Citi Bike Poised for a Big Infusion of Cash
ANDREW TANGEL
Citi Bike and its operator stand to get tens of millions of dollars to expand New York's popular bicycle-sharing program in a deal that could close within a week, according to people familiar with the matter.
REQX Ventures, an affiliate of real-estate giant Related Cos., is close to hammering out an agreement that could enlarge the footprint of Citi Bike to upper Manhattan, into Queens and further into Brooklyn over the next few years, these people said. The number of bikes would nearly double, from 6,200 to about 12,000.
The pact would allow Citi Bike's operator, Alta Bicycle Share Inc., more flexibility in raising the price of the $95 annual memberships, which could increase to $140 or more, these people said. More than 100,000 annual memberships have been sold.
As part of the tentative agreement, REQX Ventures would secure a controlling stake in Alta, these people said, thrusting the Related affiliate to the forefront of a budding industry spreading across the U.S. Alta, based in Portland, Ore., runs bike-share and rental systems in cities from Boston to San Francisco.
http://online.wsj.com/articles/citi-bike-poised-for-a-big-infusion-of-cash-1406163340
