The end of a life cycle? Mobike calls it quits in Singapore

Another major bicycle-sharing operator bites the dust.

Mobike has made an application on Monday (March 11) to seek consent to surrender its bicycle-sharing licence in Singapore, the Land Transport Authority (LTA) confirmed.

Under the Parking Places Act, a bicycle-sharing licence may only be surrendered with the written consent of the LTA.

Speaking to local media, LTA said today (March 12) that it is "assessing Mobike’s request, and will work with the company to ensure that it has fully explored all options, including its proposal to transfer existing assets or operations to existing licensees, to minimise impact to consumers."

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LTA's spokeperson also added that if Mobike's application to surrender is granted, the operator must "conduct a proper exit by removing all their bicycles from public places."

Last, but certainly not the least, the spokesperson also assured paying customers of Mobike: "Mobike must also provide refunds for user deposits and pre-paid credits in accordance with the company's terms and conditions."

Other than surrendering its bicycle-sharing license, Mobike has also withdrawn its applications for a sharing licence for personal mobility devices (PMD) and to increase its bicycle fleet size.

Mobike said on Monday it would pull out of some Asian countries and re-evaluate its units in other overseas markets amid a wide-scale contraction in the market and the bankruptcy of top competitor Ofo.

“We are currently seeking to optimize our international business. On that principle, Mobike will close in some countries in Asia... At the same time, we will continue to evaluate other countries and regions,” the company said.

TechCrunch earlier reported that Mobike laid off its Asia Pacific operations team, including staff and contractors in Singapore, Thailand, Malaysia, India and Australia.

The move comes as China’s bike-sharing industry - which once included multiple firms valued at over $1 billion each - is experiencing a sharp downturn, forcing several closures and acquisitions after years of breakneck growth.

Mobike is the third Chinese bike-sharing company to face problems in the Singapore market - ofo was suspended for failing to meet the LTA's regulatory requirements last month, and oBike abruptly quit in 2018.

Mobike is currently the largest bike-sharing operator in Singapore, with a licence to operate 25,000 bikes.

Its withdrawal would leave smaller bike-sharing players like SG Bike, Anywheel, Grabcycle and Qiqi Zhixian as the only options.