Council’s legal advice says oBike could be operating illegally without development application

OBIKE is facing a new hurdle with Waverley Council considering legal advice which suggests the bike sharing company could be operating illegally.

An 'oBike' outside a shop in Surry Hills Photo: Jane Dempster/The Australian

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A CRACKDOWN on bike sharing companies is looming with Waverley Council looking at new impounding fees for rogue bicycles among other actions.

Council planners also sifted through a legal document last week, received by its neighbouring council

Pile of bikes at Waverley Park. Picture: Jack Vassallo

Randwick saying the new services may need a development application before depositing bikes throughout the local government area.

“The oBike system permits members of the public to hire, and for short periods, reserve the bicycles,” lawyer Ian Hemmings SC wrote to Randwick Council.

“When the bicycles are not under hire, nor reserved, they are under oBike’s control (via the app) and waiting to be hired.

“That is a use of land that amounts to development for the purposes of the Environmental Planning and Assessment Act.”

Dockless bikes left abandoned in a heritage shelter at Bronte beach.

Mr Hemmings wrote that oBike — one of several bike sharing operators in the area alongside Reddy Go and ofo — had not obtained development consent from council.

“As a result, unless some consent, approval or authorisation is obtained oBike is using land within the Randwick local government area unlawfully, and in breach of the Environmental Planning And Assessment Act.”

Mr Hemmings said the company could be subject of criminal sanctions.

Bikes dumped at Rushcutters Bay. Photo: Lois Brown

Bikes dumped at Rushcutters Bay. Photo: Lois Brown.

Head of oBike Australia Lim Chee Ping said: “This is new to us but we are reaching out to the council to have open dialogues on this matter.”

Stakeholders met on Monday, including the Southern Sydney Region of Councils, council staff, Transport for NSW and all of the current bike operators.

They will write a briefing paper to be delivered at conference of mayors at the end of the months.

Waverley Mayor John Wakefield said council was looking at impounding bikes for $70 each and that Randwick Council’s legal advice was untested.

“We’re fairly confident that the Impounding Act will be our tool,” he said.