In less than half a year since bike-sharing made its debut in Singapore, some bike-rental kiosks and companies have taken a hit due to its immense popularity, with one reporting a drop in revenue of around 20 to 30 per cent.

While things are not so dire yet, these businesses are not resting on their laurels either.

One company, for example, is bringing in more basic bicycle models and lowering rental prices to lure customers back. Another is touting package deals and discounts, while others bank on their service standards.

There are now three private players making a stake in the bike-sharing market here: Chinese firms Mobike and ofo, and Singapore operator oBike.

Their bicycles are placed around the island at designated spots, ready for riders to pay and use with the help of mobile applications on smartphones. Depending on the firm, there is a deposit ranging from $19 to $49, but that aside, a 15-minute ride can cost as low as 50 cents, and rates go higher with the duration of the ride. There are frequent promotions of free rides as well.

On competing at price points, the bike-rental companies said that it is “impossible” to match the low rates that bike-sharing companies offer.

CoastLine Leisure’s general manager Adrian Koh, 35, said that it has already seen a 20- to 30-per-cent drop in revenue. The company is knocking off rental prices in response to competition from bike-sharing — such as offering a three-hour rental at S$10 — but “there is only so low we can go for discounts”.

Mr Ethan Tan, owner of Aire MTB, which rents out mountain bicycles at Chestnut Nature Park near Bukit Panjang, said that business has seen “a slight dip” with bike-sharing operators in the scene now, but he did not give more details.

The 30-year-old told TODAY that he is looking to bring in between 300 and 500 basic models of mountain bikes, which will have just front suspension, compared with the existing fleet of bikes that have both front and back suspension.

This basic range would be sufficient for riders who want to use them in the mountain-biking trail in the park, he said.

Another firm, Lifestyle Recreation, which has been in the business for around 10 years and has outlets in public housing estates and parks, offers a loyalty and membership programme. Those who sign up as members will enjoy lower rental prices.

The bike-rental companies who spoke to TODAY unanimously pointed to the quality of their bicycles as the key factor that sets them apart from their bike-sharing competitors.

Mr Koh from CoastLine Leisure emphasises this point to customers. “The (bike-sharing) bicycles, they have no gear, and their tires have no inner tube,” he said, adding that these features often make for a better ride.

He also said that his company takes pride in offering “consistent maintenance” for their bikes, and for their quality parts.

Mr Tan from Aire MTB has seen some customers who, lured by lower rates, ride a bicycle from a bike-sharing operator into the mountain-biking trail of Chestnut Nature Park. “Those bikes are not made for the terrain, and they don’t come with safety gear. I worry for (the riders’) safety,” he said.

On Tuesday, bike-sharing firm ofo announced that it would be bringing in 500 new bicycles into Singapore within a month, with the target to deploy more than 1,000 bicycles across 28 public housing estates by the end of the year.

Earlier this month, oBike said that it would be adding 1,000 new and lighter bicycles islandwide. The bicycles are 5kg lighter with a slimmer frame, and have deeper baskets to hold bulkier or more items.

Source:
courtesy of TODAY

by ALFRED CHUA

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