“To protect its financial interests,” Toronto City Hall may “restructure” its relationship with the Public Bike System Co (PBSC) according to a document made public last week. PBSC and the City of Montreal operate the Bixi system in Toronto, Montreal, and Ottawa. The same document alleges, “Unsupportable debt load and a seasonal cash-flow shortage,” involving the Bixi program in Toronto. Toronto City Council did guarantee a $4.8 million loan for Bixi, but has provided no other monies.
“I’m not going to subsidize it. Absolutely not,” Toronto Mayor Rob Ford told reporters when questioned about possibly bailing out Bixi. “If they can’t pay for it, then obviously we have to take other actions. It’s unfortunate. That’s why I’m always careful when people come and ask us for money.” If Bixi Toronto has indicated to City Hall how much it needs to remain viable, this amount has not yet been made public.
PBSC chief executive Michel Philibert told The Gazette that Toronto has some 4,630 Bixi members. But with only 1,000 bikes concentrated in the downtown core, it will be impossible to grow membership beyond 5,000 members. Montreal, by comparison, has 5,120 bikes and 37,000 members. Philibert also indicated that PBSC does not want to close Bixi Toronto and the program will remain in operation for 2013.
When the Bixi Toronto deal was negotiated in 2010, it was understood that the city would eventually invest in the program to expand it, but there was no formal agreement on this point indicates Daniel Egan, the manager of cycling infrastructure in Toronto. To be financially viable, the program needs a minimum of 3,000 Bixi bikes reports The Star. Councillor Mike Layton (Trinity-Spadina), a champion of Bixi Toronto, says that he is looking at other funding options, including corporate sponsorships.
“Reaching the milestone of one million Bixi trips in 18 months is a significant achievement,” said Councillor Denzil Minnan-Wong (Ward 34, Don Valley East), in part of a Bixi press release from October, 2012. “This is proof of the popularity of Bixi as a convenient, safe and practical option for travelling in the downtown core,” An annual membership with Bixi Toronto costs $97.
Montreal is the birthplace of Bixi where the rental bikes were first introduced in 2009. Montreal officials have long claimed that the program would pay for itself, but Mayor Michael Applebaum said in March that city will spend $2.4 million this year to buy 100 additional bikes and to add Bixi infrastructure. In addition, the city will contribute $245,000 in operating funds this year. Montreal also provided a $37-million loan in 2011 when Bixi in that city was out of cash and about to collapse. Bixi is now repaying the loan with interest.
In Montreal, the program has also been controversial with criticisms being directed to Bixi’s secrecy, lack of a clear business plan, and whether it is in Montreal’s jurisdiction to finance Bixi programs in other cities. It now seems likely that the Montreal transit authority, the STM, will take over Bixi operations for Montreal and other Canadian cities (including Ottawa) while foreign Bixi operations will likely be sold to Procycle, a bike-maker based in Quebec’s Beauce region reports The Gazette. Bixis can be found in: London (UK); Melbourne (Aus); Minneapolis (MN); Washington (DC); Boston (MA); and Chattanooga (TN). New York City is expected to launch its Bixi program next month.
The online Star article on this topic had generated 522 comments by press time, most favorable to Toronto’s Bixi program and unfavorable to Toronto Mayor Ford. One comment from “switcherdawna” suggests that Ford has hated bikes since the last time he rode one, at eight years old, when Ford fell off.
Read the Star article HERE.
Read the Gazette article HERE.
Find out more about Bixi Toronto HERE.
Read more about the Bixi controversy in Montreal (2011) HERE.