SINGAPORE: Chinese bike-sharing company ofo is set to have its operating licence cancelled, after it missed an extended deadline to remove its bicycles from public spaces.
The Land Transport Authority (LTA) said in a statement on Wednesday (Apr 3) that it has issued ofo with a notice of intention to cancel its licence. Ofo has up to 14 days to make a written representations to the authority.
The original deadline for ofo to clear its bikes was pushed to Mar 28 from Mar 13 after ofo headquarters informed LTA that it was in "advanced stages of negotiations" to partner another party to resume operations and fulfil the conditions of its licence.
"Despite the deadline extension, ofo has not complied," the authority said.
In addition to not ensuring that its bicycles were parked within designated areas by using a QR-code system, ofo had also failed to reduce its bicycle fleet to the stipulated maximum size of 10,000 despite multiple warnings, LTA said then.
Last December, ofo's chief executive Dai Wei said the start-up backed by Alibaba Group was facing "immense" cash flow problems.
It was also reported that ofo owes at least two of its former logistic vendors around S$700,000 for their services.
At its peak, ofo had bike fleets in more than 20 countries, from France to Australia and the United States.