Dockless Bike Sharing in China

 

Scenario

The increasing demand for environmentally friendly transport options has led to a situation where a considerable number of innovations have been developed in China. One of the most prominent of these is bike sharing services, which have become extremely relevant, especially in urban areas. A unique Chinese innovation is the dockless bike, which essentially does not require bike stands in order to be parked. A consequence is that it has become extremely popular, with a number of companies getting involved in the industry, and allowing bike sharing services to grow at an unprecedented rate (Fishman 2016, 92). The success of dockless bikes in the Chinese market has encouraged some of the companies involved in the industry to seek out new markets overseas.

What is it?

Dockless bikes are a new innovation that has been developed in China, and has become an important aspect of the bike sharing industry in the country. It involves a situation where individuals can hire bikes for transportation from one place to another within a city. It is a highly efficient and environmentally friendly means of transport and because of these attributes; dockless bike sharing has received considerable support from the Chinese government. Bike sharing has come to be seen as an efficient means of ensuring that there is the establishment of environmentally friendly transport because it is emission free (Chen, Ardila-Gomez, and Frame 2017, 382).

Who is doing it?

Dockless bike sharing in China has become extremely popular because of two main industry leaders, Mobike and Ofo. These two companies are rivals for the considerable user market that is in the country, with Mobike stating that more than 25 million individuals make use of its services on a daily basis. Because of the considerable competition between these two companies, they each provide their customers with a lot of incentives to use their services (Wu and Xue 2017, 14). A result has been that bike sharing in China has become extremely affordable and has allowed for the industry to grow in popularity.

How does it work?

Bike sharing services in China have been made extremely easy for customers to access. This is because there are a number of bike sharing apps that are available for customers. All that the customer has to do is to make a payment to their mobile phone and they can gain access to the app that they desire. Once this process has been conducted, it is easy for the customer to rent a bike for their purposes (Wang 2017, 842). The easy access to bikes, especially in the larger cities, ensures that there is the advancement of means through which to ensure that there is efficient use of bikes to such an extent that sharing services become more relevant.

Why is it significant?

The significance of bike sharing in China cannot be underestimated because it allows for the advancement of environmental protection policies. In addition, China is one of the biggest polluters in the world and its government has sought to ensure that it implements more environmentally friendly policies to curb its emission levels (Nami 2017, 17). Therefore, the availability of bike sharing services has ensured that there is the establishment of means through which to promote the development of means through which emissions can be reduced while at the same time making transport much more efficient because it is faster and costs much less for individuals who make use of them.

What are the down sides?

One of the biggest downsides of bike sharing, especially dockless bikes, is that there is the potential of disorderly parking and this is to such an extent that it might lead to unnecessary congestion and a public nuisance (Yaghoobirad 2017, 5-6). Moreover, bike sharing services are more prominent or available in large cities than in smaller ones and this is especially the case considering that large cities have a higher population, making it more profitable. However, despite the popularity of bike sharing in China, it is still a new market phenomenon, and the companies involved in it are yet to begin making proper profits from the venture.

Where is it going?

One of the most significant aspects of dockless bikes is that they are likely to be around for a long time. This is because it is a viable alternative of transport over short distances and it involves a situation where there is easy access. Furthermore, as more investment continues to get into the industry, it is likely that it will end up becoming more profitable, which will ensure its continued viability (Ricci 2015, 28). It continued popularity not only in China, but also in the rest of the world will make sure that there is the advancement of means through which it spreads to new markets; enabling the industry to survive indefinitely.

What are the implications of broad diffusion and adoption of this innovation?

The broad diffusion and adoption of this innovation will go a long way towards ensuring that there is a reduction in greenhouse gas emissions. It will also help in the reduction of transport costs to such an extent that it will be possible for individuals to move from place to place more efficiently. Furthermore, bike sharing services will also enable its customers to have easy access to transport without having to wait long periods, as is currently the case.