NYC Citi Bike Penalty Fees are Money Makers

I stumbled upon a NYC bike share blog and found an interesting post worth sharing. The post is titled: Remarkable how penalty fees are such a steady contributor to bottom line.

The gist is pretty simple. Citi Bike Pass penalty fees for December (a total of $37,000) accounted for 41% of the program’s total monthly revenue.

 

citi-bike-penalty-fees-revenue

 

Who would have thought penalty fees could account for such a large portion of revenue?

And from the looks of it, this is a consistent occurrence.

 

citi-bike-penalty-percentage

Woops! Looks like the original author misspelled ‘Citi’ Bike

 

When the data is broken down further. The penalty fees per rider in December amounted to $2.07 with a rider pass purchase rate of $5.47.

 

Citi-bike-rider-fee

 

Suffice to say it’s remarkable to see how penalty fees are such a steady contributor to revenue. It begs the question, what other industries rely on penalty fees so strongly?

 

All graphs are attributed to BikeShareNYC. Featured image is provided by Nick Harris with the following rights.

 

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