John Brothers, Principal of Quidoo Consulting, writes about the Montreal-based company Bixi who are mostly known for its Bixi Bikes. Just recently, Bixi filed for bankruptcy protection. The reason? Bixi is in major financial distress and its bikes have proven to be too “expensive to build, operate and maintain”.
Bixi operated as a social enterprise by designing their bike systems “using solar power and docking stations that relied on wireless networks for communications.” It’s a tumultuous ride for Bixi, but the experience serves as a learning lesson for many social enterprises in terms of financing approach and how they may better serve their communities through that approach.