Alta and 8D Technologies announce new partnership for bikeshare systems

[PotomacCyclist]

http://www.montrealgazette.com/technology/Bixi+former+partners+become+competitors/9464441/story.html

[PotomacCyclist]

Note that 8D Technologies is the creator of the free Spotcycle mobile app, which displays bike and station info for the Capital Bikeshare system (and many other bikeshare systems too). The new mobile app might replace Spotcycle.

[PotomacCyclist]

Bixi seems to have been sold to the owner of a chain of furniture stores. Citibike in NYC is said to be in financial difficulty, largely because they are expecting bikeshare to break even from the very beginning, or at least without the assistance of any public funding at all. (I don’t know how realistic that is, considering that every transportation system is heavily subsidized, including car driving.)

There haven’t been any updates on the Alta/8D partnership. A new W. Post article highlights the delays for expanding Capital Bikeshare due to the Bixi bankruptcy.

http://www.washingtonpost.com/local/trafficandcommuting/capital-bikeshare-expansion-hindered-by-bankruptcy-of-montreal-based-bike-vendor/2014/04/12/d42c8a2a-bf23-11e3-b195-dd0c1174052c_story.html

But it’s interesting to see some updates on those expansion plans in the D.C. region. It has already been reported that College Park intended to join the network this year, but that has been put on hold because of the Bixi bankruptcy. Alexandria is planning to expand CaBi to Del Ray and Carlyle but that has also been delayed.

The article also quotes a D.C. transportation planner who says that D.C. had planned on adding 40 new stations this spring, many of them in downtown neighborhoods where demand frequently overwhelms supply (full stations on weekday mornings, empty stations on weekday evenings).

Maybe the sale of Bixi or the Alta/8D partnership gets the process moving again soon. When it does, that large expansion in downtown D.C. could mean major improvements for those who commute to D.C. on CaBi. The expansion maps that I’ve seen do not show this large a number of new stations downtown. Most of the planned 2013 locations have already received stations, with only a few remaning to be added.

http://goo.gl/maps/77pLi

There are a lot of stations downtown already, but there is demand for more (or at least a large demand for more docks at existing stations). I’m eager to see where these new stations will be located. I’m even more eager to see those stations get installed soon.

[Tim Kelley]

Another story on the topic: http://www.theatlanticcities.com/commute/2014/04/bixi-bike-share-bankruptcy-saga-just-got-even-more-interesting/8868/

[PotomacCyclist]

http://wamu.org/news/14/04/16/bikeshare_supplier_gets_new_owner_reopening_door_to_possible_expansion_in_dc_area

[PotomacCyclist]

Montreal Gazette article, Apr. 16, 2014

“Court approves transfer of Bixi Montreal to city”

http://www.montrealgazette.com/news/Court+approves+transfer+Bixi+Montreal+city/9744950/story.html

The City of Montreal will take over the Montreal bikeshare system (through a new non-profit company). Some are claiming that this could be the final year of Montreal bikeshare but no decisions have been made. (http://www.montrealgazette.com/Bixi+bikes+back+Montreal+streets/9740045/story.html)

The international bikeshare sales division of Bixi was bought by furniture mogul Bruno Rodi. He has been out of the country but returns to Canada on Friday, when he is expected to sign the final papers for the sale of Bixi International. He will control all of Bixi’s intellectual property associated with the Bixi bikeshare systems.

The article includes the following:

“Most of Bixi’s contracts with other cities will be cancelled. Rodi will only retain two contracts with cities that have yet to receive bikes.

One, worth about $500,000, is for a small system in Dubai. The other, in Guadalajara, Mexico, is for 1,200 bikes and is worth about $5.5 million.”

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What does this mean? Well, it seems to indicate that the new Bixi International is going to cancel the Alta/Capital Bikeshare contract. But since the point of Bixi Int’l is to sell bikeshare systems, I would think that this is just the first step in renegotiating supply deals with Alta and other Bixi-based bikeshare operators and systems.

Rodi and Bixi Int’l have a monopoly on the supply of the Bixi-design bikes and systems, I believe. Alta and 8D have that new partnership deal though they didn’t have a bike supplier lined up yet when they announced the partnership. If Alta/Capital Bikeshare go with 8D and future partners, they would have to license the Bixi designs or create new bikes/stations that are compatible with the existing bikes/stations. I don’t know how difficult this would be. 8D can handle the software. Any new bikes would need to fit with the existing docking mechanism.

A lot of issues to be resolved in the coming months. I think Capital Bikeshare will be OK but it might take some time to sort through all of the financial and legal matters. If Alta and 8D do an end run around Bixi Int’l, will Rodi sue or put up roadblocks to prevent Alta from moving on from Bixi Int’l? Rodi is wealthy but how strong is Bixi Int’l’s position? Is the intellectual property vital for designing a replacement bike that would be compatible with existing stations (and future Alta/8D stations)? If so, then Rodi has more leverage. If not, then it could be much easier for Alta/8D to move on and forge a new path with Capital Bikeshare and other client systems (Chicago, NYC, et al.).

