The wheels are falling off Australia’s once burgeoning share bike economy, after two more companies announced they were pulling out of capital city markets.

China-owned Ofo bikes and the Australian company Reddy Go were both greeted as part of the shift towards bike sharing when they launched in Australia last year. Ofo is the largest bike-sharing company in the world, and has been labelled the “Uber for bikes”.

But less than a year after launching, both companies have announced they’re pulling out of Australia.

Ofo said this week that it had made a “strategic decision to focus on priority markets internationally” and would “wind down” its operations in Sydney and Adelaide over the next two months.

“As part of this process Ofo will begin to remove bikes from cities and consolidate them to our warehouses,” a spokesperson said.

“This decision does not come lightly, and Ofo Australia will act responsibly in each market as it winds down operations, resolving any outstanding concerns before finalising operations.”

Reddy Go, which was launched last year by University of Technology Sydney graduate Donald Tang, is also pulling out of Sydney.

On Tuesday the Australian reported that the company had sent messages to customers announcing that it was undergoing a “restructuring process” and offering two bikes for free.

“As part of this restructuring process, all existing memberships will likely be transferred to any new business,” the company reportedly said in a text message.

“If you do not wish to wait for restructuring process and wish to terminate your membership, we are happy to offer you and a friend a free bike each (total two bikes) as a sign of our gratitude for your loyalty and support.”

The back-pedal comes just a month after Singapore-based company oBikes pulled out of Melbourne. The distinctive yellow rental bikes had become a controversial presence in Melbourne, where local councils raised concerns about bikes being left in inappropriate locations and urban pollution.

OBikes has also pulled out of Singapore, and customers had complained of being unable to access refunds on deposits.

Ofo had about 200 bikes in Sydney and 100 in Adelaide when it launched last year. Reddy Go had about 160 bikes at its launch.