Wukong Bicycle has become the first casualty of an increasingly crowded market for shared bikes in China’s major cities, the South China Morning Post reports. The relatively smaller, Chongqing-based startup announced that after five months in circulation, 90 percent of its bikes were presumed lost or stolen, and the company had lost one million yuan ($147,000) during its short-lived operation. While the case indicates the high competitiveness of the new sharing economy, there were also a few key catches:
- Wukong apparently “failed to provide a top quality bicycle supplier,” leading to easily damaged bikes.
- The company neglected to install GPS devices on its bicycles, making them easily stolen or lost.
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