Launched in Paris in 2007 by JCDecaux, Vélib was expected to constitute the largest bicycle park of its kind in the world. But although wildly popular, its operations came under pressure because of the unexpectedly high incidence of vandalism. Many bikes were damaged or stolen. As bike availability diminished, JCDecaux was increasingly exposed to the heavy penalties set out in the initial contract with the city authorities.
The case describes an innovative public service conceived and operated by a private company. The case examines how a public-private partnership, and its underlying political stakes, affect the way the service is designed and operated.
- Service Management
- Business Model Innovation
- Private-Public Partnership