Bike-sharing company oBike’s Australian future uncertain after overseas liquidation


July 06, 2018 17:05:25

The future of oBike in Australia is uncertain after the bike-sharing company went into liquidation in Singapore and pulled out of operations in Melbourne.

The company, which permits customers to rent bikes by means of an app, cited government regulations behind its decision to pull out of the two cities.

However it stays unclear whether or not the Australian arm of the business will proceed to function.

oBike has not returned calls or emails from the ABC — telephone numbers have been disconnected and emails bounce again — but the company told the ABC last month via Facebook it was “not leaving Australia”.

Some oBike customers in Australia have reportedly been struggling to get well their deposits, which customers pay once they join the bike-sharing service by way of the app.

FTI Consulting has been appointed provisional liquidators for oBike’s mother or father company in Singapore and in a press release stated it was working with the Singaporean Government to gather bikes from across the metropolis and to get well deposits owed to clients.

“The Provisional Liquidators are aware of the media reports surrounding the refunds requested by deposit holders,” the assertion learn.

“[We] will be liaising with the company’s director and shareholder/founders regarding this issue and to discuss whether it is their intention to provide such a refund.”

Bikes muddle public area

oBike is one among 4 dockless bike-sharing operators in Sydney.

Between them, the opposite operators — Ready Go, ofo and mobike — have hundreds of bikes littered round internal Sydney and Melbourne, recurrently noticed up timber, deserted round parks, in waterways and on footpaths.

Councils had complained their staff have been left to select them up and the Sydney council of Waverley even impounded dozens of them that they had collected from public areas.

oBike recently pulled out of Melbourne after the council began to impose giant fines for discarded bikes.

John Wakefield, the mayor of Waverly Council which impounded greater than 100 bikes in February, stated he “wasn’t surprised” oBike had gone into liquidation in Singapore.

“I don’t think there’s enough room for so many operators, I don’t think there’s enough of a market to share,” he stated.

He stated share-bike providers that required customers to place their bikes again at a dock would work higher in Sydney.

“It’s the dockless model that creates the problem,” he stated.

However the infrastructure required to put in docks across the metropolis the place the bikes can be locked would value “millions” of dollars, he stated.

Business mannequin about knowledge, not rental charges

Bike-sharing corporations make a big portion of their income by promoting customers’ knowledge to different corporations, in response to Kim Doh, a senior business analyst with IBIS World.

“The business model for bike-sharing services has more to do with data mining, advertising and turning a profit for interest on deposits on the bike rental … as opposed to the $2 per 30 minutes they get from the person riding it,” she stated.

Ms Doh stated rising public consciousness of knowledge privateness and concern about knowledge breaches made the businesses weak.

The primary hurdles for all bike-sharing corporations in Australia, she stated, can be vandalism and managing provide and demand.

“At the moment in Melbourne and Singapore there are just way too many bike sharing start-ups and not enough riders,” she stated.

“There are too many bikes flooding the street — that ultimately leads to chaos and vandalism.”

The different key drawback was authorities laws and the large fines the businesses are confronted with from councils.

“If they want to continue operating in Australia they’re going to have to negotiate with the government to find something that will work for both sides,” she stated.

Despite the company’s troubles in Australia and Singapore, oBike has simply expanded in Europe — just lately beginning operations within the Italian cities of Florence and Milan.









First posted

July 06, 2018 16:00:04

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