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Dynamic Exit Mechanism Needed for Bike-Sharing Platforms

China's bike sharing industry needs a mechanism that restricts the number of cycles on the streets while driving out poorly-performing companies and allowing newcomers to enter the market

By Xu Mouquan Updated Jun.14

Many of China's bike-sharing operators provide quite a low quality of service, a recent evaluation in Guangzhou shows. The burgeoning industry has seen many cities cap the number of bicycles on the streets. But a commentary by news portal www.gmw.cn argues a dynamic mechanism is needed to restrict the numbers while allowing newcomers to enter and driving the worst performers out. 

The Guangzhou government recently published an evaluation of internet bike-sharing services which had grim results – the top two players, Mobike and ofo, scored a little over 60 out of 100. The local government is pushing the operators to improve, the portal says. But city governments should also focus on improving management of the companies. 

Given excessive, unchecked proliferation of bikes in cities could congest roads and threaten public safety, some cities have already put a cap on the number of bikes. But what it also needed, the editorial says, is an exit mechanism to ensure the worst-scoring operators are driven out. This would drive the sector to improve its operating ability and service overall.