oBike deposits were used to purchase more bicycles and fund operations: CASE

Since the bike-sharing firm announced last Monday that it’ll be shuttering its Singapore operations, users have been up in arms over the extreme difficulties in getting back the money they’ve put in to use oBike’s services. Thousands of users paid mandatory deposits ranging from $19 to $49 — all in the company’s bid to ensure “responsibility while using (their) service”.

$6.3million is the amount that oBike currently owes its former riders, with company chairman Shi Yi simply offering good intentions and promises instead of foreseeable solid plans to roll out the refunds. According to him, the company is trying to raise money from its shareholders to replace the money they owe to an estimated 100,000 former customers. The Land Transport Authority (LTA) directed disgruntled users to lodge their complaints to CASE— a non-governmental organization without legislative powers.

An update provided by CASE yesterday revealed even more disappointing details about the ordeal with oBike. According to the consumer watchdog body, our deposits have been used up by oBike to expand their bicycle fleet and fund their operations. In other words, the money we put into the service to pay for future bike rides was apparently used for other means.

Read more here.