Grab is shutting down GrabCycle and replacing it with its new e-scooter app

Goodbye, GrabCycle. / Photo credit: Grab

Earlier today, Grab announced that it’s piloting its new e-scooter service called GrabWheels at the National University of Singapore’s (NUS) Kent Ridge campus.

It wasn’t clear if GrabWheels would fall under the ambit of GrabCycle, the bike- and scooter-sharing aggregator platform that Grab launched in beta in March.

Grab has confirmed to Tech in Asia today that GrabCycle will shut down on December 21, and GrabWheels is intended as its replacement.

GrabCycle – which was an incubation project of Grab’s innovation arm, Grab Ventures – initially launched with four third-party partners on its platform. Two of those – Singaporean bike-sharing startups oBike and GBikes – have since closed down. OBike was by far the biggest GrabCycle partner in terms of the number of bicycles in its fleet, and its exit from the marketplace led Grab to suspend new user sign-ups.

The other GrabCycle partners were Anywheel and e-scooter app Popscoot. Last month, Anywheel successfully obtained a license to operate a fleet of 1,000 bikes under the Singapore Land Transport Authority’s new regulatory framework. GrabCycle itself was also granted a license to run a 1,000-bike fleet.

See: Bike-sharing may struggle to survive amid toughening regulation

However, following the downfall of oBike and GBikes, Grab now appears to have decided that the third-party partnering model may be too much of a liability.

“The new app aims to provide active and green mobility options to all users, and will replace GrabCycle Beta and continue to address users’ short distance travelling needs in Singapore,” Chris Yeo, head of Grab Ventures, told Tech in Asia in a statement.

“What we have learned is that in order to provide a high level of safety and quality standards to both our users and the public, we need full control of the platform, product, and logistics,” he added. “We have chosen to focus on a shared e-scooter service first as the device is more user-friendly and convenient for female riders. It is also more suitable for Singapore due to our humid weather and limited land space.”

Yeo said that Grab will roll out GrabWheels Beta beyond NUS to more locations island-wide from late December onwards. GrabCycle users will be encouraged to download the GrabWheels app once it is available to the public, and will get their first five rides with the new service free.

A Grab spokesperson told Tech in Asia that Anywheel and Popscoot were informed of GrabCycle’s shutdown. “We appreciate Popscoot and Anywheel’s understanding of our plans as Grab looks to provide more active and green transport options to our users,” they said.