The Canadian company that runs the popular bike-sharing schemes in New York, London and Sydney has gone bankrupt, after two US cities withheld C$5.6m in payments amid widespread software glitches
January 22, 2014 Leave a comment
January 21, 2014 7:43 pm
Public Bicycle-Sharing Company wobbles into bankruptcy
By Robert Wright in New York
The Canadian company that runs the popular bike-sharing schemes in New York, London and Sydney has gone bankrupt, after two US cities withheld C$5.6m in payments amid widespread software glitches.Two of its largest customers – the cities of New York and Chicago – had withheld their payments, Mr Coderre said, after encountering a series of problems with PBSC’s version of the software used to control the availability of bikes.
PBSC’s developed its own software for the two US cities’ bike schemes when a dispute with its original supplier,8D Technologies, could not be resolved.
However, a series of glitches – which prevented bikes being released from docking stations or returned at the end of a trip – held up the introduction of the New York and Chicago schemes by more than a year, prompting the cities to withhold payment.
“This has affected cash flow and led to insolvency,” Mr Coderre explained.
Bike-sharing has been one of the great urban transport success stories of recent years, with use of many systems worldwide surpassing expectations.
PBSC’s previous technology, using 8D Technologies’ software, still powers some of the most popular schemes, including Boston’s Hubway and London’s Barclays Cycle Hire – named after its sponsor bank but more commonly known as the “Boris Bikes” after the city’s mayor.
These schemes are not expected to be affected by PBSC’s financial difficulties.
Transport for London, which oversees the scheme in the UK capital, said: “We along with our service provider, Serco, have been aware for some time of the ongoing financial situation with PBSC Urban Solutions . . . This development will have no impact on the current operation and provision of the Barclays Cycle Hire.”
Similarly, Alta Bikeshare, a privately owned company that manages seven of PBSC’s US schemes, including New York and Chicago said its systems would continue to operate without interruption.
In Montreal, Pierre Desrochers, chairman of the council’s executive committee, said the city would do everything possible to maintain its own bike-share scheme – which is currently shut down for winter – while protecting the interests of taxpayers.
The city would make “every effort” to sell PBSC’s international activities, Mr Desrochers said, although it is not yet clear who might buy them.
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