Tuesday, July 03, 2018

Financial viability for shared bike operations

I held the view earlier that bike sharing will not be viable in Singapore.

I wish to explain my reason.

Singapore has a good network of trains and buses that brings people close to their homes. We also have an integrated fare system. The passenger can take a bus, change to a train, and another bus - and pay an integrated fare.

Most people will prefer to take a feeder bus, rather than ride a bicycle. They do not have to pay extra for the bus ride. If they take a shared bike, they have to pay $0.50 or whatever is the actual fare.

The fare may be free during the promotion period, but after the promotion, the operator needs to collect revenue to pay the expenses.

For the shared bike to be viable, it has to be provided by the Land Transport Authority and be integrated into the public fare. Althernative, the operators should get some financing from the government.

OBike has decided that they cannot continue to operate the shared bike. They has ceased operation rather abruptly. I suspect that the other operators will face the same challenge.

It is useful to have shared bikes but the financial viability of the operations should be addressed.

Tan Kin Lian




2 comments:

Yujuan said...

The colourful shared bikes parked around bus stops and MRT stations are an eye sore for our small island. Parks and Recreations dun allow flower pots to obstruct public walkways, so why Govt tolerate these bikes clogging them, double standards apply, IT bike Companies more big shot.

Anonymous said...

Hi Mr Tan.. i find the bike sharing a great convenience for running errands nearby during tight timing. Personally i won't use them as alternative to bus or train which distance are longer in local weather and traffic condition. Furthermore bus/mrt routes are fixed..bike offer mobility

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