Hanoi (VNS/VNA) - The Hanoi People's Committee has decided to extend the pilot period for its urban bicycle service until the end of 2025.
The service, launched in August 2023, currently operates with 1,000 bicycles distributed across 79 stations in the city. The bike stations are strategically located near bus stops, parks, and tourist destinations to ensure convenience for residents.
Public bicycles are expected to become a popular mode of transport in Vietnam in the near future. However, after nearly a year of operation, the service has not yet achieved its expected uptake.
Consequently, the committee has agreed to extend the pilot phase until the end of 2025, following a proposal from the city’s Department of Transport.
Deputy Chairman of the committee Nguyen Manh Quyen has tasked the Department of Transport with leading efforts to review and finalise all locations for public bike stations.
He emphasised focusing on historical urban districts and enhancing connectivity with other public transport systems like buses, BRT, and urban railways.
Quyen also instructed the department to review legal regulations related to implementing the urban bike service, develop standards and pricing, and outline procedures for next steps after the pilot phase.
Hanoi will seek guidance from the Ministry of Transport on developing a management plan for urban bicycles, including both electric and traditional bikes, in compliance with legal requirements.
The public bike project, approved by the city’s People's Committee, consists of two phases.
The first phase, implemented over one year, involves investing in 1,000 bicycles to serve residents in six of the capital city's central districts: Ba Dinh, Tay Ho, Hoan Kiem, Dong Da, Hai Ba Trung, and Thanh Xuan.
The second phase will expand the service to include other central and adjacent districts, adding approximately 3,000 bicycles.
Do Ba Quan, Chairman of the Board of Directors of Tri Nam Digital Transport Service JSC, stated that over 700 bicycles have been deployed across 99 stations in six inner-city districts.
The service has attracted over 208,000 registered users, with an average of nearly 700 new registrations daily.
Since its inception, approximately 340,000 trips have been completed.
He also said that over the first year of the pilot phase, revenue from the service is estimated at more than 3.7 billion VND (145,750 USD). However, the service has incurred losses of over 2 billion VND due to operating costs.
Explaining the factors affecting revenue, he highlighted the low rental prices. A 30-minute trip costs users 6,000 VND, including 5,000 VND for bike rental and 1,000 VND for insurance.
Low fares encourage public use. However, we have not received subsidies like buses or trains, so we must cover all operating costs independently. Additionally, the system has not yet reached the 1,000 bicycles outlined in the proposal, resulting in revenue falling short of the target, Quan explained./.
