Bixi losing millions
President of the bike-sharing company Bixi has resigned because he can no longer guarantee that taxpayers won’t be on the hook for the company’s deficits.
In Plamondon’s tenure, Bixi racked up a $108 million budget shortfall in Montreal — $37 million for operations and $71 million to expand its business internationally.
The resignation comes just a few months after an optimistic Plamondon painted a rosy picture of BIXI’s future in front of city councillors, begging them for the handout. Without the prospect of a welfare payment courtesy of Montreal taxpayers, the Société de vélo en libre-service’s future now looks quite bleak.
But Plamondon and BIXI management have been walking on thin ice with municipal governments in the US– they weren’t paying attention and didn’t foresee the Obama administration’s Buy American Act interfering with their dealings. As a result, future expansion may be in jeopardy and BIXI manufacturing is being partially outsourced to companies south of the border.
- Nov. 13th, 2011
- Nov. 14th, 2011