Electric bike sharing: Price sensitivity and pricing preferences

In order to attract the highest possible number of users, municipal authorities and operators of bike sharing systems (BSS) often set very low prices for their services. This frequently results in non-profitability or dependency on public funding. Furthermore, low prices may discourage customers who are concerned regarding the quality of services. In our study, we investigate the impact of socio-demographic characteristics and travel habits on price sensitivity for an e-bike sharing system. We use Van Westendorp's price sensitivity meter (PSM) and the general linear model (GLM) to determine differences in optimal prices for various users and types of BSS. We find that optimal prices may be higher than the ones fixed by authorities and that discounts for female and younger users may result in higher demand for BSS. Moreover, car users are willing to pay less for a BSS than people who never use a car.