Published on : Saturday, November 25, 2017
Bluegogo, China’s third largest bike sharing firm has dumped more than 60000 bicycles in Chinese cities. Hangzhou has 3,572 stations and 84,100 bikes which are noted as the maximum boom in China. Chinese bike sharing is now booming among the local people and the tourists as well to explore the busy cities and for this, there are many companies investing in bike sharing.
There are about twenty million people signed up to use them.
The investors showered the company with $58 million in funds.
But with rental rates as low as $0.07 per half-hour, days of Bluegogo were numbered and last week the company folded. In an apologetic letter, its CEO approved that he had been filled with arrogance.
In the space of 18 months, there are the dockless bike-sharing which has become one of the hottest investment trends in China, with the two biggest players each having raised over $1 billion in venture funds, respectively.
The invested money has funded a revolution on the traffic-choked streets of the most busiest Chinese cities, giving urbanites a low-cost, carbon-free means to get around quickly.
Barely two years ago, would the idea that bicycles return to China’s cities in a significant way would have seemed absurd.
Bicycle commuting, commonplace in large Chinese cities as recently as the late 1990s, was viewed as pre-modern, down-market and a nuisance.
These busy cities had been redesigned to facilitate automobiles, not bikes or pedestrians. For those who couldn’t or wouldn’t buy a car, China embarked on the biggest mass transit build-out in history.
Even cities like Shanghai with excellent public transportation faced a knotty problem: the “last mile” issue. Most people are willing to walk less than a mile to a train or bus (in the U.S., it’s a quarter mile). Otherwise they’ll resort to another form of transportation, usually motorized.
The problem has long resisted simple solutions, especially in China, where air pollution leaves people even less eager to stroll around outside.
Traditional bike-sharing, in which users rent a bike from a station or rack (preferably close to a transit stop) and return it to another one (preferably close to home), are a favourite last-mile solution in parts of the U.S. and Europe. With government support, they even bloomed in a few parts of China in the late 2000s.
As recently as 2016, Hangzhou was home to the world’s biggest bike-sharing network, with 3,572 stations, 84,100 bikes and an average of 310,000 users per day.