Let us manage the bike share program, Hamilton Bike Share tells Uber

The not-for-profit organization that once operated Hamilton's endangered bike share program has told Uber that it wants to take back the reins.

Hamilton Bike Share Inc. (HBSI) wrote a letter to Uber on Thursday say it's "willing and ready to take over operations" of the bike share system on June 1, the day Uber has said it will pull out of its contract with the City of Hamilton.

The not-for-profit wants Uber to provide about $50,000 per month. In exchange, HBSI will operate the program until February, when Uber's contract with Hamilton expires.

This arrangement, HBSI says, would let Uber keep its contractual obligation to Hamilton, and Hamilton would keep its bike share program.

"We want to avoid a gap in service," said Chelsea Cox, HBSI executive director, in an interview.

The not-for-profit operated the local bike share service via a subcontract until last year. It's still overseeing the Everyone Rides Initiative, which offers low-cost memberships and accessible trikes. HBSI has $706,7000 in Ontario Trillium Foundation money secured for 2019 to 2022 for Everyone Rides.

Uber hasn't responded to HBSI yet, and didn't respond to CBC News requests for comment. But HBSI has also launched a $400,000 fundraising campaign in case Uber doesn't agree. That way, Cox said, HBSI can make an offer to the city to operate the program without any cost to taxpayers.

HBSI launched the fundraiser on Thursday and has gathered about $40,000 in donations so far. 

Hamilton's bike share program dates back to 2014, when the city agreed to use a one-time $1.6 million Metrolinx grant to buy 900 bikes and accompanying stations. It signed a contract with Social Bicycles LLC in Brooklyn to operate the program, which subcontracted the job to HBSI.

The bike share program launched in 2015, and in 2018, Social Bicycles LLC became Jump Mobility. Uber bought Jump the same year. Last May, Uber/Jump took over operations from HBSI, and hired many HBSI staff.

This month, Jump was acquired by Lime, a company that runs e-scooter programs in numerous cities. Uber and the city had just signed a one-year agreement in February, but on May 15, the company — using Social Bicycles LLC letterhead — wrote the city saying it would pull out on June 1.

On Wednesday, Hamilton council voted 8-8 not to temporarily fund the bike share program with $400,000. The money would have come from capital budgets for Wards 1, 2 and 3, meaning only taxpayers in those wards would pay for it. Opposing councillors say the program was never supposed to cost local taxpayers, who they say can't afford it given the economic hardship of COVID-19.

The city is also projecting a pandemic-related budget deficit of about $60 million so far, although it hopes for help from the provincial and federal governments. 

Instead, councillors voted to keep looking for a third-party operator, and to put the bikes in storage. City staff are still working out how much that will cost, but said Wednesday that it will be a significant amount, likely $130,000 or more. 

The bike share program has more than 26,000 active users, and has gained 600 more since the COVID-19 pandemic started. 

There has been a "groundswell of public support for the system over the past two weeks," says HBSI's letter to Uber, and it's "nothing short of phenomenal."

"One of Uber's cultural norms is 'Do the right thing. Period. We implore you to uphold those values, particularly in these unprecedented times, and do the right thing in Hamilton. Let's talk."