(Yicai Global) May 17 -- Beijing's transit authority slapped Hellobike with an administrative penalty yesterday over its illegal distribution of its shared bikes and gave it 10 days to withdraw all illegally placed ones in the city.
It also fined the firm CNY50,000 (USD7,250), the Beijing News reported today.
The agency also restricted Hellobike's placement of shared bikes in six city districts.
Hellobike merged with Youon Bike in December 2017, with Hellobike fully taking over the business of the former, which had 19,000 bikes registered and approved in Beijing. Hellobike, which is run by Shanghai Junzheng Network Technology, was allowed to substitute that number of its own brand to replace the defunct Youon bikes, per the city's rules.
However, it had to negotiate with authorities to pilot its service in the city's suburban districts and sign letters of commitment with their authorities before putting out shared bikes in these places.
Hellobike had over 50,000 velos-for-hire scattered around the Chinese capital as of April 8, however, data show. It has also been guilty of similar infractions on several occasions in Shenzhen and Shanghai.
Editor: Ben Armour