The Land Transport Authority (LTA) has revised the pricing for bike-sharing licensing fees in July.
It has halved the fees to $15 per bike for full licenses and $6 per bike for sandbox licenses.
LTA said that this move “will help reduce compliance costs for operators and support bicycle-sharing as an option for active mobility.”
Following this price revision, LTA has refunded over $570,000 to bike-sharing firms in Singapore.
Refund Ranges From $6,000 to $375,000
Chinese firm Mobike may have quit the bike-sharing market in Singapore, but it received the biggest refund of $375,000.
It used the money to operate its fleet of 25,000 bicycles. This meant that SG Bike, which took over Mobike’s license, paid less for the US$1.9 million (S$2.54 million) takeover deal.
Following the acquisition, it will absorb Mobike’s fleet, capped at 25,000. This increased fleet size makes SG Bike the largest bike-sharing firm in Singapore.
Meanwhile, Anywheel received a refund of $150,000 for the licence to operate 10,000 bicycles.
Newest player Moov Mobility is believed to receive a refund of about $6,000, as it was operating a fleet of 1,000 bicycles on a sandbox licence before the reduced fees kicked in.
According to The Straits Times, bike-sharing firms plan to reinvest these savings in their operations, which could result in cheaper rides.
Instead of the usual bike rental fee of S$1 for a 30-minute ride, they now cost about $0.50.
However, these lowered fees might result in an unsustainable business model for the industry in the long run.
The bike-sharing industry in Singapore has already seen a sharp decline over the years. Issues such as indiscriminate parking by users and abuse of the bicycles has unfortunately put the brakes on these companies’ growth.
So do you think lower fees will help to revive the dying bike-sharing industry in any way? Share with us your thoughts in the comments section below!
Featured Image Credit: Cyclelogy
