Bike-sharing giant ofo has pulled out of markets such as Australia and Israel, and intends to shut down much of its operations in the United States.
However, the company said it remains committed to the Singapore market.
Over the weekend, some ofo users in Singapore claimed to have received an email from ofo saying that it was “leaving” the market. ofo clarified that the email originated from its team in the US, in which the company was scaling back its operations significantly, said a report by Todayonline.
Mr Christopher Hilton, ofo’s head of public policy and communications, said that the company's submission to the Land Transport Authority (LTA) for a licence to operate an 80,000-strong fleet under a new government licensing scheme was a “strong demonstration” of ofo's “continued commitment to Singapore”.
As competition heats up in its home market China, ofo is reportedly winding down operations and withdrawing from Australia and Israel. US operations has also been scaled down. The company is letting go of a vast majority of its workforce in US as it prioritises growth in viable markets that support alternative modes of transport.
In Singapore, bicycle-sharing operators are preparing for a new licensing regime aimed at curbing indiscriminate parking. For instance, they have to make sure users practise responsible parking. Commuters will be required to scan a QR code at designated parking spots as proof of proper parking before they can end their trip.
