Security Deposit or Performance Bond by Shared Bicycle Operators to Ensure Protection of Deposits or Prepayments Made

Mr Lim Biow Chuan asked the Minister for Transport whether LTA will require shared bicycle operators to place a security deposit or performance bond to ensure that deposits or any pre-payment made by bicycle hirers or consumers are protected.

The Land Transport Authority (LTA) will study the need for bicycle-sharing operators (BSOs) to place a security deposit or performance bond if there are BSOs which require user deposits when the licensing regime is implemented from October this year. Currently, seven BSOs have applied for licences. None of them require user deposits. A number of them are existing BSOs who, even under the light touch approach adopted today, do not require user deposits.

To facilitate the growth of this nascent industry and ensure that bicycle sharing services remain affordable, LTA has refrained from over-regulating BSOs as this can increase their compliance costs, which could, in turn, be passed on to users. The licensing regime is primarily targeted at minimising disamenities to the public caused by the indiscriminate parking of shared bicycles. To be licensed, BSOs must put forward a responsible and sustainable bicycle management plan to operate in our local context.

Going forward, LTA will monitor and strengthen the licensing regime as necessary, as well as work with relevant organisations, such as the Personal Data Protection Commission, the Consumers Association of Singapore, National Parks Board and the Town Councils on public education and outreach, so as to strike the right balance between the viability of the industry and the interests of users and the general public.