Item - 2026.PA20.6

The President, Toronto Parking Authority recommends that:  

1. The Board of Directors of the Toronto Parking Authority authorize the President, Toronto Parking Authority, to non-competitively extend the existing agreement with Shift Transit Inc. for a period of seven (7) months, ending October 31, 2027, at a total value not to exceed $14 million, excluding Harmonized Sales Tax, on terms and conditions satisfactory to the President and in a form satisfactory to the City Solicitor.

The purpose of this report is to seek approval from the Board of Directors of the Toronto Parking Authority (TPA) to extend the current agreement with Shift Transit Inc. (Shift) for the operation and administration of the Bike Share Toronto system for seven (7) additional months, to October 31, 2027. Management is requesting this extension to provide sufficient time for Management and the Board to complete the necessary due diligence before determining any future changes to the current operating model. The extension also reduces operational risk by maintaining continuity through the busy 2027 summer season.

The operating cost of the extension is forecast to be $14.0 million, an increase of $3.9 million compared to 2026. The increase reflects higher activity levels associated with forecast ridership growth, inflationary cost pressures, and the scope, scale, and complexity of the work required. The proposed extension would secure continued service delivery across key operating categories, including bike and station maintenance, rebalancing, valet services, and installation and decommissioning services. These terms are consistent with current market rates and are not expected to result in a material increase in cost on a per-ride basis compared to 2026.

The current agreement with Shift, effective April 1, 2020, was approved for a five-year term, with an option to renew for two (2) additional one-year terms. The agreement expires on March 31, 2027.

On December 12, 2025, the Toronto Parking Authority Board adopted the 2030 Bike Share Toronto Growth Strategy – Ride More, Connect More, which directs Toronto Parking Authority to develop a network capable of supporting 14 to 16 million trips annually by 2030. This represents the potential to double ridership compared to 2025 levels. Achieving this scale will require a more robust, scalable, and sustainable operating model.

As background, Bike Share Toronto has changed markedly since the current agreement was first established. The system is significantly larger, geographically dispersed, and operationally complex. It operates in all 25 wards, includes pedal bikes and e-bikes, relies on expanded valet services, supports seasonal operations, and has emerged as an indispensable publicly provided transportation service for Torontonians. These changes, coupled with higher customer expectations, necessitate a robust assessment and determination of the right operating model that will future proof the Toronto Parking Authority for the next phase of our growth agenda.   

To support this work, Toronto Parking Authority is undertaking an operating model assessment to identify the organizational structure, capabilities, resources, systems, and service requirements needed for the next phase of Bike Share Toronto. Concurrently, Toronto Parking Authority is issuing a Request for Information (RFI) to better understand market capacity, service delivery approaches, and opportunities to improve operations, maintenance, customer service, valet services, e-bike support, technology integration, and network performance.

The proposed seven-month extension will provide Toronto Parking Authority with the time required to complete the operating model assessment, review the Request For Information results, and prepare a comprehensive Request for Proposals (RFP), anticipated to be issued in Quarter one 2027. It will also maintain service continuity through the busiest portion of the operating season and avoid the risks associated with transitioning service providers during peak ridership.

Given the complexity of the Bike Share Toronto system, and the time required to ramp up any alternative options related to service delivery, the non-competitive extension of the existing contract with the existing supplier would minimize duplication of transition costs and also offer the least risk to the day-to-day business operations.

Accordingly, the proposed extension is recommended as a prudent, time-limited measure to preserve service continuity, reduce potential transition risk, and position Bike Share Toronto for sustained growth.

Based on projected costs and historical expenditures under the agreement, the total value of the extension is not expected to exceed $14.0 million, plus Harmonized Sales Tax (HST). The forecast value represents an increase of $3.9 million compared to 2026.The final value will depend on projected ridership in the upcoming year and on the scope of service delivered as part of the extension. All fees above are excluding Harmonized Sales Tax.