On Two Wheels in Paris: The Velib’ Bicycle-Sharing Program
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Publication Date:
December 05, 2011
Industry:
Transportation
Source:
Harvard Business School
French advertising company JCDecaux and the city of Paris jointly developed Vélib’, a wildly popular bicycle sharing system. Despite Vélib’s public appeal, vandalism and theft led to ballooning operating costs-costs borne by JCDecaux alone. The two parties opted to renegotiate their contract, which would impact prices, revenue sharing, cost allocation, and the operation of the system as a whole. Could the parties agree on a common strategy that would meet their objectives, while still delivering a first class bicycle sharing service to the city of Paris?
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On Two Wheels in Paris: The Velib’ Bicycle-Sharing Program
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