Prized car parking bays in the CBD are among "hundreds" of areas across Melbourne that should be given over to dockless bikes if the controversial model is to succeed, an internal Transport Department document advises.

Geo-fencing – technology that would encourage users to park in certain areas – should also be a priority for future bike-share schemes, according to advice being considered by Transport for Victoria and VicRoads.

The recommendations have been put forward in a report by consultant Elliot Fishman, as the notorious oBike operation ceases operating in Melbourne about a year after unleashing hundreds of yellow bicycles onto the city’s streets without warning.

oBikes were often dumped indiscriminately. Credit:Lucie Billingsley

The Singaporean company exited the city when tough new rules were being enforced by the EPA to crack down on the constant vandalism, with bikes being dumped in the Yarra River and strewn on footpaths and railway lines.