In recent years, bike-sharing service has become more and more popular globally and as an emerging service, its operation, charges and service quality still have much room for improvement. Recently, the Consumer Council has received quite a number of complaints about bike-sharing service, the areas of complaint mainly covered prepaid top-up value and deposit payment, such as levying charges despite the malfunction of the locking device that rendered the bike unserviceable; no refund for prepaid top-up value after the trader closed down; and inadequate customer service, etc. The Council is to stress that operators should endeavor to rectify various problems arising from their rental services to prevent consumers from suffering any monetary loss and losing their confidence in this emerging new service.
In September 2018, the Transport Department issued a “Code of Practice for Automated Dockless Bicycle Rental Services” that aimed at promoting sustainable development of bike-sharing services. The Council urges service providers to follow the standard practice stipulated in the Code and to set up hotlines to effectively handle enquiries and complaints so as to provide timely response and assistance to consumers. Furthermore, service providers should ensure that their mobile apps are designed to give clear user instructions, fee payment options and the terms of service in details, as well as to regularly update and review the reliability of the mobile apps to prevent charging consumers erroneously.
For the issue on refusal to refund top-up value to consumers after the close down of the service provider, the Council deems such practice unreasonable and reiterates that the purpose of top-up value is only to cover charges arising from the actual usage by consumers, and therefore cannot be regarded as the company’s asset. Traders, upon closing down their business, are urged to refund the entire remaining balance of the top-up value to their customers to protect their consumer right.
Case 1: Charges continued despite failing to unlock the bike due to faulty mobile app
The complainant followed the instructions of the mobile app of Company A to input the required information but the bike could not be unlocked and the complainant swiftly ceased the mobile app operation in an attempt to terminate the service. However, as indicated on the mobile app, the bike had already been activated for service and rental fee had started to be incurred. The complainant tried to contact Company A’s customer service hotline but to no avail and the complainant could only notify the company of such problem via instant message on the mobile app. However, even after a week the company didn’t respond. As it turned out, the complainant’s account had been deducted a cumulative sum of $1,800. Utterly dissatisfied, the complainant approached the Council to seek immediate refund of the unreasonable charge.
In response to the Council’s enquiry, Company A confirmed that refund to the complainant had been arranged and the case was eventually resolved.
Case 2: Prepaid top-up value and deposit are non-refundable, even if the service was not used
The complainant tried for the first time to download the mobile app of Company B on his mobile at the dock where the bikes were parked. After registering in accordance with the instruction and scanning the QR code on one of the bikes, the complainant found it remained locked and soon realised that the bike actually belonged to another company. Nevertheless, the complainant received a short message on his mobile, informing him that $150 from his credit card account had been credited to Company B. The complainant further checked the balance of his account on the mobile app of Company B to confirm that there was $150 top-up value and a free $10 gift voucher in his account. The complainant was perplexed and called the company but was told that though there was no record of his using the bike service, the company would not refund any top-up value and advised the complainant to retain the value for future deduction. The complainant thus contacted the Council for assistance.
Company B explained that consumers must either pay a deposit or choose a deposit-free top-up plan prior to using the service. The terms of the rental service also stipulated that top-up value was non-refundable. Since the complainant had chosen the option for $150 prepaid top-up value in lieu of deposit, the sum was hence drawn from his credit card and it had nothing to do with the erroneous scanning of a non-Company B’s bike by the complainant. Company B contacted the complainant directly upon the conciliation of the Council and exercised discretion to resolve the dispute in view of the complainant’s first time use of the bike-sharing service. The complainant had since then ceased approaching the Council again for further assistance.
Case 3: No refund of remaining stored value upon company closure
The complainant registered with Company C for bike-sharing service through mobile app and paid $299 as deposit and $100 as top-up value through credit card payment. When complainant wished to use the service, he had failed at least five attempts to activate the bikes of Company C. Being disappointed with the rental service, the complainant emailed the company to request for refund of all his money and termination of his account. However, there was no response from the company after 20 days and the complainant thus approached the Council for assistance.
During the course of follow-up by the Council, Company C announced the closure of its business. The company indicated that generally it would refund the deposits to the credit card accounts of the registered customers but the top-up value would be non-refundable as it was stipulated in the terms and conditions of the contract that the top-up value was the company’s asset. The Council advised the complainant to take note of his credit card statements and if he eventually failed to receive the refund of his deposit or wished to pursue the refund of the remaining top-up value, he should fill out a creditor’s debt registration form for the provisional liquidator to further pursue the matter.
Service providers are advised that:
- They should provide clear user instructions, charges details and terms of service, etc, in their mobile apps, as well as to regularly update the apps to ensure that the locations and usage of the bikes are accurately identified;
- They should check the bikes regularly to ensure that the bikes are in good order to ensure its safety for the users;
- Some service providers only leave emails and mobile instant messages for contacts. They are advised to deploy additional staff to enhance their customer service and respond to problems encountered by consumers in a timely manner;
- They should closely monitor the parking locations of their bikes and should take prompt action to rectify the situation if there are any nuisances or safety concerns caused by their bikes.
Consumers are advised that:
- Deposits and top-up value are prepayments in nature and to minimize the risk of loss they should not pay too much in one go simply for the sake of convenience or earning discounts;
- They should park the bikes at the designated docking areas and should carefully read the terms and conditions of the service contracts concerning improper usage or parking of the bikes;
- Retain information such as the account number, email address and registered phone number, etc, so that they can quickly provide the information to the service providers for follow-up when the mobile apps experience any problem;
- When the bike cannot be locked, unlocked or has any other problems, they should take photos of the bike on the spot, jot down the number of the bike and the related records of the bike service, and notify the service provider as soon as possible;
- Consumers have the responsibility to abide by the “Road Users’ Code” to ensure the safety of themselves and other road users.
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