15 Sep 2014
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Bike Share Stalled, Could Be Asking Sponsor for More Cash

The company running the bike share will likely not be penalized for launching late.

Bike Share Stalled, Could Be Asking Sponsor for More Cash

The was supposed to get pedaling today, and a software problem is to blame, said Mayor Michael Bloomberg.

“The company that’s managing it changed vendors to have new…software and it just doesn’t work yet,” the mayor said on his radio show Friday, according to the Wall Street Journal.

The paper says that if NYC Bike Share and its parent company, Alta Bicycle Share, don’t have any bikes available by August 1, the city could sue, though the mayor has shown no intention of penalizing the companies because the city is not financially affected by the partnership.

Additionally, the New York Post is reporting that – according to a source – Alta is looking to accelerate payments from lead sponsor CitiBank, so that they can get the software issue resolved.

Citibank paid its first $1.4 million installment when it signed the contract with Alta, a second $1.4 million comes due on the launch date, and $2.1 million more is supposed to be paid when at least 7,000 bikes are operational, says the Post.

And while sources say that Alta is asking for an advance on the second $1.4 million, the Department of Transportation is keeping mum.

“That is inaccurate,” DOT spokesman Seth Solomonow told the paper when asked about a possible delay until 2013 and Alta’s request for cash.

“While we can’t get into details, we are working on a plan to launch the system.”

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