Connected Bicycles—State-of-the-Art and Adoption Decision

This paper provides a snapshot of the current state-of-the-art on connected bicycles as discussed in the published literature as well as real-world implementations. We discuss several facets of connected bicycles, including those associated with quantified-self, synergies with social media, network effect, environmental sustainability, big data, among others. We then consider extensions and what might be possible in this general area based on existing and proposed systems as well as extant literature. We also discuss some of the issues and challenges that are associated with connected bicycles. A connected bicycle's utility increases with the number of other connected bicycles in its immediate vicinity. Through a Hotelling model, we consider the price and profit dynamics for a connected bicycle retailer. Our results indicate that the equilibrium price of a connected (regular) bicycle increases (decreases) with associated connected bicycle network effects. The unit connectivity cost for a connected bicycle has a direct effect on regular bicycle price. We derive expressions on when it is profitable for a retailer to switch from regular to connected bicycles as well as when the lowest profit levels are reached.