Ofo confirmed it will shut down operation in Seattle Monday afternoon after the city adopted a new $250,000 annual fee for bikeshare operators.

Ofo is one of three companies permitted to launch in Seattle under a one-year dockless bikeshare pilot. The pilot concluded this month and the city is finalizing regulations for a permanent bikeshare program — one that will not include Ofo’s bright yellow bikes.

Ofo’s Seattle General Manager, Lina Feng, issued the following statement after the City Council unanimously approved the new fee:

The exorbitant fees that accompany these new regulations — the highest in the country — make it impossible for Ofo to operate and effectively serve our riders, and as a result, we will not be seeking a permit to continue operating in Seattle. We’re incredibly disappointed to be leaving the first U.S. city to welcome Ofo and thank the City for its partnership and support this last year.

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