Two bike-sharing companies to ride out of the Australian market
They’ve turned up in trees, on bridges, on roofs and in rivers.
For the last few months, it seems everywhere you turn there’s a share bike lying discarded or unused and often broken.
You rarely see people riding them and finally, it seems, the companies are getting the message.
Two major share bike operators are set to exit the Australian market in the coming weeks.
Ofo is shutting down its Australian operations to focus on other markets.
The future of Reddy Go is also in doubt as it announces a company restructure, and offering all members two free bikes from their storage centre in Sydney.
Ibis World Senior Analyst Kim Doh tells Deborah Knight “the business model has had a lot of issues from the start”.
“The companies were unable to balance supply and demand.
“This then led to an abundance of bikes just piling up on the streets which then led to vandalism and just chaos.
“Because these companies were unable to overcome the first economics of just supply and demand, it just ultimately led to their downfall.”
Click PLAY below to hear the full interview