The Citi Bike program is in some pretty dire financial straits, claiming that it needs tens of millions of dollars to stay afloat, but now help may be on the way in the form of real estate developer Related, the company behind most of Hudson Yards and a bunch of other projects. The Journal reports that REQX Ventures, an investment firm formed by gym chain Equinox and parent company Related has signed a term sheet with Alta Bicycle Share Inc., the company that runs Citi Bike, outlining a deal that would give the struggling bike share its much needed capital infusion and expanding it to new neighborhoods. The details of how much money and which neighborhoods have not yet been made public.
Alta is also apparently still trying to get the city to let it raise its rates, but city officials would rather not do that until the program has a more viable plan going forward. So, if the deal with REQX comes together, things could finally be looking up for the bike share, especially now that the third of three lawsuits seeking to remove bike racks has been dismissed. And it could be a win for Related and Hudson Yards because, hey, even if the 7 train extension never ends up getting finished everybody can just ride bikes everywhere.
· New Investor Considered for Citi Bike [WSJ]
· Citi Bike coverage [Curbed]