Chinese-owned Ofo has just announced it will be withdrawing from Australia within two months,following hot on the heels of several other big-name competitors.
In a statement released to news.com.au today,the company confirmed it now had made a "strategic decision to focus on priority markets internationally".
"Ofo will therefore wind-down operations in Adelaide and Sydney during the next 60 days,"the statement reads."As part of this process,Ofo will begin to remove bikes from cities and consolidate them to our warehouses.
It's parent company has also gone into liquidation.
公司也進入了清算階段。
And this week,Australian-owned Reddy Go also revealed it would likely be departing from Sydney,with The Australian revealing the company was undergoing a restructure and that as a result,customers could pick up two free bikes from its storage facility in Alexandria in the inner city.
Industry information research company,IBISWorld,said while bike share companies are popular in Europe and China,they have failed in Australia thanks to local laws,vandalism,complaints about misplaced bikes,and data collection concerns.
"The first is balancing supply and demand. An oversupply of bikes is a key reason why dockless bike sharing services are failing in Australia,"Ms Do said."An abundance of bike sharing start-ups have entered the Australian market over the past year,all fighting for market share.However,the number of users has failed to grow in line with supply,leading to a glut of share bikes.”
And according to Ms Do,the companies hadn't been able to convince customers to park their bikes properly after use,leading to a deluge of vandalism and dumping.