Share-bike company ditches Melbourne

Distinctive yellow bikes commonly dumped on Melbourne's streets, up trees and in rivers are set to disappear as the Singapore-based oBike company operator pulls out of the city.

Melbourne Lord Mayor Sally Capp has asked people to stop using the rental scheme after confirming the company is shutting up shop in the city, almost a week after hefty fines for dumped bikes came into effect.

"oBikes have decided to withdraw from our market here in Melbourne and we are working very closely with them to remove oBikes from the city streets," she told reporters on Tuesday.

Last week, $3000 fines came into effect for bike-share operators unless they cleared share-bikes blocking footpaths within two hours and broken or vandalised bikes within two days.

The fine also applied to bikes left in waterways for more than a week.

It followed a memorandum of understanding signed by oBike and three Melbourne councils in October.

But the company's bikes have been found in rivers, up trees and even on top of public toilets, and Ms Capp says it's clear people "don't respect or appreciate either the oBikes or the impact that their behaviour has".

The lord mayor added she was aware of other rental bike operators planning to launch in Melbourne.

Meanwhile, oBikes will be collected from city streets and sent to an impounding facility before being handed over to the company.

Ms Capp said she had not been provided a reason for oBike pulling out of Melbourne.

AAP was not able to contact oBike for comment. The number for the company's Australian spokesman was disconnected.

Bicycle Network chief executive Craig Richards said it was "a great shame" to see oBike driven out of Melbourne.

"Cities all around the world are embracing dockless bike share, but here in Melbourne people couldn't help but throw them in the river and whinge," he said in a statement.