Chinese bike-sharing operator Ofo has breached multiple regulatory requirements set by the government and has to meet them all by 13 February to avoid suspension, stated the Land Transport Authority (LTA) on Tuesday (15 January).
It stated that Ofo has breached multiple regulatory requirements despite being given an ample preparation period for compliance.
LTA claims that despite multiple warnings and regulatory action taken against them, Ofo had not been able to reduce its deployed bicycle fleet to the stipulated maximum fleet size of 10,000, as well as managing to implement the QR-code parking system by 14 January.
LTA said, “We view these as serious breaches of critical requirements. Therefore Ofo must meet all regulatory requirements by 13 February 2019, failing which LTA intends to suspend Ofo’s licence.”
The authority had announced last November that it would take action against ofo for breaching the fleet-size quota, in which the company could have been fined up to $100,000 for its infringement of the Parking Place Act.
The firm, however, has been facing cash flow problems and millions of users have asked for their deposits back.
Dai Wei, Ofo chief executive, stated in December that the firm was battling “immense” cash flow problems and disbanding the firm has been considered as an option.
At least two of Ofo’s former logistic vendors have said the firm owes them around S$700,000 for their services in the country alone and the contracts of hundreds of Ofo Singapore employees were also terminated in November last year.
Employees said Ofo still owed them thousands of dollars in claims and they have lodged complaints with the Tripartite Alliance for Dispute Management.