[Global Network Technology Reporter Zhang Yang] China's shared bicycle boom has added more than 2 million new bicycles to its streets and lanes. This boom highlights the adaptability of Chinese consumers and businesses. In the last four months of 2016, the number of monthly active users of the top two shared bicycle applications increased by more than 9 million.
Unlike other shared projects around the world, China's shared bicycles can be accessed and parked anywhere, and although it is convenient for users, it is a headache for the urban management department.
The competition in the shared bicycle industry is extremely fierce. Every company is launching more bicycles in order to gain the upper hand in the fight for market share. This is reminiscent of the fight between Uber and Didi Chuxing. After the battle, Uber came from the U.S. to win the fight.
This share of bicycle boom has been supported by domestic and foreign investors. According too, the company had a valuation of $1 billion after a round of financing earlier this month and became the first "unicorn" company in the global bicycle rental industry.
Both Mobow and ofo have not announced profitability expectations. However, according to Lin Biao, assistant professor of marketing at Shanghai CEIBS, it is assumed that the user will pay RMB 1 for each ride and each Mobike cycle will have to balance only 2.3 rides a day.
Lin Hao said that at least eight Chinese bicycle rental start-up companies have started the first round of large-scale financing.
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