Wealth Transfers and Citi Bike

One aspect of today's economy is that startups can attract billions of dollars while losing large amounts of money year after year. The result is a kind of wealth transfer from investors to consumers, as companies like Uber subsidize cheap taxi service by running billion-dollar losses quarter after quarter. It's not all fun and games, of course—there has been a rash of taxi driver suicides as Uber destroys their ability to make a living. But for consumers, it's a hell of a ride.

Anyway I'm a little worried Citi Bike might be engaged in the same kind of game. There is a program called "Citi Bike Angels," which rewards users for picking up bikes at stations that have too many bicycles and dropping them off at stations with too few. In a couple of months I've racked up nearly 100 points. That's earned me several free weeks of Citi Bike membership as well as a few free day passes.

But that's peanuts. When I hit 250 points annually, I get a free "Citi Bike Angels" pin. And at 500 points I get a coveted white Citi Bike key (the normal ones are blue). They're giving this stuff away like candy! I'm going to have a pin before long (unfortunately the Citi Bike year runs from April 1 to March 31, so my annual points will reset before I get a pin based on my current points). And a white key can't be far behind.

I mean, I'll take it. I just hope the investors who are subsidizing this bounty know what they're doing.