Treating Bikeshare as Essential Transportation
Guest post by David Powe, Assistant Commissioner, Chicago Department of Transportation
Bikeshare systems across North America prove their value every day. As they mature and grow, cities are now facing a very real challenge: how to fund bikeshare sustainably and keep it affordable amid tightening public budgets and rising labor and material costs.
In Chicago, we made a straightforward call. Treat bikeshare like the essential transportation it is. Divvy operates through a public private partnership between the City of Chicago and Lyft Urban Solutions, and earlier this year the City introduced a public operating subsidy into the system. That investment improved operations, kept prices stable, expanded discounts for low income and new riders, and supported more reliable service across the city. The results have been clear. Divvy has shattered ridership records this year with close to 7 million rides so far, including nearly a million rides in August alone.
Public investment in Chicago has been tied directly to rider benefits, with real dollars producing real results. Over the past year, the City invested more than $3 million in the Divvy system, including a $1.7 million operating subsidy that continues to fund price freezes, discounts, and new rider benefits. Between June and December 2025, that investment supported:
- 9,200+ price freezes for current members, holding the annual rate at $143 instead of an anticipated increase to $159
- 5,500+ discounted $99 memberships for new and lapsed riders, compared to the standard $143 price
- 48,000+ capped e-bike rides for members, with minutes 31 and 45 being free
- 35,500+ free unlocks in Equity Priority Areas, saving riders $1 per trip
These investments have delivered clear and measurable benefits for riders, and the work is not finished. Nearly $1.2 million remains available to support the busiest signup period in the spring and early summer, helping ensure Divvy can continue to meet demand while remaining affordable.
Just as importantly, the funding was designed to be flexible. Rather than backing a single narrow program, Chicago structured its investment to respond to real world conditions. That has meant addressing availability in high demand areas, continuing to expand service into neighborhoods across the city, and offering steeply discounted memberships to bring new riders into bikeshare. This flexibility has allowed Divvy to adapt as travel patterns change while continuing to meet rider needs.
Divvy’s experience shows there is no one size fits all funding model for bikeshare. But when public agencies and private partners share goals and align incentives, public funding does more than keep systems afloat. It helps make bikeshare systems stronger, more equitable, and built to last.
