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Money Australia's bike sharing industry is near collapse as 3 major companies shut

04:31  11 july  2018
04:31  11 july  2018 Source:   businessinsider.com.au

Ride-sharing giant Ola just recruited a former eBay CEO to run its Australian operations

  Ride-sharing giant Ola just recruited a former eBay CEO to run its Australian operations Six months after it began its rollout in Australia, Indian ride-sharing business Ola has recruited as its local managing director. Simon Smith, a former eBay Australia CEO, Sportsbet director, VP of Virtual Offices at Servcorp, and McKinsey consultant, comes aboard six months after Ola first launched in Perth.It's now in five capitals, including Sydney, Melbourne, Canberra and Brisbane, as well as the Gold Coast, with plans to launch in Adelaide soon and Darwin and Hobart “in the near future”.

Bike - sharing company Ofo has announced it is shutting down its Australian operations.The business will Similar from the Web. Australia ' s bike sharing industry is near collapse as 3 major switch to the Australia edition. China’ s third largest bike sharing company has reportedly run into financial

Most bike sharing businesses in Australia have withdrawn from the market over the past week, including oBike, ReddyGo and Ofo. Reddy Go, the Australian bike share company , told its members it is restructuring, offering two free bikes to those who didn’t want to take part in the yet to


  Australia's bike sharing industry is near collapse as 3 major companies shut © Provided by Business Insider Inc The scramble to establish a viable bike sharing business has all but ended in Australia, leaving behind broken and abandoned frames and a business model that didn't work.

Most bike sharing businesses in Australia have withdrawn from the market over the past week, including oBike, ReddyGo and Ofo.

They came up against local residents and councils in capital cities who didn't like that the bikes ended up in the local river, or up a tree, or mangled in a back street, or as part of an impromptu art installation.

In Victoria, the Environment Protection Authority Victoria gave oBike deadlines for removing the yellow rental bikes when they were dumped or damaged, and empowering the City of Melbourne to issue fines of up to $3,000 for each incident.

Ofo bike-sharing company to close in Australia

  Ofo bike-sharing company to close in Australia Scores of yellow bikes, often seen parked and dumped in obscure places across Sydney and Adelaide, will soon disappear. Bike-sharing company Ofo has announced it is shutting down its Australian operations.The business will wind down over the next 60 days, with bikes to slowly be removed from the streets and put into warehouses. © 9NEWS A study found that Australia has the lowest usage of share bikes in the world. Picture: 9NEWS The Chinese-founded company told 9news.com.au in a statement that it made a “strategic decision to focus on priority markets internationally”.

Bike - sharing company Ofo has announced it is shutting down its Australian operations. The business will wind down over the next 60 days, with bikes to slowly be removed from the streets and put into Australia ' s bike sharing industry is near collapse as 3 major companies shut .

Stories in Bike Sharing include: Australia ' s bike sharing industry is near collapse as 3 major companies shut | The number of bike - sharing programs Bike sharing schemes are incredibly popular -- here's why they will continue to grow globally. Sun Sheng Han, University of Melbourne.

oBike pulled out of Melbourne and on Friday its parent company in Singapore went into liquidation.

Reddy Go, the Australian bike share company, told its members it is restructuring, offering two free bikes to those who didn't want to take part in the yet to be announced new business.

And Ofo, a business founded in China, today announced the end of Australian operations.

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Bluegogo, China’ s third largest bike sharing company , reported to be in financial trouble. switch to the Australia edition. China’ s third largest bike sharing company has reportedly run into financial trouble, amid a wave of busts and consolidations in an industry that took the country by storm this year.

Mining in Australia is a significant primary industry and contributor to the Australian economy. In 1851, gold was found near Ophir, New South Wales. Weeks later, gold was found in the newly Australian gold rushes, in particular the Victorian Gold Rush, had a major lasting impact on Victoria

"Ofo has made a strategic decision to focus on priority markets internationally," a spokesperson said.

"ofo will therefore wind-down operations in Adelaide and Sydney during the next 60 days. As part of this process ofo will begin to remove bikes from cities and consolidate them to our warehouses.

"This decision does not come lightly, and ofo Australia will act responsibly in each market as it winds down operations, resolving any outstanding concerns before finalising operations."

While bike sharing services have proved popular in Europe and China, they have struggled in Australia due to local laws, vandalism, complaints about misplaced bikes, and data collection concerns.

Kim Do, a Senior Industry Analyst for IBISWorld, Kim Do, says bike sharing businesses have two main hurdles.

“The first is balancing supply and demand. An oversupply of bikes is a key reason why dockless bike sharing services are failing in Australia," she says.

Dockless bike sharing coming to Canberra despite struggles in Sydney and Melbourne

  Dockless bike sharing coming to Canberra despite struggles in Sydney and Melbourne They've been abandoned in riverbeds, left up trees and dumped in piles — now, dockless share bikes are coming to Canberra. The timing of the announcement is somewhat interesting as oBike last month withdrew from Melbourne after a raft of councils introduced tougher rules, with other companies following suit and a cloud hanging over the remainder.

9. Australia ’ s bike sharing industry is near collapse as 3 major companies shut . ReddyGo, oBike and Ofo have all announced they are shutting down operations in Australia , up against local residents and councils in capital cities who didn’t like that the bikes ended up in the local river, or up a

switch to the Australia edition. Three people have been arrested after an elevated section of a major north-south highway in the south-east of the US collapsed in a massive fire. The interstate is a major artery for traffic heading north and south through Atlanta.

"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."

Bike sharing companies have also failed to identify and implement ways to incentivise consumers to correctly park their bike. This led to the second issue for bike sharing services -- vandalism and dumping.

“As Australian government authorities began to crack down on dumping, imposing fines of up to $3000, Australia was no longer a viable market for these players,” she says.

The bike sharing business model, of obtaining revenue through data mining, advertising and interest on deposits, rather than the fee charges per ride, is an additional issue.

“A substantial amount of revenue for bike sharing companies stems from selling consumer data to other businesses," she says.

"This includes details such as rider profiles and locations frequented. This data is then used by other organisations to assist with urban planning, marketing campaigns, or to assist with identifying locations with high consumer traffic.

"However, a business model that relies on data mining poses an issue, as consumers have become increasingly cautious of data breaches."

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