Security Deposit or Performance Bond by Shared Bicycle Operators to Ensure Protection of Deposits or Prepayments Made
Ministry of TransportSpeakers
Summary
This question concerns whether the Land Transport Authority (LTA) will require shared bicycle operators (BSOs) to provide security deposits or performance bonds to protect consumer prepayments. Minister for Transport Khaw Boon Wan stated that LTA will study this necessity when the licensing regime begins in October, particularly for operators requiring deposits. Currently, none of the seven license applicants require user deposits, as LTA avoids over-regulation to facilitate industry growth and ensure services remain affordable. The licensing framework focuses on minimizing public disamenities from indiscriminate parking by requiring BSOs to submit sustainable management plans. Moving forward, LTA will monitor the regime and collaborate with organizations like the Consumers Association of Singapore to balance industry viability with public interests.
Transcript
8 Mr Lim Biow Chuan asked the Minister for Transport whether LTA will require shared bicycle operators to place a security deposit or performance bond to ensure that deposits or any pre-payment made by bicycle hirers or consumers are protected.
Mr Khaw Boon Wan: The Land Transport Authority (LTA) will study the need for bicycle-sharing operators (BSOs) to place a security deposit or performance bond if there are BSOs which require user deposits when the licensing regime is implemented from October this year. Currently, seven BSOs have applied for licences. None of them require user deposits. A number of them are existing BSOs who, even under the light touch approach adopted today, do not require user deposits.
To facilitate the growth of this nascent industry and ensure that bicycle sharing services remain affordable, LTA has refrained from over-regulating BSOs as this can increase their compliance costs, which could, in turn, be passed on to users. The licensing regime is primarily targeted at minimising disamenities to the public caused by the indiscriminate parking of shared bicycles. To be licensed, BSOs must put forward a responsible and sustainable bicycle management plan to operate in our local context.
Going forward, LTA will monitor and strengthen the licensing regime as necessary, as well as work with relevant organisations, such as the Personal Data Protection Commission, the Consumers Association of Singapore, National Parks Board and the Town Councils on public education and outreach, so as to strike the right balance between the viability of the industry and the interests of users and the general public.