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New Money > Program Video

New Money 12/17/2016 Bikes on demand

CCTV.com

12-17-2016 17:39 BJT

Part 1 Bicycles make a major comeback 

Urban public bike service isn't a new phenomenon. Government sponsored systems have been introduced in many cities in China. The mobike system has been operating in Shanghai since April, 2016. Over 10,000 Mobikes have been put in use, and the number will exceed 100,000 by the end of this year. It’s reported that on average, each Mobike is used six times a day, with each ride lasting less than 30 minutes.

Mobike has been operating for six months, gaining 4 rounds of financing. Mobike had raised over 100 million dollars in Series C Round by the end of September. With more capital rushing in, Mobike is entering more and more cities.

Part 2 Development of bike sharing in China 

Urban dwellers are now fond of “Green Riding”, a type of sharing economy. All kinds of ride rental APPs are being developed. Besides Mobike, Xqchuxing, a short-trip e-bike renting APP is also popular in Shanghai.

It’s reported that the production cost of every e-bike is about 2,000 yuan and the maintenance cost of each e-bike is about 100 yuan a year. If every e-bike is used four times a day, with the charge of 2 yuan for an hour, each e-bike can earn 2920 yuan  a year. Then the cost of an e-bike can be recovered within a year. But analysts say that Xqchuxing needs to ponder and offer a better plan on how to obtain more users and get more cities involved.

Part 3 Bike sharing industry trends in China

The popularity of Mobikes has attracted a huge amount of investment into the urban cycling sharing market. More than 30 companies have put combined investments of several hundred million dollars into the market within 2 months. 

Many companies are grabbing the short-trip market. But how will they make money after gaining market share? The answer is either “I don’t know” or earning money by selling ads after obtaining enough users. But anyhow our life has changed as users.

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