[mstone]

I hope that other cities are paying attention and don’t roll out enormous bikeshare investments on sole-sourced technology. Make an open platform a requirement for a contract, and make the companies compete on merits rather than lock-in. It would be better for the companies in the long run, as cities might be more willing to invest in something if there’s less chance their investment might get thrown out when some company has financial problems.

[peterw_diy]

@mstone 82719 wrote:

I hope that other cities are paying attention and don’t roll out enormous bikeshare investments on sole-sourced technology.

If they were paying attention they should have learned that lesson from the WMATA SmarTrip card supply mess that unfolded about the time Alta started installing Bixi stations: http://sunlightfoundation.com/blog/2010/10/15/technology-lock-in-with-the-dc-metro/

[PotomacCyclist]

At the same time, Alta does have some leverage of its own. I believe it operates most or all of the (North American) Bixi-based bikeshare systems outside of Montreal/Toronto. The new Bixi Int’l can’t play absolute hardball without risking the loss of perhaps its only real customer. Bixi Int’l could attempt to develop relationships with other bikeshare operators and cities, but where? The non-Bixi cities are going with B-cycle or some other systems. They don’t need Bixi. Even those cities that haven’t signed with any provider yet might be scared off of signing with Bixi Int’l if they destroy their business relationships with Alta bikeshare systems.

I would hope that Bruno Lodi has more than just a financial interest in Bixi Int’l, that he is truly a fan of bikeshare. He is a very active man and an adventurer. That doesn’t guarantee that he will be reasonable in negotiating new contracts with Alta systems, but it could be a good sign.

[PotomacCyclist]

An update on the Alta Bicycle Share-8D Technologies partnership. They announced the first new bikeshare system to use the new supply chain, one that no longer includes Bixi (PBSC). The new bikeshare system is based in Seattle. It is owned by Puget Sound Bike Share, but the operating brand name will be Pronto! Emerald City Cycle Share. (I believe that you are required to say “Pronto” forcefully and with emphasis. Otherwise it doesn’t really count.)

Alaska Airlines has signed on as a primary sponsor. Their logo will appear on the first 500 bikes as well as on marketing materials sent to bikeshare users. However, the system will not be named after the airline. (Could this be an advertising model for Arlington, D.C., Alexandria or Montgomery County?)

Alta and 8D will provide the docking hardware and software. As for bikes, the April press release said that bikes would be ordered from “a well-known global manufacturer.” Seems like Alta and 8D can choose from various bike suppliers for different bikeshare systems, instead of relying on just a single source as Alta did with Bixi/PBSC in the past.

A May 5 announcement did not name the bike supplier. The system is scheduled to begin operations this fall. A basic website is online. They have a Facebook page too. This is the picture of a Pronto! bike from their website. It has a similar design to the familiar Bixi bike, but the down tube is curved and the handlebars have a slightly different set-up.

[ATTACH=CONFIG]5814[/ATTACH]

The face of the future for Alta bikeshare systems? Will new Capital Bikeshare bikes look like this? Maybe. It looks a little spiffier than the old Bixi bikes, but it doesn’t matter that much to me either way. I’m just hoping to see progress on the bikeshare supply issues, for CaBi in particular.

This could also mean that Bixi International will no longer be a vital part of the supply chain. It may not have any future role at all. At best, it would be one of a number of competing bidders to supply bikes for bikeshare systems. Maybe Bixi Int’l will narrow its focus to just the two contracts it is retaining.

The Alta-8D press release early this year mentioned that their new docking stations would be more advanced than the old ones. The new stations would dispense bike keys, so new members would not have to wait for a bike key to be mailed to them. (CaBi now has an option for daily members to have a key. Their accounts are only charged on days they use the system, at the higher daily member rate. But those members need to have the keys mailed to them.)

The North American bikeshare industry has gone through some growing pains, but it looks like the companies may be learning some lessons.

http://www.seattlebikeblog.com/2014/04/03/seattle-based-system-will-pioneer-new-bike-share-partnership-hiring-manager/

http://pugetsoundbikeshare.org/news/

http://www.prontocycleshare.com/

https://www.facebook.com/ProntoCycleShare

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[PotomacCyclist]

Pronto! Cycle Share opened for service on Monday, October 13. As noted above, this is the first post-Bixi ALTA bikeshare system.

http://www.peopleforbikes.org/blog/entry/seattle-launches-bike-sharing-system

[bobco85]

@PotomacCyclist 96976 wrote:

Pronto! Cycle Share opened for service on Monday, October 13. As noted above, this is the first post-Bixi ALTA bikeshare system.

http://www.peopleforbikes.org/blog/entry/seattle-launches-bike-sharing-system

Their bikes are 7-speed instead of our 3-speed. I’m jealous!

[mstone]

@bobco85 96981 wrote:

Their bikes are 7-speed instead of our 3-speed. I’m jealous!

I say crank it up to 11!

[cyclingfool]

@mstone 97023 wrote:

I say crank it up to 11!

And none of this Shimano junk. Rohloff only!

[PotomacCyclist]

Every post about Pronto! Cycle Share must end with an exclamation point! When you visit Seattle and ride one of the bikes, you must shout out every sentence, as if it were marked with an exclamation point!

[Author]

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