Estimation question

Estimate the number of bicycles required to start a bike sharing operation in a big city.

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What this question tests

Tests structured estimation of fleet size using population, adoption rate, and utilization assumptions for a shared mobility service.

How to approach it

  1. State the goal: estimate bicycles needed to launch bike-sharing in a big, dense city of about 1 million people.
  2. Estimate daily potential riders: assume 5% of the population rides on an average day, about 50,000 riders.
  3. Estimate rides per bike per day: assume each bike supports about 4 rides a day given rebalancing and downtime.
  4. Compute base fleet: 50,000 rides divided by 4 rides per bike, about 12,500 bikes needed to meet daily demand.
  5. Add a buffer for maintenance, rebalancing, and peak-hour clustering: assume 20%, bringing the total to roughly 15,000 bikes.
  6. Sanity-check against known real bike-share fleet sizes in comparable cities, noting this ignores seasonal and weather variation.

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