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Solvency problems involving the company providing the Smart Bike Share service may lead to interruptions in the operation of the Smart Bike Share service

Tartu City Government Press Release

Tartu rattaringluse rattad parklas Photo: Ketlin Lääts

25 April / Bewegen Technologies Inc., the Canadian company providing the Smart Bike Share service in cooperation with the Tartu City Transport Department, has encountered financial difficulties and is looking to withdraw from its existing contract with the city.

Bewegen Technologies Inc. provided the City of Tartu with the bicycles and charging docks that comprise the Smart Bike Share system and also offers a maintenance and development service for the Smart Bike Share information system, without which the Smart Bike Share system would be unable to function on a daily basis. The company has been the subject of restructuring proceedings in Canada, during which Bewegen has proposed to the City of Tartu that it would like to terminate the existing contracts and enter into a contract on new terms. The city is unable to accept the proposed conditions in accordance with Estonian law. The current contract runs until June 2024.

The city has held talks with Bewegen to continue cooperation; unfortunately, a situation in which Bewegen Technologies Inc. decides to no longer honour existing contracts and unlawfully and unilaterally withdraws from the provision of the Smart Bike Share service cannot be ruled out at this time. Also, the restructuring proceedings initiated by Bewegen may escalate into bankruptcy proceedings, and then the contracts with the city will be terminated as part of the bankruptcy proceedings. In both cases, a short-term interruption to the Tartu Smart Bike Share service is also possible.

Raimond Tamm, Deputy Mayor of Tartu, said that the continued functioning of the Smart Bike Share service is very important for Tartu and it will remain in Tartu irrespective of the subsequent actions taken by Bewegen. ‘We have been in contact with the representatives of Bewegen and have attempted to find ways to continue cooperation at least until the end of the current contract. However, we have also prepared for the possibility that Bewegen will actually stop providing the service to the city. Tartu will continue to provide the Smart Bike Share service even if Bewegen and the city are no longer partners,’ said Tamm.

The City of Tartu is seeking solutions to continue the Smart Bike Share service in a way that brings as little inconvenience as possible for the users of the Smart Bike Share service. Both in cooperation with our current contractual partner and once the current cooperation ends.

The City of Tartu apologises for any possible inconvenience and is making every effort to avoid the interruption of the service and to ensure that it is restored as quickly as possible should an interruption occur.

Hendrik Kuusk

avalike suhete osakond

Tel: 736 1123
Mob: 5393 3648

Last changed 25.04.2023