Ofo must remove all bikes from public spaces by March 13 or else risk having its operating license fully voided

Chinese bike-sharing startup Ofo has had its operating license pulled by the Singapore Land Transport Authority and all bikes must be removed from city streets by March 13, according to Channel News Asia.

Ofo runs the risk of having its license fully cancelled if it does not remove the bikes by the deadline.

It is possible Ofo may not be able to remove the bikes because two weeks ago the company fired all of its staff in Singapore, some of whom were let go over the phone. The LTA said it will remove the bikes on March 14 to prevent public clutter.

The LTA is suspending the license because it failed to comply with regulatory requirements in Singapore — specifically the proper implementation of their QR code system. This means the company was not following new rules that requires bikes to be parked within designated parking areas. Furthermore, Ofo did not reduce its fleet to below the 10,000 maximum requirement.

In mid-January, the LTA gave Ofo one month to comply with the regulations or risk suspension. The company missed the deadline.

Also Read: Bike-sharing startup Ofo terminates staffs over the phone without compensation

Ofo is struggling to stay afloat in China and the Singapore situation feels like a company that is fighting to survive domestically and thus is struggling to manage its international business interests.

Ofo is backed by Alibaba. Last December the CEO Dai Wai said his company is facing “immense cashflow problems”.

Also Read: Kick start your Echelon experience with Echelon Roadshow 2019 Singapore

Once awash in pay-per-use public bicycles, the bike-sharing bubble has popped in Singapore, highlighted by the disgraceful exit of oBike last July.

MoBike and the smaller SG Bike are the two companies left with operating licenses. MoBike appears to be benefiting from the upheaval in the Singapore market, having applied to grow its fleet in the next licensing cycle, according to The New Paper.

In China (the global bike-sharing headquarters), it looks as if MoBike has the inside track for what will be an important, disruptive and rocky year for the industry.

—

 

 

The post Ofo operating license suspended in Singapore appeared first on e27.