Wheels may come off for bicycle rental firms in Singapore

A bicycle-sharing company from China has provoked the ire of its Singapore counterparts, which are crying foul. Ofo, headquartered in Beijing, is conducting business at some public parks without having to pay rent for using the public space. Last week, a Straits Times check found ofo had parked at least 40 of its yellow bikes illegally at motorcycle parking spaces in Pasir Ris Park.

Its charge of 50 cents a trip is a cutthroat price that makes Singapore bike rental businesses see red, as they typically charge about $7 to $8 for an hour of use. "It's unfair because they are using public facilities for profit and they don't have to pay rent," said Mr. Adrian Koh, Manager of Coastline Leisure, which operates in Pasir Ris Park and East Coast Park.

Businesses like Mr. Koh's have to win a public tender to operate in public parks. They can sell drinks and snacks and rent out bikes from small sheds. Mr. Koh declined to disclose the monthly rent Coastline pays the National Parks Board (NParks) but said his business operates under 'very heavy costs'.

Coastline rents out bikes from $7 an hour. It says business at Pasir Ris Park has gone down by 30 to 50 percent since bike-share companies like ofo appeared. Ofo's presence and the disquiet it has created is akin to how Uber disrupted the taxi business, causing cabbies' earnings to drop. The newcomer also operates in other areas such as West Coast Park. NParks told The Straits Times it is aware only that ofo's bicycles are parked at West Coast Park. It did not say whether it would take action.

When asked why its bikes were parked illegally, ofo's spokesman said they were placed there after being unloaded and would be moved to public bicycle racks in the park 'as soon as possible'. On Friday night, the bikes were no longer parked in the motorcycle spaces.

Ofo's low fee was welcomed by Singaporeans interviewed. Auditor and Pasir Ris resident Willy Lim, 30, said, "It's so cheap and I can use it for as long as I want. Opting for it is a no-brainer." Renting an ofo bike is also convenient as users do not have to return the machines at fixed stations - a standard feature of bike-share schemes worldwide. They unlock the bikes with their smartphones and can return them at any place where bicycles can be parked. This novel approach has been adopted by local firm Obike, which began operating last month. Its bikes are found mostly at MRT stations.