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.
Dealing with the Party
China’s entrepreneurs squirm under Xi Jinping’s tightening grip / NYT (paywall)
“Analysts say the state intervention has resulted in entrepreneurs’ losing confidence in China’s future. Private-sector investment has been weak, and many tycoons have parked their money abroad should they run afoul of the government.”
China has asked firms to delay bad results during congress, sources say / Bloomberg
Huawei beats Apple’s sales despite iPhone 8, X release / TechNode
Qudian dives nearly 20% on business-model doubts / Caixin
BMW launches new battery factory in China / Electrek
Paracel Island cruises prove an undisputed hit with Chinese holidaymakers / SCMP
Steel: pollution and overcapacity
China vows no return for shuttered steelmakers as curbs bite / Bloomberg
China’s top steelmaking city deepens output cut to fight smog: CSJ / Reuters
Haier Electronics opens Israel hub to find smart home startups / Bloomberg