Yellow scooters are on the way.

Ofo is among the  12 companies that have  met the San Francisco Municipal Transportation Agency’s June 7 deadline to apply for a permit to operate scooters in the city. The Chinese bikesharing unicorn confirmed to PitchBook Friday that it’s planning an official foray into scootersbut has opted to wait for adequate permits before developing the hardware.
Founded in 2014 in Beijing, Ofo has raised more than $2 billion in venture capital funding from Alibaba and other investors, reaching a valuation of $3 billion in August. The company launched its bikes in the US last fall and now has 10 million bikes in more than 180 cities around the world. If granted a permit in San Francisco, the city would become the first in which Ofo will launch its scooter services. Ofo will release its first batch of scooters in the summer of 2018.

Ofo’s dockless bikes in Seattle

The San Francisco transportation agency will select just five companies to participate in its newly established year-long pilot program, which will allow 1,250 scooters to roam the streets for the first six months, then if the program is successful, it will grant permission to up to 2,500. The agency is selecting companies based on their commitment to meeting permit requirements. “The SFMTA may also consider an operator’s past compliance with applicable laws and its efforts to ensure its users are following the law as well,” a spokesperson told PitchBook in an email. 

That means Bird, Spin and Lime, which all released scooters in San Francisco earlier this year before regulatory measures were established, may be denied a permit.  The SFMTA  announced the program last montheffectively forcing all scooters out of the city temporarily  in an attempt to bring order to the scooter chaos.
Uber and Lyft have also applied to the program, per reports, though neither of the ridehailing giants have scooters in rotation yet. For its part, Uber recently acquired JUMP Bikes, while Lyft is reportedly in talks to purchase Motivate, which operates multiple brands of bikeshare networks, including CitiBike. Bikeshare startups like Lime and Spin, and now Ofo, have already expanded into scooters; it’s likely both Uber and Lyft will operate any scooter fleet through bikeshare subsidiaries.
To make matters more complicated, Uber is also vying for Motivate, according to an Axios report published Friday. A deal for the startup is expected to be valued at around $250 million.

Unsurprisingly, Bird, which is raising another $200 million at a billion-dollar valuation to become the first scooter unicorn, was also among the applicants. So were Spin, Lime, Scoot, Ridecell, USSCooter and Skip, per local reports.

Razor, the company that put scooters on the map in the first place, also applied, signaling plans for the household name to launch a scooter-sharing program as well.  

Related read: Scooter startup Bird faces an uphill battle

    Here’s more on scooter mania.

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