The City of Vancouver is downplaying Bixi's role in a planned bike share system after the City of Montreal announced on January 20 that the company would file for bankruptcy.
"Bixi is not the primary partner in Vancouver's planned bike share program, and Vancouver has always refused to offer any of the loan guarantees or obligations that have created significant risk to taxpayers in other cities," Mayor Gregor Robertson said.
"It will only launch in Vancouver if and when the City is fully satisfied that all partners involved can move forward with operations that are successful and fiscally responsible."
Alta Bicycle Share, the other partner in the Vancouver program, could not be reached for comment.
Montreal Mayor Denis Coderre said his government could not continue to fund Bixi at a press conference January 20, according to media reports
Bixi is currently $47 million in debt. In 2011, Montreal spent $108 million to bail out the company. The City of Montreal now plans to take over the bike share service.
In November, Coun. Heather Deal said Vancouver's program would be delayed by several months because of financial problems with Bixi's Toronto operations. A City of Toronto memo obtained by several newspapers said Bixi Toronto faced "insolvency" because revenues had not met expectations.
Last July, Vancouver city council voted to spend $6 million to set up the bike share program and chose Alta Bicycle Share, a Portland-based company, to operate the system and Bixi to provide the equipment.
Alta and Bixi have partnered to set up several other bike share systems, including in Chicago and New York. However, Bixi is currently owed a total $5.6 million from those cities, who say there have been delays and equipment problems.
