Bixi: A timeline
2007 The city of Montreal asks Stationnement de Montréal, which runs the city’s parking operations, to set up a bike-sharing service.
2009 Bixi launches. The first major bike-sharing system in North America, it’s an immediate hit on Montreal streets. The city says taxpayers won’t pay for the system. Instead, it will be financed by bike sales to other cities.
2010 In August, Montreal’s auditor general launches an investigation of Bixi’s finances, concerned its debt will affect the city’s bottom line. Four months later, the city proposes to put as much as $108 million on the line for Bixi, by guaranteeing its loan and credit lines. Bixi says the city backing will give it a lower interest rate and more credibility internationally.
2011 In May, executive committee chairman Michael Applebaum says Bixi is out of operating cash and on the brink of collapse. If the $108-million bailout isn’t approved, Applebaum says, Bixi’s board will resign en masse, plunging the company into bankruptcy. The plan is okayed and Bixi comes under the direct control of the city of Montreal. Bixi’s international operations are to be sold. A month later, Montreal’s auditor general releases a report in which he points to administrative problems, an illegal organizational structure, inadequate planning and an absence of oversight and accountability. The city had no right to set up an international business and launched bike-sharing blindly, with little or no advance planning, the auditor finds.
2012 Bixi becomes embroiled in a legal dispute with 8D Technologies, the Montreal firm that provided the software for all Bixi stations. 8D sues Bixi for $26 million, and Bixi sues 8D for $2.5 million. The dispute arises after 8D refuses to sell Bixi all the rights to the software. Bixi hires a company to build software to replace 8D’s in future systems Bixi will sell. The new software is plagued with bugs.
2013 In March, Mayor Michael Applebaum announces the city will spend $2.4 million on Bixi to buy new bikes and bike docks. It’s the first time the city has laid out money on Bixi, apart from a loan being repaid, with interest. Bixi delays disclosure of its 2012 financial results. In September, the city’s auditor general expresses “serious doubts about Bixi’s ability to continue operations.” But the city says cash-flow problems are temporary. The auditor general is still poring over Bixi’s finances and the 2012 financial statements have yet to be published. An expected sale of Bixi’s international operations has fallen through. That sell-off is now a long-term objective.