Let me get this correct. PBSC has to sell the export side of the company because Bergeron’s report pointed out that under the city’s charter, it has no legal right to be involved in a commercial enterprise, they have a 108 million dollar loan guarantee from the City of Montreal, the original technology provider is now suing the company for 26 million dollars – – so does this mean the potential owners of the system would now have a 26 million dollar lawsuit to contend with?
How will this affect the future of the 10,000 bike system going into New York, the 3000 bike system going into Chicago, let alone the pilot program in San Fransisco and other pending systems? If this doesn’t bring a little uncertainty to city officials nothing will, maybe more than just Montreal tax payers will be on the hook for the popular bike share system?
“Few people know that it is 8D Technologies that developed the core technological solution that powers the BIXI bike-sharing system, which in turn has greatly contributed to the worldwide reputation and recognized success of the system, which is currently deployed, using 8D’s technological solution, in a dozen cities on three continents.
8D’s wireless, solar-powered 8D BSS (Bike Sharing System) technological solution primarily contains the following hardware and software components, which were conceptualized and are owned by 8D Technologies: the payment terminals (designed by Québécois industrial designer Michel Dallaire), electronic boards (for the terminal and bike docks), a comprehensive back office software solution that fully addresses the management and operational needs of the bike-sharing schemes regarding payments, operations management, accounts, billings, subscriptions and payments, power control (solar energy), user interaction, communication between bike docks and payment terminals, configuration, monitoring and operations. From a services point of view, 8D manages the majority of the bike-sharing schemes in the cities around the world, from its installations in Montreal, the hosting services being part of the solution it provides. 8D also created the Spotcycle mobile application for iPhone, BlackBerry Android, and the Spotcycle Web application.”
http://www.newswire.ca/en/story/964029/8d-technologies-historical-partner-of-the-bixi-tm-project-files-a-26-million-lawsuit-against-pbsc
“Montreal’s auditor general says the city missed several crucial steps in the creation and management of the Bixi bike-sharing program.
In a report released Monday, Auditor General Jacques Bergeron said the city didn’t properly study the program’s feasibility before its launch. He also said the city it has no authority to market and export the concept, and the Bixi service will cost taxpayers millions for years to come.
Bergeron wrote in his report that basic elements of management were neglected, including risk and cost-benefit analyses, and allowance for a financial margin of error.
In May, city council approved a $108-million bailout package for the program, including $37-million to cover Bixi’s deficit, and another $71-million in loan guarantees to export and develop the system abroad.
Exporting the concept is a major source of income for the program.
But Bergeron’s report pointed out that under the city’s charter, it has no legal right to be involved in a commercial enterprise.”
http://www.cbc.ca/news/canada/montreal/story/2011/06/20/bixi-report-mtl.html
What does a core technology change for BiXi mean?
Please comment if any of this information is incorrect.
Public Bike Share 