Long Beach's $25.7M BikeShare Overhaul Comes With A Controversial Change

LONG BEACH, CA — Long Beach is preparing to introduce thousands of electric bicycles under a $25.7 million overhaul of its BikeShare program, but the transformation comes at a cost for the local company that has operated the service for nearly a decade.

The City Council voted 5-3 on Oct. 6 to award a contract to San Francisco-based Drop Mobility California LLC, replacing longtime operator Pedal Movement despite opposition from business organizations, community groups and residents.

The agreement authorizes $23,346,518, plus a 10 percent contingency of $2,334,652, bringing the maximum contract value to $25,681,170. It covers an initial three-year period, with options for two additional one-year extensions.

According to the city's staff report, the modernization will introduce pedal-assist electric bicycles, charging infrastructure and new technology while retaining city ownership of the bicycles, stations and equipment.

Thousands Of Electric Bikes Planned

Drop Mobility is expected to introduce 700 electric bicycles during the first year and integrate 150 existing conventional bicycles into the new system. Expansion during the second and third years could increase the fleet to 2,000 electric bicycles and 500 converted conventional bicycles, supported by 1,600 charging docks and 530 station hubs providing 6,410 designated parking spaces.

The city says the expansion would help prepare Long Beach for transportation demand associated with the 2028 Olympic and Paralympic Games. The existing program recorded more than 79,000 rentals in 2025. Its current fleet consists of approximately 480 operational conventional bicycles, with another 250 awaiting maintenance.

The new electric bicycles will include GPS tracking, swappable batteries and docking technology, while the city's BikeShare for All program is expected to continue offering discounted access. Eligible residents currently pay $5 annually for three hours of daily riding.

A Contested Contract

The award drew criticism because it replaces Pedal Movement, a Long Beach company that has operated the BikeShare system since 2017. Four companies submitted proposals. According to the city's revised procurement review, Drop Mobility received a final evaluation score of 91 percent, compared with Pedal Movement's 89 percent, which included a 10-point local-business preference.

Pedal Movement challenged the selection process, raising questions about bidder qualifications and the evaluation criteria. The city's purchasing agent rejected the protest June 29, finding no basis to overturn the decision. Opposition also came from the Long Beach Area Chamber of Commerce, Long Beach Forward, Creative Class Collective and the Bixby Knolls Business Improvement Association.

In written comments submitted to the council, the organizations emphasized Pedal Movement's local employment and longstanding community partnerships, while some questioned whether the procurement process had adequately accounted for the incumbent's experience.

City officials defended the selection process as fair and maintained that Drop Mobility offered the strongest overall proposal.

The existing contract supports 19 full-time positions, while Drop Mobility has proposed 16 local full-time positions during its first year. The incoming operator has committed to prioritizing interviews for current BikeShare employees and establishing local operations, including relocating its Southern California headquarters to Long Beach.

How Will The City Pay For It?

The $25.7 million figure represents the maximum authorized contract amount, not a guaranteed payment to the company. According to the staff report, the first year's $2.9 million capital investment will be funded through Proposition A transportation funds.

The city has also applied for a $5.136 million grant through the California Transportation Commission's Active Transportation Program to support capital investments during the second and third years. That funding has not been confirmed in the documents.

BikeShare generated $210,615 in revenue during 2025. Drop Mobility projects ridership could increase by as much as 500 percent by the third year if the full fleet is deployed, although that estimate is not a guaranteed outcome. Additional rider revenue would help offset operating costs, with Proposition A funds covering eligible expenses not met by program revenue.

What Happens Next?

In a separate 7-0 vote, the council approved extending Pedal Movement's existing contract through Dec. 31, 2026, allowing the company to maintain service during the transition. The extension increases the existing contract ceiling by $780,545, including contingency, to $8,261,369.

According to the extension staff report, Drop Mobility is scheduled to assume responsibility for the existing bicycle system Jan. 1, 2027, with the new electric fleet expected to begin entering service in early 2027.

The city says the transition is designed to keep BikeShare operating without interruption while replacing its aging fleet with a larger electric network.