MIAMI BEACH (CBS4) – Restrictions on advertising have cut into a South Beach bike-sharing program’s bottom line.
DecoBike officials said they haven’t generated even 20 percent of the anticipated advertising revenue because the city has prohibited them from selling advertising space on their seven foot tall bike racks. Ads are limited to the bicycles’ baskets.
The privately operated program, which began four months ago, has become quite popular. So far, residents and visitors have taken 180,000 rides on bikes picked up at 72 racks throughout South Beach.
DecoBike receives no public funding. In exchange for space for the bike racks, it gives the city a percentage of its membership and rental fees and advertising revenue.
The company said membership and rental fees are on target, but it needs the ad revenue to maintain the bikes and expand the program.
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