Cycle hire firm on the move after 10pc theft rate

A cycle hire firm has pulled out of Manchester after 10 per cent of its bikes were taken out of use in July.

Mobike announced it had ended its service in the city, the first time it had taken such action, after suffering an increase in bicycle losses during the summer, with some burnt and thrown into canals.

The Chinese company warned last month it would have to take the decision unless the situation improved. It insisted it “can’t keep putting bikes in which disappear”.

The firm expects to have removed its remaining bicycles from the city by the end of this week.

Refunds are being processed to users, who are advised to check their bank statements.

More than 180,000 miles were cycled during 250,000 trips since the scheme launched in Manchester last summer. Mobike also operates in London, Newcastle, Oxford and Cambridge as well as in some major cities across Europe.

Bicycles are picked up and left without the use of docking stations such as those used by Transport for London’s so-called Boris Bike scheme. Users download an app which employs GPS technology to show where the nearest available bicycle can be found. They then scan a QR code to release a lock.

Jan Van der Ven, Mobike’s UK general manager, said: “As a private company, we have a duty to ensure our revenues cover our costs since unlike some operators we do not use taxpayer money to help balance our books. Unfortunately, the circumstances in Manchester have not made this possible.”