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Sustainability and Advertising? Sustainability and advertising? A case study on the advertising funded bike-sharing system Oslo Bysykkel Robert Bergström Master thesis in Culture, Environment and Sustainability Centre for Development and Environment UNIVERSITY OF OSLO 2017-06-01 © Robert Bergström 2017 Sustainability and advertising? A case study on the advertising funded bike-sharing system Oslo Bysykkel http://www.duo.uio.no/ Print: Reprosentralen, University of Oslo II Abstract Bike-sharing systems are being implemented all across the world as part of cities efforts to achieve sustainable mobility. This research critically investigates the experience in Oslo of implementing a bike-sharing system funded by and operated by an advertising company. Prior research into the implications and performance of different governance models for bike-sharing is limited but will be increasingly important for any cities that consider implementing a system. This case study takes an explorative approach and uses interviews, news sources and public documents to inquire into the nature of the advertising funded governance model. The main findings are that the funding model puts limits on the physical development of the system and the possibilities of developing the system within a contract. Because of the model‘s dependence on the monetization of outdoor advertisements it also affects the accessibility of different actors to the outdoor media landscape. Key words: Bike-sharing, Bicycle, Public-Private Partnerships, Sustainable mobility, Advertisement funding, Outdoor media landscape III Acknowledgements First of all I would like to express my gratitude to all of the interviewees that agreed to be a part of this project. Without your contributions this research would simply not have been possible. I am also grateful to my academic supervisor Harold Wilhite who always provided swift and valuable feedback to any inquiries I had throughout this process. Finally I would like to thank my partner who with great patience read through much of this work and contributed to making it a more pleasant read than it would have otherwise been. Robert Bergström Oslo, June 2017. IV Table of contents 1 Introduction ............................................................................................................... 1 1.1 Purpose and research questions .......................................................................... 1 1.2 Outline ................................................................................................................ 2 2 Background ............................................................................................................... 3 2.1 Historical context ............................................................................................... 3 2.1.1 Collaborative economics ............................................................................. 5 2.2 Bike-sharing ....................................................................................................... 6 2.2.1 What is bike-sharing? ................................................................................. 6 2.2.2 History of bike-sharing ............................................................................... 7 2.2.3 History of bike-sharing systems in Oslo ................................................... 10 2.2.4 Public-private partnerships ....................................................................... 13 2.2.5 Governance Models for bike-sharing systems .......................................... 15 2.2.6 Stakeholders in bike-sharing systems ....................................................... 16 2.2.7 Governance Model in Oslo ....................................................................... 17 2.2.8 Stakeholders in Oslo ................................................................................. 18 2.2.9 Profitability of bike-sharing ...................................................................... 24 2.3 Outdoor advertising .......................................................................................... 26 2.3.1 History of outdoor advertising .................................................................. 26 2.3.2 Current context for outdoor advertising .................................................... 29 2.3.3 Advertising funded street furniture ........................................................... 31 2.3.4 Contentiousness of outdoor advertising and advertising funding ............. 32 3 Prior research .......................................................................................................... 37 3.1 Main findings on bike-sharing systems ............................................................ 37 3.2 Prior research on Oslo Bysykkel ...................................................................... 38 4 Basic premises and methodology ........................................................................... 40 4.1 Case studies and critical realism ...................................................................... 40 4.2 Background to methodological framework ...................................................... 41 4.3 Methodological framework .............................................................................. 42 4.3.1 Abductive analysis .................................................................................... 42 4.3.2 Open-mindedness ...................................................................................... 43 4.3.3 Theoretical sampling and theoretical saturation ....................................... 44 V 4.3.4 Constant comparison ................................................................................. 45 4.3.5 Coding process .......................................................................................... 45 4.4 Data collection methods ................................................................................... 46 4.4.1 Interviews .................................................................................................. 46 4.4.2 Public documents ...................................................................................... 47 4.4.3 News articles ............................................................................................. 47 5 Theoretical framework ............................................................................................ 48 5.1 The outdoor media landscape ........................................................................... 48 5.1.1 Public space and the ceremonial model .................................................... 48 5.1.2 Regimes of publicity and the advertising funded model ........................... 49 6 Results ..................................................................................................................... 52 6.1 ―Internal‖ implications ..................................................................................... 52 6.1.1 Contractual agreement ............................................................................... 52 6.1.2 Development of the bike-sharing system .................................................. 57 6.1.3 Placement and physical development of stations ...................................... 60 6.2 ―External‖ implications .................................................................................... 74 6.2.1 Cityscape aesthetics and outdoor media regulation ................................. 75 7 Discussion & Conclusions ...................................................................................... 86 7.1 From conflict to convergence ........................................................................... 86 7.2 Advertising funding – a slippery slope? ........................................................... 89 7.3 Contract dilemmas and development issues ..................................................... 92 7.4 Final words ....................................................................................................... 94 References ....................................................................................................................... 95 Appendix ....................................................................................................................... 111 VI List of figures Figure 1. Bike-sharing launches by year globally ............................................................ 7 Figure 2. Physical infrastructure of Oslo Bysykkel. ......................................................... 9 Figure 3. Standalone billboard from Clear Channel (at Lille Grensen) .......................... 65 Figure 4. State owned roads in Oslo ............................................................................... 70 Figure 5. Examples of legal public bulletin boards in Oslo (Grünerløkka) .................... 80 Figure 6. Examples of illegal usage of outdoor media (Grünerløkka) ........................... 81 VII Abbreviations and Acronyms APBS Agency for Planning and Building Services AUE Agency for Urban Environment BSS Bike-sharing system CHMO The Cultural Heritage Management Office NOK Norwegian Krone PRA Public Roads Administration PPP Public Private Partnership VIII 1 Introduction ―There is no holy grail‖ said Gabe Klein, Chicago‘s transportation commissioner, in 2012, ―but a public bike share is pretty close‖ (Kabra, Belavina, and Girotra 2015, 3). Perhaps it should come as no surprise then that bike-sharing systems (BSSs) have experienced explosive growth across the world since the turn of the millennium. From its origins as a radical
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