Tag Archives: Bike sharing

China’s booming bike sharing sector


First, there was the ride-sharing war between Didi Chuxing and Uber. Now, the battle for the best bike sharing startup is heating up. Bike sharing is thriving in China, with investors pouring hundreds of millions of dollars in to two of the country’s biggest players: Mobike and Ofo. To date, Mobike has raised a total of $928 million, while Ofo has recently received $700 million, raising its total funding to $1.29 billion. What attracts investors to these two startups is their mammoth scale. Each company boasts of having more than 100 million registered users and their bikes can be found in more than 20 cities in China. Now the big question is, can these companies be profitable given their weak business model, slim margins, and losses from thieves and vandals? It seems that investors are undeterred and both companies are eyeing global domination and have expanded outside of China.

Will bike sharing be the next big thing?


Bike sharing startups are putting more people on two wheels like never before. In Europe, US, Japan, and China, bike sharing is becoming increasingly popular, so popular that research by global strategy consulting firm Roland Berger indicates that the bike-sharing market will grow to $6 billion by 2020. Investors have likewise taken notice. China’s Mobike has a total of $325 million in venture capital, while its rival Ofo has $580 million in its war chest. In the US, Limebike has recently raised $12 million in venture funding from a consortium of investors. As bike-sharing companies gain traction and younger consumers continue to trend away from ride-sharing services like Uber and Lyft, it looks like bike-sharing programs are here to stay.