SINGAPORE (Mar 9): Grab is making its first move to take over the bike-sharing market. It is due to launch GrabCycle Beta by mid-2018 as a digital platform that allows consumers to rent bicycles or scooters from oBike, GBikes, Anywheel and Popscoot.
The project is the first under GrabVentures, the ride-hailing operator’s innovation arm to test out new concepts.
Grab announced a partnership with oBike two months ago. The group is currently seeking other bike-sharing companies to join its GrabCycle platform. Notably, Alibaba-backed Ofo and Temasek-backed Mobike are currently not part of GrabCycle.
Grab also partnered supply chain services company YCH to manage the distribution of GrabCycle vehicles across the island. YCH says they will deploy an initial team of seven people.
GrabCycle will be a separate app from Grab’s main platform. It will work almost identical to the current bike-sharing mobile application. It allows users to use GrabPay credits to pay for rides. Errant riders who not park in designated zones will be penalised, according to the company.
Grab’s move into the bike-sharing space mimics other regional players such as Didi, which recently launched the service within its own app. According to GrabVentures head Reuben Lai, the data will be used to help the government to locate cycling paths and parking areas.
“We are experimenting various ways for consumers to pay. [It] can be [either] pay as you go, or subscription,” says Lai. Grab is still discussing with the bike and scooter companies on how fares will be shared between them.
oBike, which has over 14,000 bikes across Singapore, says it will continue to have its standalone app. It hopes the partnership with Grab will increase its reach in Singapore, and potentially serves as a stepping stone to enter other Southeast Asian market.
Grab plans to work with location partners such as malls and industrial zones to create more parking stations for the bikes. Currently, there are only dedicated GrabCycle parking stations in Sentosa.
Grab officials refuse to comment on the alleged deal that Grab is buying out Uber’s Southeast Asian operations.
