Scaling Innovation in Shared Space

Written By Cityfi

Guest Editor: Marla Westervelt

In the public realm, permission is not just a legal requirement, but also a strategic asset and a design constraint. From micromobility and delivery tech, to climate infrastructure and generative AI, the difference between a pilot and a permanent presence often comes down to one question: who granted you the right to be here?

At Cityfi, we see this tension unfold across startups, agencies, and civic systems. In public space, legitimacy is not something you ask for once. It is something you build into your product, your operations, and your relationships. Yet many companies still treat regulation as an afterthought, and many governments lack the tools to engage new ideas and thus default to “no.”

This month we explore what it takes to responsibly launch new products that depend on public infrastructure, trust, or the right-of-way. From permitting and pilots to procurement tools, data standards, and governance models, we examine how both public and private actors can reduce friction and build systems that last.

Across these stories runs a shared truth: this is not just a startup issue or a city issue. It is about the messy and vital middle ground where transformation meets implementation, and where the most meaningful change begins.

We hope this issue offers insight, provocation, and a few new ideas for building alignment in complex public systems. We are here to help both government entities and private sector change-makers bridge these divides and help forge winning solutions for the public. Let’s have a conversation to kickstart this process!

Leading with “Yes”

By Karina Ricks

I’ve often said that if I could find the time to write a book about what I learned over decades in government agencies, it would be about the importance of trying to say “yes” before “no.”

Saying “no” is easy - particularly in government. “No” is status quo. “No” is risk avoidance. “No” takes less time, less work, and less struggle. “Yes” is hard. “Yes” often means change. “Yes” requires navigating uncharted territory, and calls for new processes, permissions, and partnerships. “Yes” takes time, work, and guts.

I understand and empathize. I’ve been there. Our phenomenal public servants are overworked, overlooked, and underpaid. With too many tasks and too few resources, they are forced to operate within systems that are typically rigid and calcified - built for compliance, not creativity. The effort required to contort these systems for the novel and new might very well rob from delivery of the expected and essential. So we say “no.” “No we can’t,” “No we won’t,” and “No we don’t know how.”

Government should be risk averse - that generally serves us well. But when caution becomes inertia, we risk missing the very innovations that could make services more effective, systems more equitable, and infrastructure more resilient. How many transformative ideas or efficiency-enhancing solutions have died on the doorstep of “no?” Too many.

I am not advocating for blind acceptance or reckless adoption just to join the “yes” bandwagon. But I’ve learned that when we shift our mindset to “How might we…?,” we find heretofore unseen pathways and low-risk starting points. We find ways to responsibly experiment, learn, and evolve. In the process, we uncover new ways to deliver mobility, improve safety, streamline systems, and serve communities. We have found unexpected partners, untapped allies, and new advocates for change.

Shifting into “yes gear” requires leadership, support, and structural change. But it’s worth it to build more agile institutions, more responsive government, and more rapid results and meaningful progress.

Permits Are Prototypes

Image Source:  Pittsburgh Post-Gazette

By Camron Bridgford

Mention government permitting to the average person, and you’ll likely get a glazed-over look. Bureaucratic red tape, delays, and rigid rules are the images that come to mind.

But in some ways, that’s a sign permitting is doing its job. When it works well, no one notices. A seamless sidewalk stroll, lunch at a streatery, or a smooth scooter ride through an intersection might feel effortless, but each of those experiences depends on smart, intentional permitting that shapes how we move through and use public space.

Permitting often gets a bad rap, but it doesn’t have to. It’s not just a hurdle to clear or a stamp of approval. And it doesn’t have to mean something is permanent. As cities face rapid changes in technology, mobility, and infrastructure needs, permitting should be seen as a strategic tool that allows governments to test new ideas, adapt quickly, and learn in real time.

One of the clearest examples of this came during COVID. Faced with an urgent need to rethink public space, cities launched pop-up slow streets, streateries, and curbside delivery zones almost overnight. These temporary changes helped keep businesses open and people safely distanced. Many of them worked. After the immediate crisis passed, cities made them permanent, reshaping streetscapes and setting a new standard for flexible urban design. (See my March 2021 blog post for more on this.)

Permitting can serve this same role outside of a crisis. For example, piloting a bike lane or curb extension through a temporary permit gives cities a low-cost way to test functionality, collect data, and refine plans before making major capital investments. It also opens space for community engagement, both to explain what’s happening and gather real feedback from residents and businesses.

At its best, permitting is a bridge between innovation and permanence. It provides cities and partners, from local businesses to micromobility operators, a shared framework for experimenting responsibly and earning public trust.

When used well, permits are not barriers. They are building blocks for better policy, smarter design, and stronger partnerships. In a rapidly evolving urban landscape, they help cities stay agile, accountable, and aligned with the people they serve.

Permission is the Product

Image Source: City of Davis

By Marla Westervelt

I’ve always been told that the most important thing in any job is who your boss is. So when I got an email the Friday before I started at Bird letting me know I’d been reassigned to a new boss I hadn’t even met, I panicked. Had I made a horrible mistake?

