LTA cancels ofo’s operating licence
Chinese company ofo will no longer be able to offer its dock-less bicycle-sharing services in Singapore after the Land Transport Authority (LTA) cancelled its operating licence yesterday. This is for missing a March 13 deadline to remove its bicycles from public spaces.
LTA had issued a notice of intention to cancel its licence on April 3.
"As ofo has not provided LTA with sufficient justifications on why its licence should not be cancelled, LTA cancelled ofo's bicycle-sharing operating licence on April 22," a spokesman for LTA told The New Paper.
"ofo will not be able to offer dock-less bicycle-sharing services in public places in Singapore without this licence."
Unlicensed bicycle-sharing operators can face a fine of up to $10,000 and/or a jail term of up to six months, with a further fine of $500 for each day the offence continues after conviction.
ofo was one of three bicycle-sharing start-ups launched in Singapore in 2017, along with oBike and Mobike.
The bicycle-sharing industry had a promising start but ran into difficulties last year when, oBike abruptly announced its closure. It failed to refund $8.9 million worth of deposits from more than 220,000 users over difficulty in meeting new parking regulations imposed by LTA.
LTA suspended ofo's licence on Feb 14 after ofo refused to reduce its 90,000 bicycle fleet to LTA's stipulated 10,000 and to implement LTA's Quick Response code-based parking regulations, which ensures bikes are parked in their designated areas.
Mobike submitted an application to LTA to surrender its bicycle-sharing licence in Singapore on March 12.
Should Mobike lose its licence, Singaporean start-up SG Bike will be the only player left in the field with a proper licence and a fleet of 3,000.
Anywheel, Qiqi Zhixiang and newcomer Moov Technology have only sandbox licences.
Anywheel is licensed to run a 10,000 bicycle fleet while Qiqi Zhixiang and Moov each run 1,000 bicycle fleets.
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