There is arguably no greater title in North American bike sharing than Bixi of Montreal. So the word on Monday that Bixi had filed for Canada’s model of Chapter 11 bankruptcy sent some shudders across bike sharing cities.
Bixi, which combines bicycle and taxi, has filed for bankruptcy in its home town of Montreal. (Photograph credit: Wikipedia)
Fifteen cities, like London, New York and Chicago have adopted Bixi’s bike-sharing model, but it has not been a rewarding a single. Bixi has far more than $ 50 million in debt that will have to be restructured.
The Bixi bankruptcy itself wasn’t a shock. Bixi’s economic troubles have been properly documented, specifically by transportation reporter Andy Riga in the Montreal Gazette. The city of Montreal basically place Bixi into bankruptcy, in order to give the business a chance to revive its operations.
The Bixi bankruptcy comes at a time when experts have predicted the U.S. bike sharing fleet, which doubled in 2012, could double yet again in 2013. A lot of smaller sized cities are starting to consider installing bike sharing methods, as I wrote at our journalism project Curbing Cars.
Will the Bixi bankruptcy stall these efforts? The end result of this restructuring could impact for more cities than just Bixi’s home base on Montreal.
Bixi has some key liabilities, and it is owed money, too. A amount of cities have delayed payments to Bixi above complaints about its bike sharing software program programs.
Here, primarily based on Riga’s reporting, are 5 large debts from the Bixi bankruptcy.
New York and Chicago: They owe Bixi$ five.3 million, withheld by because of delays in implementing application across the Citibike and Divvy Bikes techniques respectively.
Damages: Alta Bike Share, which operates Citibike for New York, wants $ eleven million from Bixi because of individuals computer software delays.
Loans: Bixi owes Montreal and its taxpayers a minimum of $ 38 million. About $ 31.6 million is owed on a $ 37 million loan from the city. An additional $ six.4 million is owed on a line of credit score guaranteed by Montreal taxpayers.
Suppliers: They are owned $ 9 million by Bixi.
Montreal: Beyond the loan and line of credit score, it could value $ 1.five million more for Montreal to run the Bixi technique in 2014.
What takes place to cities with Bixi bike sharing plans? They could locate other operators, this kind of as Alta Bike Share, or run the techniques themselves. Bike sharing has grow to be a main tourism device in a number of places, so it is probably that cities will feel twice about shutting down the techniques and getting rid of bikes and kiosks.
five Large Debts In The Bixi Bike Sharing Bankruptcy