It was September 2018, and Bird was fresh off a high-stakes standoff with its hometown, Santa Monica, California. Just a month earlier, the city had announced its selections for a new one-year scooter pilot, and Bird hadn’t made the cut. For most companies, missing out on a small pilot in a 13-square-mile beach town might not seem existential. But this was different. Santa Monica was the birthplace of Bird, the birthplace of the entire scooter category. Getting kicked out would have sent a dangerous signal to investors: Bird couldn’t play by the rules, even in its own backyard.

So Bird responded the way only a hyper-funded startup can. PR campaigns. Protest rallies. Political consultants. Intense lobbying. A last-minute save. Eventually, the city relented. Bird got a permit.

Internally, the executive team did what smart teams are supposed to do after a close call. They tried to learn from it. They asked, how do we make sure this doesn’t happen again? They came up with a bold answer. Let’s make cities our number one customer. But how do you prove that when your actual customers are riders, and your revenue is tied to rides?

At Bird, the answer was structural. They moved the entire government partnerships team under product. Bird was a product-led company, and the idea was that putting the government team inside the product team would ensure city needs were built directly into the product and operations.

Which is exactly where I landed on day one, reporting directly to the Chief Product Officer.

In theory, it was an elegant solution. In practice, it was water and vinegar. The two teams spoke different languages. Product moved fast and measured success in feature adoption and ride volume. Government partnerships moved deliberately, building trust and navigating policy nuance. On paper, we had aligned. Operationally, we were worlds apart.

Less than two months later, we re-orged again, pulling the teams back apart. We still used the language - cities are our best friends. But the business kept optimizing for rides, not relationships.

That was my first real lesson in what happens when civic systems collide with startup scale. It wasn’t about bad intentions. It was about misalignment. About saying the right things, but building the wrong structures. About treating permission as a narrative, not a product dependency.

Most startups chase product-market fit. But in civic space, that’s not enough. You can’t scale in public without a strategy for public legitimacy.

That’s why we use a different framework:  Product - Permission - Market Fit.

At Cityfi, we help startups and public leaders build for it. We translate ambition into alignment. We design for legitimacy, not just demand.

Because in shared space, on streets, sidewalks, curbs, and corridors, permission isn’t a checkpoint. It’s infrastructure.

And the smartest companies build it in from day one.

How Start-Ups Can Get Civic Fit:  3 Essential Strategies

Image Source:  City of Charlotte

By Monique Ho

Startups deploying in public space face a tricky reality: building a great product alone isn’t enough. You need to be civic fit by aligning with the expectations of regulators, communities, and the realities of operating on the ground. Success in public space requires more than demand for your product. Startups must earn trust from regulators, meet the needs of communities and stakeholders, and prove they can operate effectively on the ground. Being civic fit means aligning your product, operations, and relationships to meet these unique demands and responsibilities. Without these, even the most promising ideas can stall. 

In this founder-facing guide, I outline three essential strategies for scaling responsibly in public space.

1. Prioritize Civic Fit from Day One

Civic fit means your product doesn’t just work technically. It works within the constraints, cultures, and priorities of the cities and communities you aim to serve. This includes understanding local regulations, aligning with public goals like equity and safety, and respecting shared-use norms. 

Too often startups approach cities as sales targets rather than as long-term partners. Real civic fit requires co-designing, deep listening, and making adjustments based on the community’s lived experience, not just exporting what worked in a pilot city. 

Founders should invest in building relationships with local stakeholders early, including neighborhood groups, elected officials, and advocacy organizations. This might mean attending community meetings, scheduling one-on-one introductions with elected officials, and partnering with advocacy organizations on shared goals or events. If a city doesn’t see how your solution aligns with its priorities, or improves life for its residents, it will be much harder to gain traction.,

2. Design Pilots with Cities to Learn and Build Trust

Pilots with cities should not be treated as mere soft launches for your product. When done well, a pilot creates a structured space to prove both impact and intent. It also serves as a critical early phase for building trust, establishing credibility, and demonstrating your commitment as a partner. A successful pilot depends on shared goals, clear metrics, transparency, and ongoing collaboration with public agencies. It also requires meaningful investment, both in refining the product and in developing collaborative relationships with public agencies. Companies should build in room for iteration, invite honest feedback, and treat public partners as co-creators. This means showing up to community meetings, publishing open data, and documenting and sharing lessons learned. The goal isn’t just to check regulatory boxes. It’s to earn a path to scale by demonstrating alignment, responsiveness, and follow-through. 

3. Don’t Underestimate Operational Readiness

Early-stage companies often focus so heavily on product-market fit that they overlook what it takes to actually operate in public space. Operational readiness means being prepared to deliver your product or service reliably and safely, in a way that aligns with public goals and minimizes extra work, risk, or confusion for the city. Cities don’t just need cool tech. They need trusted, reliable partners who can maintain, adapt, and troubleshoot in real time. 

