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.