Ailing Chinese bike-sharing service Ofo gets Singapore licence suspended
- The Beijing-based firm, which is on the verge of bankruptcy, will have to remove all its 25,000 yellow bicycles from the island nation before March 13
- Ofo’s woes are casting a shadow over the bike-sharing industry, which seemed a potentially lucrative idea when it first emerged
Struggling Chinese bike-sharing start-up Ofo had its licence to operate suspended on Thursday by the Singapore authorities, who said it had breached regulations despite being given ample time to comply.
The Beijing-based firm will have to remove all its 25,000 yellow bicycles from the island nation before March 13.
Singapore’s Land Transport Authority (LTA) said it would only lift the suspension if Ofo met all regulatory requirements, including implementing a QR code system.
“LTA will continue to monitor Ofo’s efforts to comply and may cancel Ofo’s licence if Ofo does not show satisfactory progress,” it said in the statement.
Ofo has been facing cash flow problems and is on the verge of bankruptcy. It has shut down its operations in Australia, Austria, and Germany, among other locations.
In an internal note to employees last month, Ofo founder and CEO Dai Wei said: “During the past year, we have borne immense cash flow pressure. We have to return users’ deposits, pay back our suppliers, and keep the company running. We have to turn every yuan into three.”