oBike users unlikely to get back deposits as firm undergoes liquidation
27 Jun 2018|1,117 views
It is unclear how many people have unreturned deposits - up to $49 - which they placed with oBike to rent its two-wheelers, although some 260 customers have lodged complaints with the consumer watchdog against oBike so far this year.
The Business Times reported that oBike chalked up a loss of more than $4 million last year (2017), and owes unpaid fees to various service providers, including an unnamed logistics firm and a public relations agency, Ruder Finn.
When asked about oBike's financials, a source close to the company referred ST to the as yet to be named liquidators. The source, which requested anonymity, would only say, "The local (Singapore) team will do the best to refund users but it will hugely depend on the liquidator."
Farallon Law Corporation's Managing Director Nicolas Tang said none of oBike's customers would be able to sue for the return of deposits during the liquidation process, when any legal action against oBike is not allowed under the Companies Act. "This is to prevent any further deterioration of oBike's financial position," Mr. Tang said.
However, this would be time consuming and long drawn, and "it is likely that their legal costs would be higher than their deposits", Mr. Tang added. News of oBike's liquidation came a day after it made an unexpected announcement on Monday (25th June) that it was ceasing operations in Singapore.
The reason it gave was that it foresaw difficulties in meeting upcoming Land Transport Authority licensing requirements.
The Consumers Association of Singapore (Case) said on Tuesday (26th June) most of the complaints it has received were lodged within the past two days, mainly about the non-return of deposits that were asked for months ago. Concerns have also been raised about the personal data collected by oBike, which previously claimed that it had one million users.
Tech lawyer Bryan Tan of Pinsent Masons MPillay said, "Under the Personal Data Protection Act, if a company has collected data and the purpose for which it is being used comes to an end, the firm is required to delete it. The officers of the company are also personally responsible for that compliance."
Chinese-owned oBike, which rolled out in Singapore in January last year (2017), had an office in Commonwealth Lane, and at least 20 staff. ST understands that no oBike employees have lodged any salary-related claims with the Ministry of Manpower.
It is unclear how many people have unreturned deposits - up to $49 - which they placed with oBike to rent its two-wheelers, although some 260 customers have lodged complaints with the consumer watchdog against oBike so far this year.
The Business Times reported that oBike chalked up a loss of more than $4 million last year (2017), and owes unpaid fees to various service providers, including an unnamed logistics firm and a public relations agency, Ruder Finn.
When asked about oBike's financials, a source close to the company referred ST to the as yet to be named liquidators. The source, which requested anonymity, would only say, "The local (Singapore) team will do the best to refund users but it will hugely depend on the liquidator."
Farallon Law Corporation's Managing Director Nicolas Tang said none of oBike's customers would be able to sue for the return of deposits during the liquidation process, when any legal action against oBike is not allowed under the Companies Act. "This is to prevent any further deterioration of oBike's financial position," Mr. Tang said.
Concerns have also been raised about the personal data collected by oBike, which had one million users
However, this would be time consuming and long drawn, and "it is likely that their legal costs would be higher than their deposits", Mr. Tang added. News of oBike's liquidation came a day after it made an unexpected announcement on Monday (25th June) that it was ceasing operations in Singapore.
The reason it gave was that it foresaw difficulties in meeting upcoming Land Transport Authority licensing requirements.
The Consumers Association of Singapore (Case) said on Tuesday (26th June) most of the complaints it has received were lodged within the past two days, mainly about the non-return of deposits that were asked for months ago. Concerns have also been raised about the personal data collected by oBike, which previously claimed that it had one million users.
Tech lawyer Bryan Tan of Pinsent Masons MPillay said, "Under the Personal Data Protection Act, if a company has collected data and the purpose for which it is being used comes to an end, the firm is required to delete it. The officers of the company are also personally responsible for that compliance."
Chinese-owned oBike, which rolled out in Singapore in January last year (2017), had an office in Commonwealth Lane, and at least 20 staff. ST understands that no oBike employees have lodged any salary-related claims with the Ministry of Manpower.
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