Bike rental wars: ofo, Mobike apply for licences; Mobike scraps deposit

Singapore

BIKE sharing operators ofo and Mobike have applied for operating licences with Singapore's Land Transport Authority (LTA), the companies said on Friday.

Their applications came ahead of a July 7 deadline imposed by the Singapore regulator. Dock-less bicycle rental companies that fail to apply by that date will have to shut down their operations.

Beijing-based ofo said that its application was for its current fleet of 80,000 bicycles. Its Singapore general manager Yau Fun Heng said in a statement: "The company remains confident in the bike-sharing industry in Singapore. We will continue working with our partners to positively contribute to the Singapore government's vision of a car-lite nation."

Mobike Singapore, the parent company of which is also based in Beijing, said on Friday that it will no longer require security deposits in Singapore; this move follows the competitor oBike having come under fire for failing to return monies to its customers.

In a statement on Friday, Mobike announced a deposit-free policy for new and existing users who have registered a Mobike account with a Singapore phone number. The one-time, refundable deposit of S$49 was introduced at Mobike's launch in Singapore in March 2017, to encourage the use of the smart bikes.

Mobike said the company has determined through data-driven analysis that its services are "widely used" in Singapore, and thus riders can be exempted from putting down a deposit.

Existing users can request a refund by logging into the mobile app and selecting the "Refund" button at the bottom of the "My Wallet" page.

Upon receiving a request, Mobike will start the refund process immediately; the credit will be refunded into user's account within 10 working days, the company said.

Added Sharon Meng, country manager of Mobike Singapore: "We would like to thank our riders in Singapore for helping to cultivate a healthy and enjoyable bike sharing experience for all. In our show of appreciation, we are waiving deposits for Singapore-registered users.

"We are also thankful to the local authorities for their support for user education and improving infrastructure. We are fully prepared to work with the local authorities, and will continue investing in technologies to improve our services."

Mobike's latest announcements came after oBike on Monday suddenly announced the shutdown of its Singapore operations, citing difficulties in complying with the new LTA regulations. It has since come to light that the company has had cash flow problems as well. oBike customers have raised concerns about recovering their security deposits because oBike removed the refund-request feature in its app before announcing its shutdown.

Earlier this month, GBikes, which is supported by financial technologies firm FinTechSG, also told users that it would not apply for the LTA licence, and would end its service in July.