Why bike lanes benefit business

Businesses faced with the prospect of a cycle lane outside their front door are often fearful that they will be bad for business. But studies show that’s not the case. Ben Strang and Erin Gourley report.

An urban myth has taken hold in some parts of Wellington that bike lanes are bad for business. It happened in Island Bay and it’s happening again in Newtown.

A group of Wellington businesses – most of them car and car-related companies – have taken the Wellington City Council to court trying to halt the construction of the Newtown cycleway.

Newtown florist Laura Newcombe said she would have to close her business of 28 years.

But those sorts of concerns are not backed up by dozens of case studies – both from New Zealand and abroad.

An analysis of more than a dozen studies looking at the impact of improved cycling and pedestrian infrastructure on business shows a largely positive impact on earnings.

In some cases, there was no impact on business, but in the majority of cases from more than three dozen cities, earnings increased after the introduction of cycling lanes and removal of street parking.

Caroline Shaw, an associate professor at Otago University’s Department of Public Health, said it is understandable that business owners like Newcombe would fear change.

‘‘But I think they can also be really reassured by what we know now about the experience of putting bike lanes in and also improved pedestrian infrastructure,’’ Shaw said.

A review by the University of California looked at 23 different studies of the impact cycling and pedestrian infrastructure had on business, with most finding positive impacts on both earnings and employment.

Studies that only surveyed businesses showed worse effects on business, but studies that looked at objective data such as business earnings and tax records showed positive effects after cycle and pedestrian infrastructure was built.

The University of California study also looked at whether people who cycle or walk spend a different amount to people who drive.

‘‘They found consistently that people who cycle and walk to a destination have no difference in terms of their monthly spending,’’ Shaw said. ‘‘That’s important, because often people fear that the taking away of car parks will mean that people don’t come, and that cyclists don’t spend money.’’

Green Party MP Julie Anne Genter, who used a cargo bike as her primary means of transport, said she understands the fear of business owners, especially during the Covid-19 pandemic.

‘‘But we’ve seen around theworld, the exact same fear and attitude from retailers assuming that taking away space for private cars will hurt their business,’’ Genter said.

‘‘In truth, making it easier for people to walk and cycle and take public transport tends to increase foot traffic and bring a lot more people into those businesses, especially if it’s retail or eateries.’’

A study of 2.4 kilometres of Bloor St in Toronto, where bike lanes were introduced and 136 on-street car parks were removed, showed the number of customers at businesses increased, and there was a slight positive economic impact.

In several cases in San Francisco and Oakland, full driving lanes were removed and cycle lanes were built, and the economic benefit was positive.

In Minneapolis, a 5.2km stretch of North Second St had a whole parking lane removed and the width of driving lanes reduced, and retail businesses saw a boost to profits, while employment rose in eateries.

Genter said with people moving from cars to other forms of transport, they often have more money to spend.

‘‘Cars are really expensive,’’ Genter said. ‘‘We import all of our cars and all of the fuel to run them, so if we can make it easier for more people to get around without needing a car peoplewill have more money to spend in their local businesses.

‘‘Everywhere we’ve done this in New Zealand recently, it has benefited those businesses. Karangahape Rd for example, in Auckland, retail sales are way up since they put in the cycleway.’’

University of Auckland environmental sociologist, Dr Kirsty Wild, said studies in New Zealand and North America show an ‘‘insignificant or positive impact on retail businesses’’ when parking spaces decrease.

‘‘With these changes it’s better to do it fast, as it’s hard for businesses to have projects that drag on and on,’’ Wild said.

‘‘You can understand where concerns come from, as retail shops have slim margins. But businesses consistently underestimate the spend by cyclists, bus users, and pedestrians.’’

A study by Auckland City Council looked back at their Fort St upgrades, which reduced driving lanes and made the street more attractive to pedestrians and cyclists.

It found pedestrian numbers increased by 47% during peak hours, business had been boosted, and it had led to significant investment in the area.

Wild said people now wanted to linger in the area, with retail spend increasing 47% and hospitality seeing a 429% increase in spending.

‘‘The reality is that parking will be more and more rationed as populations increase and we take climate action,’’ Wild said.

‘‘Moving parking spaces is asking people to walk two minutes around the corner for climate change.’’