Share bike company pulls out of Melbourne

The distinctive yellow rental bicycles will disappear from Melbourne's streets as the Singapore-based oBike company shuts up shop.

Melbourne Lord Mayor Sally Capp has asked people to stop using the rental scheme after the company confirmed it was pulling out of Melbourne, following controversy over bikes dumped on streets, up trees and in waterways and the promise of hefty fines.

"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.

It comes after the state's environment watchdog joined up with the City of Melbourne to impose $3000 fines for all bike-share operators, from early June.

Ms Capp said it was clear some users "don't respect or appreciate either the oBikes or the impact that their behaviour has".

"It's so hard to regulate people's behaviour in that regard," she added.