China’s Public Bike Craze

Yinuo Li
Yinuo Li
Jul 20, 2017 · 3 min read

Over the last few months the number of people cycling along Beijing’s leafy avenues has surged. This is in large part thanks to an exciting innovation that is revolutionizing cycling in the city.

Many, if not most, of the cyclists on Beijing’s roads today are using public bike shares. Ok, so this is nothing new. Beijing is simply following in the footsteps, or tire tracks, of many cities across the world. However, in a pattern that has become familiar over decades, Chinese entrepreneurs have ‘borrowed’ the idea from outside and then set about using local innovation to adapt it to local conditions — in this case, using phone apps and GPS.

What makes these ubiquitous, cheerfully colored public bikes uniquely convenient is that they’re dockless. You download an app; it uses GPS to tell you where the nearest bikes are; you scan a QR code on the bike; and it unlocks. Once you’ve finished using it, you can leave the bike locked in any public place, waiting for the next user. It’s been described as Uber for bikes. A half-hour journey costs just 7 cents; 14 for an hour.

In less than a year, the sector has exploded, only really taking off since the middle of 2016. Orange Mobikes are one of the industry leaders, having flooded the streets of 34 Chinese cities with more than a million bikes, over 100,000 of which are in Beijing. This compares with just 10,000 in NYC and 3,700 in DC. Mobikes are so green they even self-charge their GPS receivers while being ridden. The bright yellow Ofo bikes (the name was chosen because the letters ‘ofo’ resemble a bicycle) are the result of a Peking University project; this startup was recently valued at over $1 billion.

In 1980, 60% of Beijing’s commuters cycled; by 2014 this figure was below 12%, with bikes replaced by cars. The Beijing government is hoping to get this back up to 18% by 2020 and has invested in conventional shared bikes with fixed docking units. But it’s innovative small enterprises that are leading the way, and they’re taking advantage of China’s highly favorable environment for startups. In addition to government-backed venture funds of more than $200 million, there are tech incubators and startup accelerators designed to foster new, innovative entrepreneurship with the potential to transform the face of the country.

There have recently been moves to export the Chinese model back out to the rest of the world, including the US, where previous bike shares have floundered due to high operating costs and low take-up. Ofo is reported to be rolling out 50,000 bikes in 10 US cities this summer. Maybe even the US, where the car is king, is about to see its own transport revolution of its own.

Bull in a China Shop

An alternative voice on China matters

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Yinuo Li

Written by

Yinuo Li

Bull in a China Shop

An alternative voice on China matters

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