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.
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.
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.
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?