Bike Sharing Industry Explodes

China’s booming bike-sharing industry is beginning to create problems. The industry has attracted more than 70 companies which have brought more than 16 million bicycles onto the streets. The numbers of bikes in circulation quickly surpassed the capacity of parking locations, which has resulted in many bikes being left in areas that are blocking traffic and posing a safety threat to pedestrians. Regional Chinese governments are now taking measures to rein in the industry. For instance, Beijing has placed a temporary ban on adding new shared bikes to the pool. Companies must install high-precision tracking devices on their bikes and identify where parking is and is not allowed.

Shanghai Business Review is the leading English language website and print magazine for business leaders conducting business in China.