SG Bike set to acquire Mobike’s Singapore license

Singapore’s SG Bike has agreed to take over Mobike’s bike-sharing operator’s license in the city-state, pending regulatory approval.

Mobike will transfer its operator’s license, as well as its bicycles and users, to SG Bike, should the city-state’s Land Transport Authority (LTA) approve a request submitted by the two companies.

Photo credit: SG Bike

SG Bike – 51% of which is owned by urban planning and civil engineering company ISOTeam – said the deal will make it the single largest bike-sharing provider in Singapore.

ISOTeam said that it will pay Mobike US$1.85 million to take over its license – which will give SG Bike the right to operate an additional 25,000 bicycles – and security deposit, as well as 18,000 Mobike cycles already deployed on Singapore’s street, plus another 7,000 stored in warehouses.

If the LTA gives it the green light, the agreement will allow users of the SG Bike app to unlock and ride both SG Bike- and Mobike-branded bicycles.

Mobike’s existing users in the city-state will have the opportunity to transfer any credit or ride passes in their accounts to SG Bike.

Those who made cash deposits with Mobike will be able to request a refund, according to SG Bike. Mobike user deposits still in place following the completion of the deal will be converted into SG Bike credits, with users given a chance to opt-out and demand a cash refund from SG Bike.

See: With Mobike leaving, Singapore’s bike-sharing boom looks over. Here’s what’s next

Mobike launched its bike-sharing service in Singapore in March 2017. Initially, it faced fierce competition from fellow Chinese player Ofo and Singapore-based oBike. However, oBike ceased operations in June 2018 amid apparent cash flow problems, and its founders are currently the subject of a police investigation into alleged misappropriation of users’ deposits. Facing its own cash crunch, Ofo had its Singapore operator’s license suspended, and subsequently canceled, by the LTA earlier this year.

Mobike’s US$3.4 billion buyout by Meituan Dianping in April 2018 was seen as allaying similar cash flow fears for its bike-sharing business. But within a year, the company revealed it would be scaling back its operations outside of China, and applied to surrender its Singapore license while exploring options for transferring parts of its operations to another existing licensee.