"It’s a lazy decision by the government," said Greens transport spokesman Sam Hibbins. "The Melbourne Bike Share scheme was always a half-cooked scheme that needed more support to get it working. "Whilst helmet laws and the free trams zone were obstacles that could be overcome, the low station density and lack of access in the inner suburbs were critical to the scheme's poor performance." The RACV – which has been running the government-owned scheme since its inception – also wasn't pleased with the move. "It's really a decision the government has made. It's something we are very disappointed with," the general manager of mobility at the RACV, Elizabeth Kim, told radio station 3AW.

Loading "I'm sure they're thinking of the allocation of their budget and we respect that decision." The blue bikes are being used mostly by tourists or for leisure, rather than by commuters or locals as a mode of transport. In similar schemes overseas, the bikes are used on average for three trips each day and in some cities, it is as high as 10 trips. And while it costs a user $3 to hire a bike for the day, the scheme's failure to gain traction meant each ride is costing the program about $8.

Minister for Roads Jaala Pulford said the government had decided to get rid of the scheme ahead of a scheduled replacement of the 50 bike docking stations due to be upgraded, which would have cost taxpayers more money. "This scheme has raised the profile of cycling in Melbourne, but the bikes have reached the end of their functional life and it no longer represents value for money for Victorians," she said. "By phasing out the bike share scheme we will create more space on our footpaths for pedestrians and bike parking, which is what regular cyclists and pedestrians tell us is needed in the CBD." The Bicycle Network has called for the bikes to be moved to regional cities such as Ballarat, Bendigo or Geelong. "The scheme was too small to work in Melbourne, but it is an ideal size for Victoria’s regional cities which are crying out for increased investment in bike riding and active transport," said the group's general manager of public affairs Anthea Hargreaves.

The bikes lined up outside Southern Cross station when they were rolled out in 2010. Credit:Mal Fairclough The docking stations – located in Melbourne, Yarra and Port Phillip council areas – are set to be removed, opening up more footpath space, and subscribers will be refunded. RACV's Elizabeth Kim still saw a future for bike riding schemes in the city. "There are a lot of options that are emerging and I think there is certainly scope in the future for a combination of bikes and other ways of getting around," she said. "Electric scooters are certainly an option, the first thing we would be thinking about is things like safety, being able to to organise them responsibly on the streets."

The success of a bike share scheme depended on a number of factors, she said. "Helmets might have been one of them, but really, the free tram zone, being able to get on a tram right next door to the bike share stations. Also, at the end of the day the bike share scheme was quite small for a city of this size," she said. The day-to-day running of the operation was undertaken by social enterprise Good Cycles, an organisation which helps young people find jobs. With the cancellation of the blue bikes scheme, the state government has said it will provide support and funding to Good Cycles to transition to other projects in Victoria. The scheme was controversial when it was first introduced, failing to gain traction with rider numbers falling short of expectations a year after it hit the streets.

Mandatory helmet laws were initially attributed to the low take-up of the bikes, with the government subsidising the sale of $5 helmets from city convenience stores in a bid to encourage higher use. It comes after the Singaporean company oBike tried to roll out its dockless bike sharing program across Melbourne two years ago. However, the distinctive yellow bikes were dumped, vandalised and even thrown in the Yarra before they were quickly removed from the streets by the company after a year.