Five years after having taken over the operation of the Vélib’ network from JCDecaux, the company Smovengo, a consortium of four companies (Fifteen, Indigo, Mobivia, Moventia), continues to make people talk in Île-de-France. On Tuesday June 20, the SAVM, the public union in charge of shared mobility in the region, published an audit report on the
Vélib’ for the period 2018-2022.
According to the press release published by the mixed syndicate, the deficit of the Smovengo company is estimated at 113 million euros but the service is now “profitable” and its sustainability “is not at stake”. Nevertheless, faced with the observation made in the report (Bikes out of service or in poor condition, empty or on the contrary full stations) the union reminded Smovengo of its obligations. A communication that was not to the taste of the company which wanted to react in the wake of the voice of its president, Stéphane Volant.
You seem to have been stung by the declarations of the SAVM, you do not agree with the conclusions of the published audit?
Several things bother me in the communication that was made by the SAVM and in particular by its president, Sylvain Raifaud. First of all, I find it quite strange that this press release was made unilaterally. We are partners in the Vélib’ project, this should have been a shared press release. But let’s move on. I am especially surprised by the announcements that have been made but also by the way in which they are commented on.
You do not agree with the reading of the audit?
First, Mr. Raifaud announces that the service is now profitable, but the audit does not include the figures for 2022 for a very simple reason: these figures are still with the auditors! And the 2023 budget has been built to within 300,000 euros. With this, we do not repay our debt.
But above all the audit does not say that Smovengo has become profitable. It is clearly written that “the economic model of the contract is not balanced”. We have invested 209 million euros since the origin of the project. The audit advances a profit of 95 million euros over the period 2022-2032. Which means a loss of 114 million at the end of our contract.
Mr. Raifaud reacts as a responsible for a public authority, which can push back its debt “ad vitam aeternam”. But for a company like ours, such a debt ratio no longer allows us to invest and continue to move forward.
This is precisely what the SAVM is asking you to invest in the “insufficient” quality of service, to deploy more staff for regulation…
First of all, I would like to remind you that I am not a public decision-maker and that I do not decide on orientations. I only make suggestions. But as for how to improve the service, the management of the bikes and the personnel, that is for me to speak and no one else.
For the insufficient quality of service, this is an observation that we have also made. The beginnings of the contract were laborious, we had to completely recreate a service with the change of operators. And we have already made great efforts and important adaptations to improve the service. We now have doubled resources, for regulation and maintenance, compared to 2018.
However, between regularly unusable bicycles, empty or, on the contrary, overloaded stations… Many users still complain. How can these difficulties be explained?
We have an overheated system. It is also the ransom of glory. We have 400,000 subscribers and around 180,000 uses per day, for 19,000 bikes. A bicycle is used between 4 and 7 times a day. But for some days it can be more than 20 times. If only 5% of users take a Vélib’in rush hour, that is enough to empty some stations when others are overflowing.
I would like to note that the SAVM asks for more regulation. But we are achieving the objectives on this point, moreover we have never had any penalties, despite the tides of users that we see every day.
But it must be understood that the network is undersized. The Vélib’, despite all its detractors, is a huge success, always more encouraged by the coronapists, by global warming which pushes people to cycle, and by the appetite for the electric bike. And this growth will increase further with the end of self-service scooters.
What solution would you suggest to deal with these problems?
You have to invest. For example, in New York, the world’s second largest bike sharing network (after Paris), they have the same number of bikes for half the miles traveled. I think that’s where we need to go: Double the number of bikes. And do the same with stations.
We signed an agreement with the SAVM last December, we are buying 10,000 more bicycles by 2024, to have 3,000 more in permanent operation, they are installing 1,500 terminals (the devices for attaching and recharging Vélibs in station). The bikes are ordered, I paid the installments. I am now waiting to see the bollards.
But these investments require funds, where do you think you will find them?
It’s up to the SAVM to find them. I think they have two solutions to increase the staffing. This can go through taxes, but I doubt that this is what elected officials want to do. And the situation is already difficult for many people.
I rather suggest that they increase the price of subscriptions, as the audit also recommends. But the Vélib’ is an extremely popular system in every sense of the word. So we don’t want to touch social tariffs, which offer subscriptions at 1.50 euros per month. But rather gradually and significantly increase the prices of “premium” subscriptions. Those for VAE, at 8.5 euros per month, a few extra euros. We could also adapt the fee schedule to use. This is another solution.
It’s not easy to get this across to users…
I understand. But I say to Vélib’ users: 400,000 of you use it, and it continues to climb. You are not so masochistic, nor stupid. If you use it, it’s because you like it and find your interest in it.
We now have the first network of self-service bicycles in the world, we can be proud of it. And you are right to think that the service is not up to par today. But we can’t do better without raising the tariffs reasonably to enable the system to be doubled and make it viable.
The Vélib’, just like the RATP or the SNCF, is always full at peak times. But damn that system is good. My goal today is to save this system. For our 400,000 customers and my 500 employees.