oBike halts Singapore operations due to regulatory hurdles

Singapore-based oBike has ceased its operations in the city-state, starting today, citing regulatory difficulties in fulfilling the new requirements and guidelines by Singapore’s Land Transport Authority, it said in an announcement on Facebook.

“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. This decision will not affect oBike’s operation in anyway in countries outside of Singapore,” said the startup.

oBike added that users who still wish to use its services in Singapore can continue to do so with GrabCycle.

To recap, oBike partnered ride-hailing major Grab in January, which saw oBike integrate GrabPay into its mobile app, before expanding the partnership into GrabCycle. Grab is an investor in oBike when the bike-sharing startup closed its $45 million Series B last August.

However, Grab has clarified that since oBike has ceased its operations in Singapore, GrabCycle will be offering bikes via its other bike-share partner Anywheel.

We understand that oBike has decided to cease operations in Singapore due to their difficulties in meeting regulatory guidelines. This means that we will no longer be able to offer oBike’s bicycles on the GrabCycle marketplace effective today, as oBike will not have the appropriate bike-sharing license to operate in Singapore, nor will they be maintaining their fleet of bicyclesAs such, we will be waiving all existing GrabCycle subscription fees and deposits, and offering a four-week free trial on GrabCycle for current users so that they can try our newest bike-share partner, Anywheel,” said a Grab spokesperson in a media statement.

Grab also added, it will continue to serve and grow GrabCycle.

This is not the first shut down of oBike operations, as local media in Melbourne, Australia, have also pointed out that the dock-less bike-sharing service left the city early this month ahead of stricter regulations to be imposed by the local government.

Under the new rule, the startup would be fined A$3,000 if an abandoned bike is found blocking the street for two hours. It was also asked to provide management plans for abandoned and damaged bikes.

In Malaysia, it is still business as usual for oBike. However, its journey in major cities in Malaysia is not without hurdles. There were complaints that bikes were seen abandoned along streets and housing areas, and users padlocking the bikes, deprived others of the service.

oBike recently launched its services in the southern state of Malaysia, Johor Bahru this February, but over 100 bikes have gone missing since. Local councils in Malaysia are still seizing its bikes for causing obstruction.

The Singapore-based startup is not the only one halting its operations – Hong Kong’s Gobee has also paused its services in Paris and Brussels.

Other bike-sharing startups in the city-state include Mobike, backed by major investors such as Tencent, Sequoia Capital China, and ofo, which has secured investments from Alibaba. Both are present in Singapore and are expected to meet the regulatory deadline set by the local government.

Also read:

Bike-sharing firms face operational hurdles in US as cities protect sidewalks

HK bike sharing startup Gobee halts operations in Paris

The post oBike halts Singapore operations due to regulatory hurdles appeared first on DealStreetAsia.

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