Bike sharing attracts investors despite abuse and stiff competition for users

(Aug 21): Sean Tay now understands what it is like to be disrupted out of your business. His family runs 10 bicycle rental kiosks here — under the banner of Cycle Max — and has watched demand take a hit after bike-sharing companies Mobike, ofo and oBike launched services across the island state. “We are sitting ducks if we don’t do something,” says 25-year-old Tay.

Earlier this month, the Tays rolled out a similar bicycle-sharing service with the help of Catalist-listed HDB repairs and maintenance company ISOTeam. Called SG Bike, the service is starting with 300 bicycles in Bukit Panjang on Aug 24, followed by 200 in Yishun and 500 in Sembawang. It is aiming for a user base of 50,000 by mid-2018. SG Bike has a paid-up capital of $1 million, with ISOTeam holding a 51% stake. Tay has a 27% stake, while his father Andy Tay owns 22%.

The Tays met ISOTeam while competing for a Land Transport Authority (LTA) shared-bike tender last year. The project was axed when Chinese bike-sharing companies entered the market. ISOTeam’s CEO Anthony Koh says he saw an opportunity to leverage his company’s connection with town councils and local authorities to deploy a system suitable for Singapore. Also, ISOTeam has experience building park connectors and bicycle lanes. The bikes were designed by the Tays.

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