Buying in the open: renewing Mexico City’s cycle hire scheme
Mexico City Government,
5 minute read
Mexico City has used early engagement with suppliers to make sure its bicycle hire scheme has a sustainable future.
Summary
- early engagement with suppliers encourages innovation
- it’s possible to share both detailed requirements and broader outcomes
- using open data builds public trust and encourages participation
- early engagement with suppliers encourages innovation
- it’s possible to share both detailed requirements and broader outcomes
- using open data builds public trust and encourages participation
The problem
Notorious for its grinding traffic and smog-filled air, Mexico City seemed an unlikely place to launch a bicycle hire scheme back in 2010.
But today, it would be hard to imagine the capital without its fleet of little red “EcoBicis’ weaving between gridlocked cars and buses.
In October 2019, the city announced its intention to expand the scheme and increase the number of bikes from 6,500 to 10,000 within 5 years.
The problem was that since its inception, EcoBici had been run by just one supplier and a decade on, much of its infrastructure needed updating or replacing.
Private companies including Uber and Dezba had also arrived on the scene, offering residents shiny new e-bikes and motorised scooters via slick smartphone apps.
City officials soon realised that they couldn't simply renew the current contract and hope for the best.
Instead a new procurement approach was needed, to both find a new supplier and explore how to improve the service.
Notorious for its grinding traffic and smog-filled air, Mexico City seemed an unlikely place to launch a bicycle hire scheme back in 2010.
But today, it would be hard to imagine the capital without its fleet of little red “EcoBicis’ weaving between gridlocked cars and buses.
In October 2019, the city announced its intention to expand the scheme and increase the number of bikes from 6,500 to 10,000 within 5 years.
The problem was that since its inception, EcoBici had been run by just one supplier and a decade on, much of its infrastructure needed updating or replacing.
Private companies including Uber and Dezba had also arrived on the scene, offering residents shiny new e-bikes and motorised scooters via slick smartphone apps.
City officials soon realised that they couldn't simply renew the current contract and hope for the best.
Instead a new procurement approach was needed, to both find a new supplier and explore how to improve the service.
EcoBici has transformed the image of bicycles in Mexico City. Once considered recreational, the bike is now a true alternative mode of transport.
The approach
The city authorities began by working with the Open Contracting Partnership (OCP), a non-profit organisation devoted to procurement reform.
Through its 'Lift' project, OCP were able to share examples of best-practice from across the world, including the city of Boston which had used a new contracting approach to improve its own bike sharing system.
After a number of workshops a strategy emerged:
- announcing the EcoBici opportunity publicly and to a global audience
- sharing data. including financial and usage statistics via a dedicated website
- designing any new service together with suppliers and the public
On 16 December 2019, these aims and the background to the project were explained at a press conference streamed online.
Suppliers were told that all the information about the project would be shared on a dedicated website, through which they could post any questions and receive answers.
Any old-fashioned ideas about taking officials out to lunch or ‘leveraging relationships’ soon evaporated.
A map showing the planned expansion of the EcoBici scheme in Mexico City. © Mexico City Government
The next day, a supplier questionnaire was posted on the site, open to any interested company. It was made clear that responses were voluntary and did represent any commitment from the city to work with a supplier.
As well as being asked how they would solve the core requirements of the project - expanding EcoBici by 40%, integrating with the city’s smartcard system and so on - suppliers were asked more open-ended questions:
- how might we improve the user experience of EcoBici?
- what new sources of income could be used to fund the scheme?
- how could a shared income model work, allowing for fair profit levels?
This encouraged respondents to think more broadly about the project and contribute a range of ideas.
The city authorities began by working with the Open Contracting Partnership (OCP), a non-profit organisation devoted to procurement reform.
Through its 'Lift' project, OCP were able to share examples of best-practice from across the world, including the city of Boston which had used a new contracting approach to improve its own bike sharing system.
After a number of workshops a strategy emerged:
- announcing the EcoBici opportunity publicly and to a global audience
- sharing data. including financial and usage statistics via a dedicated website
- designing any new service together with suppliers and the public
On 16 December 2019, these aims and the background to the project were explained at a press conference streamed online.
Suppliers were told that all the information about the project would be shared on a dedicated website, through which they could post any questions and receive answers.
Any old-fashioned ideas about taking officials out to lunch or ‘leveraging relationships’ soon evaporated.
A map showing the planned expansion of the EcoBici scheme in Mexico City. © Mexico City Government
The next day, a supplier questionnaire was posted on the site, open to any interested company. It was made clear that responses were voluntary and did represent any commitment from the city to work with a supplier.
As well as being asked how they would solve the core requirements of the project - expanding EcoBici by 40%, integrating with the city’s smartcard system and so on - suppliers were asked more open-ended questions:
- how might we improve the user experience of EcoBici?
- what new sources of income could be used to fund the scheme?
- how could a shared income model work, allowing for fair profit levels?
This encouraged respondents to think more broadly about the project and contribute a range of ideas.
Collaboration and dialogue with the market is essential. We want to move from a “them and us” relationship between government and suppliers to one built on trust.
The results
As well as the incumbent supplier, the city received responses from eight companies, six from Mexico, one from Brazil and one from Spain.
Three of the Mexican companies formed a consortium, allowing them to compete with multinationals operating similar schemes in Paris, Barcelona and Sao Paulo.
Included among the responses were a range of suggestions to help improve the service. These included:
- 25 new bicycle designs, including hybrid and electric bikes
- new mobile app features including health data and bike mapping
- a revised finance model combining sponsorship and government subsidies
One thing all suppliers agreed on was the need for a multi-year contract, a reflection of the investment and time needed to implement a scheme of this scale.
As well as the incumbent supplier, the city received responses from eight companies, six from Mexico, one from Brazil and one from Spain.
Three of the Mexican companies formed a consortium, allowing them to compete with multinationals operating similar schemes in Paris, Barcelona and Sao Paulo.
Included among the responses were a range of suggestions to help improve the service. These included:
- 25 new bicycle designs, including hybrid and electric bikes
- new mobile app features including health data and bike mapping
- a revised finance model combining sponsorship and government subsidies
One thing all suppliers agreed on was the need for a multi-year contract, a reflection of the investment and time needed to implement a scheme of this scale.
Next steps
At the time of writing, the city authorities were receiving answers to a second questionnaire posted in June 2020.
This time, more detailed questions were asked - for example, how long would suppliers need to prepare a full technical proposal and build prototypes?
Again the principles of collaboration and early engagement were being used to set realistic deadlines and avoid any potential bumps in the road for EcoBici mark II.
For the latest on the project visit the city's EcoBici site. For more on the Lift initiative visit the OCP blog.
At the time of writing, the city authorities were receiving answers to a second questionnaire posted in June 2020.
This time, more detailed questions were asked - for example, how long would suppliers need to prepare a full technical proposal and build prototypes?
Again the principles of collaboration and early engagement were being used to set realistic deadlines and avoid any potential bumps in the road for EcoBici mark II.
For the latest on the project visit the city's EcoBici site. For more on the Lift initiative visit the OCP blog.