Despite its popularity, Tel Aviv’s Tel-O-Fun bicycle renting service is expected to begin losing money next year after two years of barely breaking even.
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FSM, which holds the concession, has registered NIS 72.6 million ($20.6 million) in revenues since the bicycle fleet’s introduction in April 2011 after an initial NIS 40 million investment. The company posted NIS 6.9 million in earnings in 2011 but profit plunged to NIS 418,000 last year and just NIS 131,000 so far this year on NIS 13 million in revenue.
The 1,650 bikes in service have retained their popularity, providing an average of 9,000 daily rides.