Chinese bike sharing firm Ofo pulls out of Australia and Israel in the wake of stiff competition at home

Ofo, one of China’s biggest bike-sharing platforms, is pulling out of Australia and Israel as competition heats up at home with rivals offering deposit-free services in the latest effort to compete in the cash-burning business.

Over the next two months the Beijing-based start-up will wind down operations in the Australian cities of Adelaide and Sydney, including the removal of bikes, according to a company spokesman.

The company will also withdraw from Israel, five months after it launched trial services in the country, its only foothold in the Middle East.

“Our focus now is on priority markets and moving towards profitability,” the spokesman said in response to inquiries on Tuesday. “We are communicating with our [overseas] markets about plans moving forward.”

A similar exit is happening in Chicago due to regulation, according to a report by the Chicago Tribune. Starting July 1, the city’s authorities have required all bikes not in use to be locked to a stationary object like a bike rack, as part of a goal to avoid pavement congestion.

Unlike traditional bike rental services, Ofo along with other Chinese bike-sharing providers operate a “station-free” solution where users do not have to pick up and drop off the bikes at designated locations.