oak, Sandringham, Three Kings. Unit 1.3, 72 Dominion Road. Private Bag 56910, Mt Eden. www.centralleader.co.nz M M B , e m ket 43 H h t eet M 7 MB MASSIVE SUMMER 3; 85 Not the end of road for bikes By RHIANNON HORRELL Storage situation: Nextbike director Julian Hulls is saddened by the decision to close down after not making enough profit to cover advertising costs. The fleet of 170 bikes are now in storage. Photo: JASON OXENHAM The wheels have fallen off a public bike hire business which was striving to help the city adopt cycling. Nextbike closed down last month with the last of its bikes removed from Auckland streets on November 10. The company, which had 170 bikes for hire at points around the city, cut its losses because a business model based on advertising wasn t working. Director Julian Hulls says three years of time and effort and a chunk of money have been poured into the company. We need to have advertising and marketing partners on board. A tiny portion of funding comes from rental revenue but it s mainly advertising. The bikes are now in storage but Mr Hulls says it s not the end of the road. We re looking for a new way to structure the bike service. I imagine it would be publicly funded as a joint affair between the Auckland Council and New Zealand Transport Agency. He suggests the sale of naming rights could generate up to 25 percent of the revenue with the remaining 75 percent from an operational subsidy. We re looking to the future with optimism. The bikes are ready to go. It s quite critical that we get these bikes back on the street as soon as possible. Mr Hulls says Nextbike was the southern hemisphere s first public bike scheme and the only scheme globally to provide helmets with the bike. We have over 2500 members, up from almost 900 in October 2009. We operated more than 55 rental locations city-wide. Over 50 percent of all Nextbike rides have been provided free to Auck- landers as a short trip. Auckland Transport external com- munications manager Sharon Hunter says the organisation whole-heartedly supports cycling and walking systems as active transport. We re looking at other options for something that could be a similar scheme. Nextbike will be included as part of those options. We will keep them in the loop. She says Nextbike received $19,000 to kickstart it last year and was also promoted on the Maxx website s main page. We ve supported them as best as we possibly could, we re now saying let s look at other options and see what s going to work. Ms Hunter says it s important that Nextbike adopt a robust business model. See www.facebook.com/home.php? #!/pages/Auckland/Nextbike-rider/ 124841604218399 to leave a comment.
December 10th 2010
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