How did bike-sharing schemes in China fall apart?

Subscribe our YouTube channel for our latest news update for free: The bike-sharing industry in China is worth US$ 3.6 billion. Also referred to as ’uber for bikes’, bike sharing is digital bike renting that can cost as little as US$ for 3 months. Dockless bikes became popular in the country, all transactions can be completed online and they use GPS tracking. Given its popularity, many invested into the industry propping up new companies increasing the supply of bikes. China now has 17 million bikes. However, only 3 companies remain down from the 40 companies that had been previously present in the market. Many of whom went bankrupt. While prices are low for users, companies had to incur the high costs of buying and maintaining the bikes and did not benefit from economies of scale. Many players in the industry chose to consolidate. There have been rumours about Ofo and Mobike merging but they have denied this according to loca