Singapore’s upcoming licensing for dock-less bike-sharing services has claimed its first scalp after oBike — a Singapore-based company run by Chinese founders — announced that it would cease its service in the country ahead of the implementation of regulations.
The Land Transport Authority (LTA) is introducing measures to protect Singapore’s streets from a glut of bicycles left all over the place, as photo essays from China and beyond have cautioned can happen.
oBike launched its service at the beginning of 2017, and it claims over one million registered users but still it will end its service today, June 25. oBike said it will continue to run operations in other markets, although it hasn’t said if/when it will refund Singapore-based users with the deposits that they paid upon registration.
“oBike strongly believes and is committed to provide [sic] dock-less bicycle sharing service that would benefit users’ commuting and Singapore’s transportation system, however it is with regret that the new regulation measures do not favour this belief of ours,” the company said in a statement that posted to Facebook.
This move comes weeks after oBike exited Melbourne in Australia following issues with regulation.
oBike has directed its customers to the newly-launched bike platform from ride-hailing giant Grab, which went live in March. Other alternatives in Singapore also include services from Chinese duo Ofo and Mobike.
Grab said today it has removed oBike from its list of service providers — its platform aggregates other services into a single place — and added new options.
“As of today, oBikes will no longer be available on our platform. We understand this may impact your GrabCycle experience. Therefore, we will be waiving your active subscription fee, and refunding your deposit,
if any by 26th June. We will also add a complimentary 4-week GrabCycle subscription to your account to try our newest partner, Anywheel,” it wrote in a blog post.
Grab is actually an investor in oBike, as TechCrunch reported last year, after taking part in its $45 million Series B round that was announced in August 2017.
SINGAPORE: Bicycle sharing service oBike will stop operations in Singapore from Monday (Jun 25) because of difficulties in meeting the new requirements put in place by the Land Transport Authority (LTA) to tackle indiscriminate parking.
"oBike is announcing its decision to cease operation in Singapore as a result of difficulties foreseen to be experienced to fulfil the new requirements and guidelines released by LTA towards dock-less bicycle sharing in Singapore," the company said.
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oBike added that it strongly believes and is committed to provide dock-less bicycle sharing service that would benefit users’ commuting and Singapore’s transportation system, but regrets that "the new regulation measures do not favour this belief of ours".
The ceasing of oBike's operation is limited only to Singapore, and does not apply to its services in other countries.
A screengrab taken on Monday (Jun 25) of the oBike announcement on the app. (Photo: Aqil Haziq Mahmud)
Users who still wish to use oBike services in Singapore can continue to do so with GrabCycle, said oBike. Users are advised to contact GrabCycle directly for further enquiries regarding the respective oBike services, it added.
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Grab clarified in a statement shortly after that oBikes will no longer be available on the GrabCycle app from Monday as well.
"We understand that oBike will be ceasing their operations in Singapore. As such, we will no longer be able to offer their bikes on our GrabCycle marketplace app," a Grab spokesperson told Channel NewsAsia.
The company also said in a statement on its website that it will waive all active subscriptions and refund any deposits by Jun 26.
All oBike users who currently possess an oBike Super VIP membership will still be able to use oBike services in all other operating countries except for Singapore, said oBike.
The company also expressed its "sincerest appreciation to more than 1 million users" in Singapore that have supported its services since it was launched in January last year.
The LTA has set a Jul 7 deadline for bike-sharing firms to submit applications for a licence to operate in public places or cease operations.
Those who submit them will have their applications evaluated and licence awarded by September.
The move followed the passage in May of the Parking Places (Amendment) Bill, a piece of legislation that was aimed at tackling the indiscriminate parking of shared bicycles.
The licensing framework requires operators to ensure that shared bike users scan the unique QR code at the parking location as proof of proper parking before they can end their trip. Users who park indiscriminately will continue to be charged, until they return the bicycles to a designated parking space.
oBike's announcement comes just days after it confirmed to Channel NewsAsia that it would submit an application for a licence before the LTA deadline despite an expected "financial strain" on its current business model.
Four other bike-sharing firms - Mobike, ofo, SG Bike and Anywheel - also plan to meet the deadline.
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Bicycle sharing company oBike is ceasing operations in Singapore from June 25, citing difficulties in complying with regulations, the company announced on a Facebook post on Monday.
Bicycle sharing company oBike has become the second dock-less bicycle business to shutter its Singapore operations rather than apply for a licence from the Land Transport Authority (LTA).
Singapore-based oBike said in a Facebook post on Monday that it will cease operations in its home base from June 25.
"oBike is announcing its decision to cease operation in Singapore as a result of difficulties forseen to be experienced to fulfil the new requirements and guidelines released by Land Transport Authority towards dock-less bicycle sharing in Singapore," the company said. "oBike strongly believes and is committed to provide dock-less bicycle sharing service that would benefit users' commuting and Singapore's transportation system, however it is with regret that the new regulation measures do not favour this belief of ours."
The move comes after GBikes, which was supported by financial technologies firm FinTechSG, told users earlier this month that it would stop its service in July.
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Singapore's bicycle-sharing companies, which including Mobike, ofo and SG Bike, will be required to be licensed by the LTA from July 7. As part of the licensing regime, operators will face restrictions on fleet size, among other obligations mostly related to indiscriminate parking.
oBike, which said that it has more than one million users in Singapore, launched in January 2017. The company said on Monday that users will still be able to use its services through GrabCycle, which is a partner of oBike. Grab has refuted that position, however, saying in a statement that oBike's bicycles will no longer be available on Grab's platform.
"We will no longer be able to offer their bikes on our GrabCycle marketplace app," Grab said. "We are strong believers in the bicycle- and personal mobility device-sharing opportunity, and its impact on the livability of our future cities. We will continue to serve and grow GrabCycle, as we work towards our vision as the everyday app with multiple transport options and daily essential services for consumers."
Singapore is not the only market to try to control dock-less bicycle sharing businesses. Earlier in June, oBike said it was exiting the Melbourne market due to rules against abandoned bicycles.
