Bikes or Bust? Analyzing the Impact of Bicycle Infrastructure on Business Performance in San Francisco

Abstract

Transportation agencies at the local, state, and federal levels in the United States (U.S.) have shown a growing interest in expanding bicycle infrastructure, given its link to mode shift and safety goals. These projects, however, are far from universally accepted. Business owners have been particularly vocal opponents, claiming that bicycle infrastructure will diminish sales or fundamentally change the character of their neighborhoods. Using the case of San Francisco, this research explores the relationship between bicycle infrastructure and business performance in two ways: change in sales over time, and a comparison of sales for new and existing businesses. An ordinary least squares regression is used to model the change in sales over time, isolating the effect of location on bicycle infrastructure while controlling for characteristics of the business, corridor, and surrounding neighborhood. Through a series of t-tests, average sales for businesses that pre-date bicycle infrastructure and for those that opened after the installation of such projects are compared. Ultimately, the research suggests that location on bicycle infrastructure and changes in on-street parking supply generally did not have a significant effect on the change in sales, with a few exceptions. Businesses that sell goods for the home or auto-related goods and services saw a significant decline in sales when located on corridors with bike lanes. New and existing businesses generally had similar sales, though not across the board. New restaurants and grocery stores had significantly higher sales than their existing counterparts, suggesting bicycle infrastructure may attract more upmarket businesses in those industries.