The oBike bicycle-sharing service has ceased its Singapore operations, citing the new Land Transport Authority (LTA) regulations on the industry as a reason.
“(Due) to the new regulations imposed by the authorities, this will not be a viable business model for oBike and we foresee that it will only cause the company to sustain further losses,” said the company in a media statement on Monday (25 June).
“We truly believe that bike-sharing as a (form of) first and last mile transportation, has an important role to play in a car-lite society,” it noted.
The Singaporean company, which launched here in February last year, will continue to offer its services in other countries. Users with oBike Super VIP memberships still be able to use them in the other countries where oBike operates.
Meanwhile, those looking to still make use of oBike’s services here can turn to the GrabCycle app. However, GrabCycle said in a message to users on its app that it is “no longer able to offer oBikes” on its service and that it has “temporarily stopped new user sign up”.
Under the LTA’s new regulations, bicycle-sharing services here will have to submit their applications for operating licenses by 7 July.
The assessment criteria for these applications will include operators’ ability to “manage indiscriminate parking by its users, its fleet utilisation rate, and other relevant factors such as the demand for the service and availability of parking spaces”, said the LTA in a release in May.
The move comes following the passing of the Parking Places (Amendment) Bill in March, which was aimed at addressing growing complaints of indiscriminate parking by shared bicycle users.