Singapore's Bike Rental Shops Face Challenges as Bike-Sharing Grows

Before the pandemic, many people waited in line to rent bikes from Mr. Joe Chua's shop.

They waited for bikes to be returned, not just to rent them.

The shop owner said there were no bikes in the shop, and people waited for them to be returned.

Now, the lines are gone, and about 200 bikes sit unused in the shop.

Bike-sharing services have grown, and traditional rental shops are struggling to compete.

Many customers choose bike-sharing because it is cheaper and more convenient.

Renting a bike from a shop costs around $10 per hour, while bike-sharing costs $2 to $2.50 per hour.

The shop owner said business has been poor for the past three years due to bike-sharing.

He earns very little on most weekends, and has lost around $250,000.

Bike rental shop owners said demand decreased in 2017 and 2018 when bike-sharing services started.

However, business improved during the pandemic, but now it's struggling again.

Some shops have sold bikes, reduced staff, or focused on guided tours to stay in business.

Mr. Chua has sold some bikes and now runs the shop alone.

He believes bike-sharing is the main reason for his decline in business.

Many customers wait for bike-sharing bikes to arrive, and only a few rent from his shop.

An expert said bike rental shops rely on special conditions to survive and mainly serve tourists.

The expert said the traditional model was disrupted by the invention of dockless bike-sharing.

Dockless bike-sharing showed that costs could be lowered, and demand could be increased.

Traditional shops struggle due to their high costs and inability to match dockless rental prices.

Shops can try to capture a higher-end market, but can't compete with dockless rentals.

Mr. Chua has shifted to higher-quality bikes and relies on large group events.

He said they can't do much except change their business approach.

Bike rental shops in popular cycling areas are also seeing a decline in demand.

Most customers now rent tandem bicycles or quadricycles.

At East Coast Park, most cyclists use shared bicycles.

A marketing executive tried Helloride and prefers it due to its convenience and price.

She acknowledged that bike quality can be inconsistent, but it's easy to get a new one.

Some cyclists still prefer rental bikes due to nostalgia and better service.

Anywheel has expanded its fleet, particularly in residential areas and parks.

The CEO attributed growth to more people cycling for commuting and leisure.

HelloRide has also seen more riders using its bicycles for recreational trips.

Another rental shop, The Bicycle Hut, has seen a 35% decline in customers.

The shop derives most of its revenue from bicycle rentals and is struggling to stay in business.

The owner is unsure if they can continue and is considering shutting down.

He sees the rise of bike-sharing as a challenge to adapt to, rather than resist.

Like Mr. Chua, he has shifted to guided tours and corporate events.

An expert said operators face financial volatility and should transition to subscription models.

Dualcircles operates by appointment and specializes in premium bicycles.

The owner said the rise of bike-sharing has made it harder to attract customers.

Demand for entry-level bicycles has dropped, and most customers now seek premium road bikes.

The owner has expanded his fleet of road bikes and focuses on providing a personal experience.

Bicycle rental shop owners and experts said these shops are unlikely to disappear if they modernize.

An expert suggested that rental shops look to areas where bike-sharing is not established.

He also pointed to lifestyle-focused subscription models that are gaining traction overseas.

These models create a community and provide agency over the device used.

Safety is another area where rental shops can differentiate themselves.

An expert warned that the industry faces decline if operators don't innovate and pivot away from walk-in models.

To survive, the sector must innovate and move away from purely transactional models.

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