(Yicai Global) Oct. 23 -- Electric bike-sharer Deer Bike Beijing Technologies Co., or Xiaolu Danche, began recalling its bicycles on Oct. 21 and will suspend operations today, making it the first company in the Chinese capital to close shop after the city introduced a new policy on e-bikes, the company said online.

Deer Bike users can apply for their initial deposits to be returned and they will be refunded within seven working days, Beijing News reported.

Beijing Municipal Commission of Transport brought in the new rules, requiring e-bikes to be equipped with a special license and causing a number of operators to take their bikes off the streets. The commission said in September that it had no plans to developer e-bike sharing.

Executives at the Beijing Ministry of Transport said most leased e-bikes fail to meet safety standards and many riders have not undergone professional traffic safety education or training. Their weight and speed also lead to greater damage and loss in traffic accidents, they added, saying supporting facilities, such as charging, at lease locations are far from perfect, and outdoor charging and parking will affect the batteries and cause a fire hazard.