The Citi Bike Deal Is Great News for Other Cities Too

Bay Area Bike-Share, shown here in San Jose, is one of several systems that should be able to fulfill expansion plans quicker after REQX Ventures acquires a controlling stake in Alta Bicycle Share. Photo: Richard Masoner/Flickr

Andrew Tangel at the Wall Street Journal had an encouraging update this week on the Citi Bike buyout plan first reported by Dana Rubinstein in Capital New York. It looks like the city is days away from announcing a deal in which REQX Ventures, an affiliate of the Related Companies and its Equinox unit, will buy out Alta Bicycle Share, the company that operates Citi Bike. The implications are big — not just for bike-share in New York, but for several other major American cities as well.

REQX would acquire a majority stake in Alta Bicycle Share, bringing new management and a much deeper reservoir of financial resources to the company. Vexing problems with Citi Bike’s operations, software, and bike supply chain are expected to be addressed, though it’s not clear yet where the next round of bikes will come from.

For New York, the terms of the deal mean the price of Citi Bike annual memberships will rise from $95 to the $140 range, while the service area will expand substantially. A source familiar with the situation said the plan is to get new stations operating by next spring. The larger service area could reach as far north as 145th Street, according to the source, while extending into western Queens as well as a ring of Brooklyn neighborhoods around the current boundaries.

One aspect of the news that hasn’t been getting much notice is that several other bike-share systems will also be affected. As Payton Chung noted last week, Alta-operated systems in Chicago, DC, Boston, and San Francisco have all been hamstrung by bike supply problems the company had been unable to solve. The buyout should break the logjam holding back expansion plans in those cities and allow system launches in Baltimore, Portland, and Vancouver to progress.

The last two years have been simultaneously thrilling and frustrating for American bike-share, with rapid adoption in major cities accompanied by performance glitches and long waits for system expansions. The outlook for 2015 seems a lot sunnier.


Sources: Alta Buyout a Done Deal; New York Citi Bike Fleet to Double

The buyout of Alta Bicycle Share rumored since July is finally a done deal. Alta — which operates New York’s Citi Bike, Washington, DC’s Capital Bikeshare, Chicago’s Divvy, and several other cities’ systems — will be purchased by REQX Ventures, an affiliate of the Related Companies and its Equinox unit. The injection of capital from REQX is […]

Bixi Bankruptcy: What Does It Mean for American Bike-Share?

The Montreal-based equipment supplier for several American bike-share systems, including New York’s Citi Bike and Chicago’s Divvy, filed for bankruptcy protection yesterday. It’s unclear exactly how the restructuring or sale of the company known as Bixi will play out, but the bankruptcy filing could accelerate the transition to more robust and reliable hardware and software. […]

Alta Chief: Bike-Share Expansions Unlikely in 2014

Despite continually growing ridership, Alta Bicycle Share-operated bike-share systems across America will probably not be adding bikes or docks this year. The bankruptcy of Montreal-based Public Bike Share Company, known as Bixi, which developed and manufactured the equipment that Alta’s systems use, has disrupted the supply chain that numerous cities were pinning their expansion plans […]

New Name for Alta Bicycle Share: “Motivate”

After new management took over in 2014, injecting capital and expertise that’s expected to turn around a sputtering operation, the company formerly known as Alta Bicycle Share has adopted a new name: Motivate. (A verb! Very active transportation-y.) Motivate operates bike-share systems in New York, DC, Boston, Chicago, San Francisco, and Seattle, making it the […]

Portland Bike-Share Ready to Roll Thanks to $10 Million From Nike

“Huge” is how Jonathan Maus at Bike Portland described the news yesterday that Nike will sponsor Portland’s upcoming bike-share system to the tune of $10 million. Bike-share has taken much longer than expected to get off the ground in Portland. With Nike’s sponsorship, the city will be moving forward with a bigger network than it’s been planning. The […]