A bike share company goes bust - China’s latest business and technology news - SupChina

A bike share company goes bust – China’s latest business and technology news


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.

Share
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.