Any expansion outside Divvy contract would require City Council approval. Lyft has agreed to absorb any financial threat of Divvy’s functionality, or so the city is not currently sharing in operational losses before.
Here are the details: Lyft will invest $50 million into channels and the bicycles in exchange for performance and sponsorship. The business would have to modernize the program by 2021 which means bringing each ward Divvy and including 10,500 bikes and 175 stations. The city would preserve ownership and establish pricing, but Lyft would be responsible for working Divvy. Lyft owns , Divvy’s operator, also purchased it annually.
Mayor-elect Lori Lightfoot was not entirely on board with all the contract which has been put by Mayor Rahm Emanuel, according to the Chicago Sun-Times. The newspaper reported she said the deal was,”precisely the kind of governance that we must move away from”
Now the contract has been accepted, it is time to formally say goodbye to those Uber Jump bikes along with Lime bikes the city piloted in 2018.
Uber was critical and lobbied against any exclusivity, since the contract has been proposed from mid-March. In reaction, the Chicago Department of Transporation (CDOT) published a “myths vs. facts” sheet to fight Uber’s talking points.
Despite Uber’s campaign of misinformation, the City Council committee approved Lyft’s exclusive agreement to expand the Divvy bike-share service on Monday.
For example, Uber asserts they offered a $450 million dollar investment which had a timeline. However, the city clarifies by stating,”A majority of the cash [Uber] did suggest represents their particular costs to buy and operate equipment they’d possess,” and in the current deal the city would have the capacity to”keep management and roll out the bikes in an orderly manner.”
A City Council committee Accepted the Offer