Bixi Toronto on the block

The Toronto Bixi bike share program is under pressure to work out a new financial deal with city officials ahead of this month’s city council meeting.

The City of Toronto currently backs Bixi for the remainder of the startup costs incurred when the system launched in 2011. If Bixi is unable to continue making payments on schedule, the city will be on the hook for $3.9 million.

“The city is trying to save Bixi. We are not sure it is possible to save Bixi,” Councillor Denzil Minnan-Wong said at city hall. “But we’re going to continue to negotiate. The clock is ticking.”

The problem according to Bixi and many users of the system, is that the present stock of bikes and stations is too small to be financially viable. The Bixi system of 1000 bikes spread across 80 stations is concentrated in the core of Toronto, with no presence further out from City Hall.

Instead, Bixi Toronto would like to add another 2000 bikes, and multiple stations to allow the system greater reach, and hopefully, greater ridership.

Discussions between the bike sharing company and the city are continuing, with a report to be issued to council on November 13-14. Although unwilling to comment on details, Minnan-Wong stated that the relationship between the two parties has been strained because Bixi “changed the terms at the last moment,” during earlier negotiations.

If the two parties are unable to reach an agreement, Bixi will be forced to operate without support from the city, endangering the success of the program.