Ofo, the China-based bike share company that has only operated in Austin for about five weeks, is pulling out of the market as part of a widescale downgrading of its U.S. operations.
An Ofo spokesman did not say when the company planned to officially leave town.
According to media reports, Ofo is also shuttering its service in other U.S. cities and cutting its U.S. staff. The company has operated in more than 25 markets across the country.
Ofo’s departure comes just weeks after ride-hailing giant Uber launched its own dockless bike share program in Austin through its Jump Bikes branch. Jump Bikes has been expanding throughout the U.S. into markets such as Chicago and Washington D.C. Other large on-demand transportation companies such as Lyft have also been investing more into bike share services.
Everett Weiler, Ofo’s general manager in Texas, said in a written statement Thursday that the company has started to re-evaluate the markets it operates in.
“As a result, we are winding down operations in Austin and we thank the city for allowing us to introduce bikeshare to millions of people in Texas,” Weiler wrote.