BIXI: Toronto, Like Montreal Before It, Bails Out BIXI At A $4 Million Loss

Update:

Toronto like the City of Montreal before it, has given up millions of dollars to hold onto BIXI, a failing bicycle business
Toronto, like the City of Montreal before it, has given up millions of dollars to hold onto BIXI, a failing bicycle business.

see source

Toronto’s plan to save Bixi transfers the bike-sharing program to the Toronto Parking Authority, turns over management to a Portland-based firm and uses money from Astral Media that was going to be spent on public toilets, the National Post has learned.

The deal, approved at a closed-door meeting of city council 10 days ago, will also see Toronto “eat” the $3.9-million in loan guarantees that the city gave to Bixi, owned by the City of Montreal, according to a source.

But the deal to save Bixi Toronto is not final until Bixi in Montreal signs it.

Bixi has offered to sell the 1,000 Bixi bikes it operates in Toronto to the city for $1,200 each. A source said, however, that negotiations bogged down after Toronto learned that Bixi planned to put sale proceeds in its pocket and not reimburse local creditors, such as the mechanics who fix the Toronto bikes. Toronto hired a bankruptcy lawyer to review the arrangement, the source said.

“If we don’t make a deal, Bixi Toronto goes bankrupt,” the source said.

It's only fair to share...
Share on FacebookTweet about this on TwitterGoogle+Pin on Pinterestshare on TumblrShare on LinkedInShare on RedditEmail to someone

One thoughtful comment

  1. Thanks for the sensible critique. Me & my neighbor were just preparing to do a little research about this. We got a grab a book from our area library but I think I learned more clear from this post. I am very glad to see such magnificent info being shared freely out there.

Leave a Reply

Your email address will not be published.