Toronto Island family bike rental loses city deal after 32 years in business

“It’s the end of an era” for a family-owned and operated bike rental company on Toronto Island.

Toronto Island Bicycle Rental will be shuttering its doors this summer after 32 years in business, as another company prepares to take over the city contract.

“There’s a lot of outrage,” said Priya Rao, who was nine-years-old when her parents took over the business. “The city should be supporting local businesses, small businesses, and mom-and-pop shops, so there’s a lot of anger that a large company was awarded this business.

“It doesn’t bode well for entrepreneurs.”

‘Out of luck, out of business and out of a job’

Starting May 1, a new company, which hasn’t been made public yet, will be providing bicycles on the islands – news that Rao told CP24 has devastated the owner’s.

“We are shocked that the city would place such minimum financial gain over the livelihood of two families,” she explained. “This really leaves my parents in the lurch because this is their retirement plan.”

Gordon Chhor co-owns Toronto Island Bicycle Rental with the Rao family. He took it over its management when Priya’s father, Hari Rao, retired.

Chhor started working at the company in 1987 when he was in high school – and Rao considers him family. She’s even the godmother to his son, Auston.

“We are out of luck, out of business and out of a job,” Chhor said.

His son Auston worked alongside 10 other university and high school students during the summertime, many of whom had already secured employment at the bike rental company this year.

‘Real predicament': Bidding process started in February

In late February, the city issued a request for proposals on the contract. After being the successful bidder for dozens of years in a row, Chhor said he and the Rao family were only informed last week that they would not be receiving the permit.

Now the families and students are in a “real predicament”, Chhor says, because the school year is almost over.

“Some of them were in tears and some of them were in shock,” he added. “I said listen, ‘anyone need a good reference?’ I’m trying to do anything I can to help, but that’s really all I can do.”

The seasonal business employed up to 12 people during the summer months and many were returning employees.

The families were given until Apr. 24 by the city to vacate the premises – but with the Centre Island ferry only resuming operation 10 days prior, the “fall out” from the notice is immense in order to meet the quick approaching deadline.

‘City anticipates a significant increase in revenue’

Matthew Cutler, a spokesperson for the Parks, Forestry and Recreation department, told CP24 in an email that “the city anticipates a significant increase in revenue to support Toronto Island Park.”

Cutler also assured that visitors will have “access to a brand new fleet of bicycles” and there would be an “overall refresh” of the bike rental facility.

According to the city, net sales for the bicycle rental concession were just over $435,000 last year.

The city would not confirm the name of the company taking over the bike rental business because it’s currently negotiating a new agreement with the provider. This will be announced May 1.

Cutler explained there were only two registered bids for the upcoming contract. The new deal with a different company will be five years for May 1 to Sept. 30, 2021.

Track record worthless: ‘It came down to money’

But this “increase in revenue” for the city means the “end of an era” for a family who had operated the contract for more than 30 years.

“It came down to money,” Rao stated. “The other company was able to outbid us by an exorbitant amount of money.”

And Chhor agrees.

“Emotions are raw right now that the city didn’t even consider our track record when weighing competing proposals. Our track record with operation and safety is worth nothing.”

The Rao family is trying to find a way to appeal the city's decision which they don’t feel was “fairly assessed,” but so far they haven’t had much luck.

They contacted the Parks, Forestry & Recreation department and met a dead end.

“We can’t get a clear answer on how we can repeal the decision,” Rao said.

In the meantime, they have filed a complaint with the city ombudsman office. They are currently waiting to hear back.

‘Ambassadors of the city’

The situation is sad, says Rao.

“We felt like we were ambassadors of the city, not only doing a service to the city but also to tourists visiting the island.”

This place is a source of fond memories for Rao and her older brother, Chico.

The island coloured their summers because the pair spent all their time playing there while their parents where working when they were young, up until they started working.

“That’s why I like to say I grew up on the island even though I didn’t live there,” Rao explained.

The Rao family started the business several decades ago before the island became an oasis for Torontonians, Chhur said.

Now, more than 1.3 million people visit the every summer.

They also expanded the bike rental service from 20 single-seated cruiser, bringing in tandem bicycles and quadricycles or “Flinstone cars” from a connection in Italy.

“This isn’t just a simple bicycle rental,” said Rao.

Bike sale starts Easter weekend

Toronto Island Bicycle Rentals will be holding a massive bike sale to offload their stock starting Easter weekend.

If you're in the market for a cruiser or tandem bike, there are some deals to be had. Prices start at $75 for single bikes, $100 for tandems and if you want something for the whole family, quadricycles or "Flinstone cars" will start at $500.

The bike sale will take place on Centre Island from Friday, Apr. 14, through the weekend, between 12 p.m. to 5 p.m.

On the event's Facebook page the family writes: "With a heavy heart and one final time, we hope to see you on the Island!"