Lessons Learnt from Abrupt Exit of oBike and New Requirements for Licensees for Similar Public-subscribed Transport Schemes

When dockless bicycle sharing services first entered Singapore, they offered Singaporeans another convenient travel option. At that time, LTA deliberately adopted a light touch regulatory approach towards this new innovative business model. Many users have used the services for their commuting needs. However, the proliferation of the services also led to indiscriminate parking and many stranded bicycles. To address these disamenities, we started licensing bicycle-sharing operators in 2018 under the Parking Places Act. That was when oBike made the commercial decision to close its operations.

In February 2020, the Shared Mobility Enterprises Act was passed to enhance the licensing regime for shared mobility devices. Under the regime, licensees are required to have plans to remove their devices in a timely manner should they exit the market. They are also required to furnish a performance bond to LTA to ensure compliance with their licence conditions, or be used to offset the impact of a sudden exit. Whilst all current licensees do not require deposits from consumers, the enhanced regulations also allow LTA to prohibit bicycle-sharing licensees from doing so should the need arise. This strengthened regulatory framework provides a foundation for sustainable and responsible device-sharing operations in Singapore.

In addition, companies and consumers with claims against any operator can seek redress through the civil courts. Consumers may also seek assistance from the Consumer Association of Singapore (CASE).