Citi Bike's Rates Could Roll Upward: Operating Company Also Seeks to Raise Up to $14 Million From Investors
The Portland, Ore., company that operates Citi Bike is seeking to raise as much as $14 million from investors to expand New York City's bike share and is asking City Hall officials for permission to potentially increase the program's rates, the firm's president and chief executive said Friday.
Citi Bike's $95 annual membership rates were "too low" to cover its expenses, said Michael Jones of Alta Bicycle Share.Mr. Jones said he didn't know how much the annual rates might need to be adjusted.
White is the head of Transportation Alternatives. His group was instrumental in helping to bring bike share to the city. But on the Brian Lehrer Show Friday, he said it's time to come to terms with what he called the system's chronic problems."The cash crunch is really the result of mismanagement," he said. "We've been big supporters with the system...but the system is just not performing."
“At this point, city budget money is not on the table,” he said. “We will collaborate with them to help them find ways to be more efficient and more effective.”The program was launched last year with a promise from Mayor Michael Bloomberg that it would not require public funding.
An excerpt$95 is not a lot of money for a bike to use all year long around the city whenever you want,” an annual member told Haskell. “Ninety-five dollars a year beats a MetroCard every month.”