oBike Deposits Allegedly Used to Buy New Bicycles & Fund Operations

Lest you’re unaware, the oBike saga has been ongoing since like 10,000 BC, and while sabre-tooth tigers and mammoths have ceased to exist one thing has persisted:

The fact that nobody’s getting their deposits back. Yet.

Indeed, angry Singaporeans have taken to stomping the roads of Orchard Road to vent their anger, and curse the winds for not getting their life savings of $49 back.

But why is it exactly that oBike’s, for lack of a better phrase, flying aeroplane on them?

Well, ladies and gentlemen… it seems that we have…

The answer.

Purchase of bikes

According to the Consumers Association of Singapore (CASE), whom received no less than 1,044 complaints from customers about not getting their oBike deposits back, oBike has been doing something with consumers’ deposits that’s not just “unethical”, but generally “unacceptable”.

Yes, prep yourselves, ladies and gentlemen, for your deposits…

Have been used to purchase bikes and fund oBike’s operations.

“Since the announcement that oBike would be ceasing operations, CASE has engaged oBike together with the Land Transport Authority (LTA). We were informed by oBike that consumers’ deposits have been used to purchase the bicycles and fund their operations,” CASE said in a statement.

That’s right, folks. Your deposits have, in a sense, been acting as the fuel behind oBike’s operations.

And naturally, it’s pretty darn implorable.

“CASE has communicated clearly to oBike that this practice is unethical and unacceptable, as the refundable deposit acts as surety for consumers to be responsible when using the bicycle-sharing service, and should not be used for other means.”

Hard-pressed to provide refunds

Incidentally, CASE said what we’ve probably all been thinking.

Using these deposits to purchase bicycles and fund its operations, according to them, would mean that oBike’s hard-pressed to refund consumers without new sources of funding.

“The deposit was never intended to be used as prepayment for future services,” CASE said. “As such, the deposit ought to have been placed in a separate account to allow oBike to refund consumers when required. The deposit should not be used to purchase assets and/or fund other operating expenses.

Oh no, does that mean we will NEVER get our refunds back? 

OH GREAT HEAVENS OF CASE, PLEASE HELP US.

As if in answer to my hidden plea (alongside billions of others, and maybe a couple of Australians and Malaysians), CASE clarified the situation.

“We put forth our position to oBike that they should honour their contractual obligations to consumers.”

A little backstory

Last Monday (25 June), oBike made a surprising move by announcing that it will wind up its operations in Singapore. But while that was sad and shit, what was sadder for the average Singaporean was the fact that they can’t seem to get their refunds back.

As such, hundreds of worried customers have protested (including complaints with CASE) and sought to retrieve their deposits, that add up to a whopping US$4.6 million ($6.3 million) in total.

CASE was quick to warn consumers that there’s always such a risk, however, when you make prepayments. As such, consumers should always look to minimise prepayments, or scour for alternative services that don’t require such deposits.

Meanwhile, we will make sure to get the latest updates, and inform you guys if geezus prist, some miracle grants the restoration of all oBike deposits.

So stay tuned for our good news.

So if you’re still looking forward to the $19 or $49 to buy milk powder for your babies, then I’ll suggest you to give up on that hope.

Now you know what Singaporeans are talking about today; do check back tomorrow for another piece of news of the day!