Bike-sharing rivalry crowds Beijing’s sidewalks
BEIJING — The shiny bicycles in bright orange, yellow or blue are everywhere in China’s most prosperous cities, even in places they probably shouldn’t be.
The two-wheelers are unlocked and tracked using smartphone apps and can be rented for as little as 7 U.S. cents for half an hour. They are the latest symbol of heavy spending by venture capital firms in China’s internet sector, where startups are racing to attract more users, seemingly regardless of the cost.
Around 2.2 million bicycles have been deployed in China by companies that include Ofo, Mobike and Bluegogo, and are most frequently used in cities such as Beijing and Shanghai, according to internet analyst Xue Yu at IDC China.
In their rivalry to be market leader in bike-sharing, the companies have raised hundreds of millions of dollars and are offering discounts and free rides to attract more users. It’s unclear if the business model is sustainable or how it might change if a winner emerges.