The wheels may already be falling off the bike share program scheduled to launch next year in Vancouver.
Bixi, the company supposed to provide bikes and docking stations, is $42 million in debt and looking for government bailouts to keep similar systems running in Montreal and Toronto.
The City of Vancouver has agreed to spend $6 million to set up its program with operator Alta Bicycle Share, but Councillor Heather Deal insisted taxpayers don’t have to fret about Bixi’s financial woes.
“Our staff are being very careful to ensure that we don’t enter into a contract that isn’t something we can be assured of success with,” Deal said.
“We are not writing into the contract that we will take on any loan guarantees. That is something other cities did differently.”
Toronto council guaranteed a $4.5 million loan when Bixi launched there two years ago, $3.7 million of which hasn’t been paid back.
Apart from Vancouver’s initial investment, the city has agreed to spend $500,000 annually to keep the program running. Another $1 million for initial staffing and signage is expected to be paid for through additional sponsorships and donations.
Non-Partisan Association Councillor George Affleck said Bixi’s troubles are a sign that Vancouver should put the brakes on the program, at least temporarily.
“Bike sharing is not a viable business and government shouldn’t be investing in a business that’s not viable,” Affleck said.
Bixi’s issues have already delayed the start of Vancouver’s bike share system, which was supposed to launch in early 2014 with 250 GPS-equipped bikes and 25 stations, but Deal said there’s still hope for the program.
“We think it’s still possible here,” she said. “We have to make sure it’s got a strong business case.”
The program as planned would eventually see a total of 1,500 bikes at 150 stations, which would be located every two to three blocks and feature helmet dispensers for safe riding.
Memberships would cost $95 per year, $20 per month or $5 per day, and the city would receive 50 per cent of the profits.
With a report from CTV British Columbia’s Shannon Paterson