Chicago officials said on Tuesday that the city has not paid the $2.1 million it owes to the company that supplies the Divvy bike sharing program. The company, the Public Bike System Company, also known as Bixi, filed for bankruptcy on Monday.
Chicago Department of Transportation spokesman Peter Scales told the Chicago Sun-Times that the city still has not paid the $2.1 million because “bikes, station parts and software updates did not arrive” by the dates that the company had promised.
“It hasn’t impacted operations, but it did delay the rollout of some of the stations. We started with 70 and ended with 300, but it took longer than we had scheduled,” Scales told the newspaper. He did not disclose when the payment would be provided to the company.
Meanwhile, Mayor Rahm Emanuel's administration said it is still looking to beef up the Divvy program to include a total of 4,000 bikes and 400 stations this year.
"We’ll continue to operate Divvy as we determine what impact, if any, this will have on expanding the system into new neighborhoods” and keeping up with existing stations, Scales said.
“PBSC will continue to operate while going through bankruptcy, just like a whole bunch of other companies have done. It’s a legal maneuver to restructure and eliminate debt. But, it doesn’t necessarily affect production or operations.”