Item Coversheet
Town of Miami Lakes
Memorandum

To:Honorable Mayor and Councilmembers
From: Alex Rey, Town Manager
Subject:On-Demand Services
Date:7/25/2017

Recommendation:

We are seeking authority to negotiate and bringforward to the Council a contract for services with Freebee. Given that we have explored options through the RFI and have evaluated additional providers,we feel Freebee's services best meet the Town's needs.

Background:
Town's current On-demand service

The Town currently spends about $75K per year to fund the operation of a free on-demand bus service.

Users are required to book rides 24 hours in advance by contacting the receptionist at Town Hall. With only one bus, trips are booked every 15 minutes; therefore, only allowing the Town to provide about 30 trips per day (average 15 people).

1. Ride must be booked 24 hours in advance

2. Ride must begin and end within Town boundaries

3. Service is provided Monday- Friday 8am-3pm and Sundays from 10:30am-12:30pm

Currently, we do not have any restrictions on the type of users (age, disability, resident, etc.); however, the majority of the users are teenagers and elderly.

At the February 2107 Council Meeting, Vice Mayor Lama proposed exploring options to expand the service and reduce the cost of the Town's on-demand service.

The item was unanimously approved and directed staff to solicit information from industry providers in the form of and RFI. The Town received two responses from the RFI (Uber and Downtowner), that upon further evaluation did not meet the Town's needs. Subsequently, staff began conversations with two additional providers: Freebee and Lyft. Below is a synopsis of each:

Freebee:

Freebee provides service insix passenger, street legal electric vehicles. To request a ride, customers can use a free app available on iPhones and Android devices for on-demand services; flag down a Freebee vehicle; or use the call ahead reservation system. Rides are free to passengers; service is funded through a revenue sharing agreement on advertisement sales. All advertisements will be subject to the Town's approval and revenues are shared 50/50. Revenues from ads can be used to subsidize the cost of the service or as the Town sees fit.

Freebee currently provides services in the following areas: Key Biscayne, Miami Beach, Coral Gables, Downtown Miami and the Brickell area.

Marketing opportunities: Freebee will provide additional marketing opportunities to the Town at no cost.

  1. Banner ads on mobile app

  2. Onboard screen(s)

In addition, Freebee is willing to provide all marketing materials including flyers and videos to promote the service at no cost to the Town. See samples of marketing materials created for the City of Coral Gables attached and video: https://vimeo.com/221473697/872c4684b3

Economic Development tool: The Freebee app also serves as an economic development tool

  1. Supports local businesses: The Freebee app hosts a “Deals” section that allows the Town's local businesses to submit deals and specials directly to Freebee that then get posted to the app at no cost to the businesses.

  2. Points of Interest: The Freebee app includes a “Places to Bee” section that is customized to each of their service areas. The Town will have the ability to submit information about the Town's attractions including events, parks, facilities, hotels, restaurants, etc.

  3. Social Media: Nicknamed “The Hive”, the Freebee app also includes a section where selfie photos taken on the rides are hosted. These photos are also often shared on Freebee's social media sites.

  4. Brand Ambassadors: Freebee's drivers serve as Brand Ambassadors for the Town.

PTP Funding opportunity: Freebee is also in negations with the Village of Key Biscayne to run fixed routes operating ADA accessible vehicles in order to qualify for PTP funding.

Special Schedules: In addition, Freebee is also willing to explore the option of running fixed routes between the Town's two major commercial areas (Parkside Corporate Center on the westside and the Industrial Park on the eastside) to restaurants/shopping centers during lunch hours to reduce the number of vehicles on the road during this time.

Events: Freebee is also willing to provide special pricing to use their services during special events. Currently the Town uses its Moovers to transport event attendees on the following events: senior socials and forums and July 4th.

Lyft:

Lyft operates a ridesharing platform and mobile application which allows users to request a ride from one location to another. The transportation services are provided by authorized drivers using their own vehicles. Ride rates and wait times are subject to prime-time surcharges and driver availability. Lyft currently operates nation-wide and has agreements with local governments, transportation agencies and private companies. Lyft provides transportation solutions through its Concierge Service, and Lyft Codes programs described below:

Lyft Codes: With the Lyft Code service, the Town has the ability to restrict geographical boundaries or points and service hours. Riders would book their own rides via the mobile app; the code applies a negotiated discounted rate when rides are booked within code criteria (boundaries and hours). Codes can also be used for special events.

Concierge: Telephone-based reservation system, as an alternative pathway for people who don't have a smartphone to request a Lyft ride. Concierge, a third-party online portal, allows the Town to request rides on behalf of passengers. Similar to how the Town's on-demand service currently works, passengers would contact Town Hall and provide ride information that would then be inputted into the reservation system; a Lyft driver will be matched to provide the ride. Rides are able to be requested up to 7 days in advance.

In summary, several opportunities exist to provide potential circulator, on-demand, and first and last mile connections between existing transportation stops, parks, community centers, office/industrial parks, and other points of interest with the intent to ease congestion, and address limited parking availability during peak hours and at select special events.

See attached table of side-by-side comparison.

ATTACHMENTS:
Description
RIde Sharing RFI
Downtowner RFI Submission
Uber RFI Submission
Freebee Coral Gables Marketing Sample
Freebee Rates and Services Addendum- Key Biscayne
Lyft Concierge Brochure
Lyft General Services Agreement
Side-by-side comparison