Jan. 02--Divvy, which raised the cost of a 24-hour pass from $7 to $9.95 in July, is raising its annual membership fee to $99, a 32 percent hike.
The $99 fee is for customers who pay one annual installment to the bike-sharing company. Divvy members also will have the option, beginning Feb. 1, of paying $9.95 per month for one year, for a total of almost $120. The membership had been $75.
In 2014, Divvy had a $500,000 operating loss and the city used grants it received for the federally funded program to erase the deficit.
The daily fee was increased in July to combat the deficit and the escalating costs of running the expanding system. That hike was expected to generate an extra $400,000 during the remainder of 2015 or $800,000 on an annual basis.
Susan Hofer, a spokeswoman for the city's Department of Transportation, could not say if the goals of the daily fee rate hike were met.
Elliot Greenberger, general manager of Divvy's parent company Motivate, said in a statement that "this rate adjustment allows us to continue improving service for Divvy riders." He offered no specifics.
Yearly memberships allow an unlimited number of trips of 30 minutes or less. Riders can rent a bike at any of the docking stations and then dock it at a another station.
If a user's membership expires in January or February and is renewed before Feb. 1, the customer will still be able to renew it at $75. The Divvy for Everyone program will remain in effect, allowing people who earn less than 300 percent of the federal poverty level to register for only $5 for the first year.
In 2015, Divvy gained 8,760 annual members and had a 30 percent increase in trips between 2014 and 2015, according to city officials. It also increased its fleet of bikes from 3,000 to 4,750.
"In a little more than two years of operation, Divvy has grown rapidly to become the largest bike-share system in North America, based on geographic area served," Hofer said in an email. "In order to maintain the high level of customer service that our users have become accustomed to and to continue to grow the program, it was necessary to make this price adjustment."
Rolled out in 2013, Chicago's Divvy bike program was to become financially self-sustaining and support growth for more bicycling infrastructure with the hopes of easing traffic congestion, improving air quality and encouraging more a active lifestyle.
gwong@tribpub.com
