China as the world’s populous country appears to be abandoning Bike sharing over time, one of the largest bike sharing company which is about to collapse tells the story. The world’s largest Bike sharing app and company Bluegogo has recently reported funding issues along with company downsizing.
According to Chinese local Newspapers report, the Reuters visited the company’s office in Beijing and found out that the company is in serious debts, bike sharing giant had 2 million Yuan equivalent to $300,000 just for office rent.
The company had raised funding of 600 million Yuan ($90 million) and had 700,000 bicycles apparently unable to refund deposits according to a commentator on Webio.
If Bluegogo collapses, which is quite apparent by looking at the current circumstances, its rivals will probably grab the market and become more profitable by cutting back on the number of bikes and raising prices. Ofo app which is owned by Alibaba and Mobike which is backed by Tencent is also in talks for mergers with China’s Uber and Didi—according to Bloomberg.
Ofo and Mobike have already made joint ventures in other countries besides China; you may found Mobike and Ofo in some parts of the UK, Australia, Italy, US, and Singapore. The company also started briefly in San Francisco but that was not much success as a dominating business.
Bike Sharing Companies in Pakistan
There are several startups in Pakistan that are struggling to grow in the market. Pakistan is a market where these kinds of startups can grow because of so many reasons and traveling conditions. Careem a ride-hailing app which is dominating the Pakistani market currently has also started Bike sharing in Pakistan. Nonetheless, there were already players in the market like Vheelz and Bikeya.