Lessons Learnt from Abrupt Exit of oBike and New Requirements for Licensees for Similar Public-subscribed Transport Schemes
Ministry of TransportSpeakers
Summary
This question concerns the lessons learned from oBike’s abrupt exit and the protective measures LTA now requires for similar public-subscribed transport schemes. Mr Dennis Tan Lip Fong inquired about safeguards for consumer deposits, unpaid service providers, and the disposal of abandoned equipment. Minister S Iswaran explained that the Shared Mobility Enterprises Act now requires licensees to furnish performance bonds and maintain exit plans for device removal. LTA is also empowered to prohibit operators from collecting deposits and can use performance bonds to offset the impacts of sudden market exits. Finally, consumers and companies can seek redress through the Consumer Association of Singapore or the civil courts for outstanding claims.
Transcript
28 Mr Dennis Tan Lip Fong asked the Minister for Transport (a) what are the lessons learned from the abrupt exit of oBike from Singapore; and (b) what are the protective measures which LTA may now require of all operators of similar public-subscribed transport schemes in the interest of (i) consumers for loss of deposit payments (ii) local service providers for unpaid services rendered and (iii) public authorities for arranging disposal of abandoned equipment.
Mr S Iswaran: When dockless bicycle sharing services first entered Singapore, they offered Singaporeans another convenient travel option. At that time, LTA deliberately adopted a light touch regulatory approach towards this new innovative business model. Many users have used the services for their commuting needs. However, the proliferation of the services also led to indiscriminate parking and many stranded bicycles. To address these disamenities, we started licensing bicycle-sharing operators in 2018 under the Parking Places Act. That was when oBike made the commercial decision to close its operations.
In February 2020, the Shared Mobility Enterprises Act was passed to enhance the licensing regime for shared mobility devices. Under the regime, licensees are required to have plans to remove their devices in a timely manner should they exit the market. They are also required to furnish a performance bond to LTA to ensure compliance with their licence conditions, or be used to offset the impact of a sudden exit. Whilst all current licensees do not require deposits from consumers, the enhanced regulations also allow LTA to prohibit bicycle-sharing licensees from doing so should the need arise. This strengthened regulatory framework provides a foundation for sustainable and responsible device-sharing operations in Singapore.
In addition, companies and consumers with claims against any operator can seek redress through the civil courts. Consumers may also seek assistance from the Consumer Association of Singapore (CASE).