Our Ubike

The economic in our life

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The public bikes

　“ Bike sharing” has been widely used in Paris and London lately. The system does not only play a role of transport mode, it also has leisure and entertainment features.

Ideas

１、 Establishment, Operation and 　Management of the Bike Sharing System

２、 Rent from one station and return at another

３、  Reduce use of motor vehicles and improve air quality and traffic environment

４、 Elevating life and culture in the city

據點Station Xinbei City１３０  stations

Taipei city１９６  stations

Changhua６８  stations

Taichung５０ stations

The set of stations（MRT DA-AN PARK STATION for example）

１、 Beside MRT stations

站點設置策略

２、  The intersection and main road

There are 444 stations in Tainwan

Total uses： 51,906,928

Average uses for one station： 120,000

Total member cards：3,656,721

Some Questions you may not concern

One Ubike is borrowed 15 times one dayHow to manage so many bikes at the same time ?

How to calculate use times for every bikes ?

How to calculate the distance every bikes go ?

New technology、 New trend

Microprogram

　We can know the following information by microprogram system

１、 Rent information

２、 The best station users can choose

３、 Feedback defaced station immediately

The position of market／Planned market／ The shock to

industry

How to define the Ubike’s position of market?

Why do Ubike only increase 5 dollars?

What kind of shock do Ubike influence to industry?

The position of market

The market of Ubike is Oligopoly Monopoly or…？

Oligopoly、Monopoly

Establishment, Operation and 　Management of the Bike Sharing System

ＶＳTraditional management by mankind

Before we try to define it ,we must concer the range of market.

Oligopoly

AS「 Establishment, Operation and 　Management of the Bike Sharing System

」 rent of bike, Ubike is actually in oligopoly market.

Price of Ubike

As shown by the picture, the price of Ubike is less than the market price because of the

government interference.

Is Ubike really so cheap?The price between B and Price of Ubike is not disappeared. The difference is offered by the tax which government collect.

Price of Ubike

How much do government spend on Ubike？

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Is it possible that the Ubike’s position of market be another ?

Before we find the answer of this question, we concern an important condition—place. We take Bitan Scenic Area for example (so does the discussion after). There are many traditional bike-rent stations but also exist Ubike station.

因此，就「腳踏車租借」市場而言， Ubike已非獨占，而是進入了寡佔市場

How to define this kind of market ?

If we focus on the service of bike-rent, Ubike should be put on the same place with other traditional station.

Before Ubike show up, there is a Perfect Competition market in bike-rent service.

But, after the show up of Ubike, what kind of change may happen?

 Imperfect Competition marketThe model looks like Competition market.But the origin of price axis is Price of Ubike.

The suppose of model1、 The quality of bikes is the same.2、 The stations of Ubike is enough fore consumer.

As the discussion we just did. If we define different market, we can get different position of market. Also, we can get some information from our discussion.

Future trend of Oligopoly market

　 As Ubike is widely accepted and the improvement with technology of electronic pocket. The market is going to be

Competition market from Oligopoly market.

Traditional stations must do some change under the trend.

After we discuss the position of market, we are going to concern about some question just happened.

Why do Ubike increase the price easily?

Why do Ubike only increase five dollars?

From free to five dollars

Do you sense it?

The difference

• Charge five dollars for the first 30 minutesNew

• Free for the first 30 minutes Old

The decrease of consumer surplus

The short-term and long-term influence

If government increase the price again and again for not to bear the loss.

For short-term , people may still ride Ubike.

But for long-term, people may choose to walk or buy a bike.

Think about the real shock by the increase of price

From free to five dollars for first 30 minutes, what happened to the real life?

Because the quality of Ubike is restrict. People who do not want to pay five dollars will not to disturb the chance for the people who is will to pay for it.

Actually, the increase of the price effectively divide the resource.

Finally, we want to discuss the shock to other industry.

Crowding-out effect

 Public works (like Ubkie) may produce some crowding-out effect.

Suppose the output of an economy is stable, if government join the market by the public works, it will influence the market share and the pricing strategies of private department.

Crowding-out effect

The increase of government expenditure （ IS1 to IS2） will directly make the total output increase（ Y1 --> Y2）But if we concern the money market (LM curve), than the output will increase and so will the need of capital. The increasing need of capotal will increase the ” market price＝market rate(r)”of capital (r1r2)Also, it decrease the output of public production makes total output decrease（ Y2 --->Y3）。

Thus， traditional industry (bike-rent station, even bike store) must do some change for survive. Just like aforementioned, the new technology is trend.

Although there are crowding-out effect and high government expenditure, Ubike is turn around now. As the public accept is increasing, there are more and more stations. Successfully launch the life of energy saving and carbon reduction.