Oversaturation in the on-demand services market – China’s latest business and technology news


Several recent articles highlight cases of on-demand and short-term-rental companies struggling in an oversaturated market in China:

  • The China president of home rental business Airbnb resigned unexpectedly after a four-month stint, setting further back the company’s struggle to penetrate the Chinese market, according to Bloomberg. Airbnb’s main Chinese competitor, Tujia, recently raised $300 million to reach a valuation of $1.5 billion.
  • TechNode reports that high-end electric vehicle rental company Ezzy “has been disbanded and stopped service,” with users unable to withdraw even their $300 deposits.
  • TechNode also says that other than on-demand bicycle giants Ofo and Mobike, who are currently aggressively expanding overseas, bicycle rental companies are starting to struggle in China. One company, Bluegogo, is having trouble supplying refunds for deposits, many users have reported, while another company known for flashy gold-colored bicycles has recently folded.
  • SupChina last month suggested that China had reached “peak bike sharing,” as Beijing joined 11 other cities to ban the addition of new rental bikes on the streets.
  • The Information reports (paywall) that after having achieved domination of much of China’s bicycle-sharing market, Mobike is branching out into ride sharing, threatening the market dominance of Didi Chuxing, as is on-demand delivery company Meituan Dianping.

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Lucas Niewenhuis

Lucas Niewenhuis is an associate editor at SupChina who helps curate daily news and produce the company’s newsletter, app, and website content. Previously, Lucas researched China-Africa relations at the Social Science Research Council and interned at the Council on Foreign Relations in New York. He has studied Chinese language and culture in Shanghai and Beijing, and is a graduate of the University of Michigan.