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"Membership has been steadily rising as well, jumping from 6,600 in early April to about 8,800 after a LivingSocial deal last week lowered the $75 annual fee to $37."

So at $75 they're making a half million. At $37 they're making a third of a million. Sounds like a terrible business decision.

Foo,

See the debate on this over at greater greater washington:
http://greatergreaterwashington.org/post/10024/ggw-debates-is-cabi-getting-a-good-deal-on-living-social/

in particular look at Mark Jordan's points (bottom of the post). It seems Alta is paid per the bike and not per the member.

Foo, you can't really view it as a business. The goal of a business is to make money. The goal of CaBi is to get more people to ride bikes. The best way to do that is to NOT make money. In fact, the more money you lose, the more people you get to bike. If the goal is to get more people to bike and DC and Arlington are willing to subsidize things, then really, they're buying bike trips. The goal now is to maximize the number of bike trips per dollar. That is now how a business works. That's how a customer works.

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