Whether it’s keeping shared vehicles charged and in working order, managing technology upgrades efficiently, or responding to resident complaints, startups must prove their ability to deliver consistent, accountable service at scale without disruption. Reliability matters more than novelty.

Scaling in public systems means playing the long game. Cities are risk-averse for good reason and because of this, public trust is earned slowly. 

Companies who succeed here do more than innovate. They listen, adapt, and treat public space with care.

Cityfi Kicks Off CCAMbassador

By Evan Costagliola

On July 2, I had the chance to represent Cityfi at the kickoff of our first European Commission-funded project: CCAMbassador, short for Cooperative, Connected, and Automated Mobility (CCAM) Assessment and Stakeholder Dedicated and Operational Awareness Raising. Led by ERTICO and supported by a consortium of 22 partners across 14 EU Member States, this initiative focuses on building public awareness and trust in CCAM while giving authorities and operators the tools they need to support responsible deployment across Europe.

This is a major milestone for Cityfi’s European work. While we have a strong track record in automated mobility, CCAMbassador marks our first Horizon-funded initiative and our first CCAM-focused project. It reflects growing international interest in how emerging technologies can be deployed with public trust, safety, and accountability at the center.

Cityfi will advise on several work packages through the project’s close in May 2028. Our primary focus is the development of a citizen awareness toolkit that captures the tools, messages, and methods needed to elevate public understanding of CCAM technologies. The parallels to our Knight Foundation-funded AV Guide for Cities are clear, and we are eager to build dialogue and learning between mobility leaders on both sides of the Atlantic.

More than just a research project, CCAMbassador represents an opportunity to translate lessons from our North American public trust work into a European context, helping shape not only the technology but also the civic systems that enable it to thrive.

As automated mobility continues to evolve, we believe legitimacy must be designed in from the start. We look forward to sharing insights from this work, building global connections, and helping ensure that innovation in CCAM earns the public trust it needs to succeed.

The Cityfi Cluster #4

By Ryan Parzick

Ever play the New York Times Connections game? Here is our own Cityfi version for you to play! If you haven’t played before, that’s OK. The rules are simple - but hopefully, solving the game is not! The challenge: group the 16 words into 4 groups of 4. Each group has a unifying theme. You get one shot, so make it count. If you think you have the correct solution, please email us with your 4 groups (you must provide the unifying theme) and the 4 words contained in each theme. An example of a unifying theme could be “Types of Animals” containing the words:  “dog,” “cat,” “rabbit,” “deer.” We’ll keep score throughout the year to crown the 2025 Cityfi Cluster Champion. The answer will be posted in our next newsletter. If you want your score to count, please submit your answer before August 22nd.

Last month’s solutions are:

  • Words Associated with Climate Change:  Emissions, Warming, Adaptation, Methane

  • Words Associated with Public-Private Partnerships:  Collaboration, Innovation, Contract, Investment

  • Sun______ (words that start with “sun”):  Light, Flower, Screen, Roof

  • Modes of Transportation:  Bus, Bike, Scooter, Rail

Where in the World is Cityfi?

Check out where Cityfi will be in the upcoming weeks. We may be speaking at conferences, leading workshops, hosting events, and/or actively engaging in collaborative learning within the community. We would love to see you.

Chicago City Builders Book Club - Chicago, IL - August 14

If you live in Chicago, check out the Cityfi sponsored Chicago City Builders Book Club typically meeting up every 6 weeks near The Loop. There’s wine. There’s great conversation. There’s zero pretense.

Principal Marla Westervelt co-hosts this book club where they bring together professional city builders to discuss Chicago-centric books that explore local urban and political issues. The upcoming meetup with be to discuss The Loop by Patrick T. Reardon, a deep dive into how a stretch of elevated track transformed Chicago’s identity and infrastructure. It’s history with stakes, and they’ll be unpacking it together. RSVP HERE!

ITS World Congress - Atlanta, GA - August 24 - 28

Karina will be in Atlanta as a part of a couple of panels. One of the panels has been posted, while the others are still being finalized. Check our LinkedIn page to get more up-to-date information as the conference draws nearer.

Building Blocks for CCAM Deployment - Sunday, August 24th (2:45 PM - 3:45PM)

The deployment of Connected, Cooperative, and Automated Mobility (CCAM) has progressed more slowly than initially anticipated, with significant variation across use cases. This delay stems not only from technological challenges but also from the complexity of integrating Automated Vehicles (AVs) into existing transport systems. Key barriers include regulatory and safety concerns, limited public trust, insufficient understanding of AV potential among decision-makers, and a lack of evidence on societal and economic benefits.

While some major cities are making strides—establishing infrastructure, launching robotaxi and shuttle pilots, and incorporating these services into urban mobility plans—smaller cities and rural areas often lack the resources, expertise, and guidance to follow suit. To accelerate deployment, fostering collaboration among stakeholders and sharing best practices within the CCAM implementers community is crucial. This session will explore the critical building blocks for deploying AV services, offering practical insights and strategies to inform decision-making and support a broader, more equitable rollout of CCAM solutions.

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