Bixi established the not-for-profit public bicycle sharing system in Montreal in 2007 before expanding to cities around the world, including London, Boston, Chicago, New York and Melbourne.
According to Jalisco government officials, Bixi plans to provide 1,162 bicycles at 160 docking stations in both the Guadalajara and Zapopan municipalities – less than one-tenth of the size of the New York system.
The company that owns Bixi — the Public Bike System Company, known in French as the Société de vélos en libre-service (SVLS) — owes up 50 million dollars to various creditors, including the City of Montreal.
CBC News reported that Bixi has applied for protection from its creditors and the City of Montreal is taking over the local operation of the bike-sharing service.The company’s rugged, heavy-duty bikes and solar-powered docks are lauded throughout the world but Bixi has been plagued by financial problems.
CBS News notes that “persistent delays and problems with the technology prompted many clients to withhold payments — Chicago and New York refused to pay out 5.6 million dollars to Bixi because of the prolonged snags in the development of each city’s bike-sharing service.”
According to theatlanticcities.com website, the City of Montreal stepped in to bail the company out in 2011 when it was near collapse. “The city lent SVLS 37 million to cover its deficit at the time and also made 71 million in loan guarantees for international expansion.”
The website noted that following the bankruptcy filing, “Montreal’s auditor general, Jacques Bergeron, wrote a letter to the city’s leadership in which he said he had serious doubts about Bixi’s ability to continue operations.”
CBC said City of Montreal officials expect a 1.5-million-dollar loss on Bixi this year because of the restructuring.
Should the Guadalajara bike hire project proceed as planned, the first docking stations could be operational as early as June, city officials say.
Bixi systems vary from city to city but most allow users to rent a bike with a personalized access key or card or simply by using chip and PIN payment. Cost is dependent on the length of hire.