SoBi to stop running popular bicycle ride-sharing service in Hamilton

The Uber-owned operator of SoBi Hamilton has told the city it will unilaterally end its contract to run the popular local bike share service in June.

The last-minute announcement - which comes only months after council renewed the operating contract - could potentially leave 17,000 local SoBi bicycle users without a rental ride just weeks from now.

Planning director Jason Thorne told councillors in a memo the city plans to contact SoBi and Uber seeking clarification on their position and reminding them of their contractual obligations to the city."

Thorne said the city learned of the company's plans to terminate the SoBi Hamilton bike share system operations" in a letter that arrived last Friday afternoon. His memo does not say why the ride-hailing giant wants out of the Hamilton bike-sharing contract, but promises more details in an update report this week.

It's just the worst timing. It's really tough news," said downtown Coun. Jason Farr, who noted the city is bringing a pandemic mobility plan" to council later this month that aims to give residents safe options to get around as the city emerges from a COVID-19 lockdown.

Farr said he expects cycling to play an important role" in the plan.

I would expect demand is going to increase for what is already a popular, well-used service ... It sure would have been helpful to have a little more notice."

The Spectator has reached out to Social Bicycles LLC and Uber for comment.

Farr said he expects city staff to report on possible options and costs to continue the service if the original operator does back out of its contract, including the feasibility of a city takeover of operations.

That would likely add an unexpected $500,000 or more to the annual city budget - even as council struggles with a pandemic deficit that could balloon beyond $60 million this summer.

The bike share program started in 2015 using a $1.6-million Metrolinx grant to allow the city to buy the distinctive blue bikes and rental hubs set up throughout the lower city.

The city owns that bike infrastructure, but Social Bicycles ran the system via subcontracted operators who collected membership, advertising and rental fees. The bike-share company rebranded as Jump in 2018 - just months before being purchased by ride-hailing giant Uber.

In recent years, city council has pushed SoBi to expand the rental hub system beyond the lower city and onto the Mountain, into Dundas and Stoney Creek.

More to come.