Sharing Economy Sees Rapid Growth in China
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TaiShang
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***
China’s bike-sharing industry braces for explosive growth
By Qiang Wei (People's Daily) 14:07, March 05, 2017
China’s bike-sharing industry has embraced an explosive growth since last year. Data showed that by the end of last year, millions of bikes offered by over 20 bike-sharing companies have expanded their service to nearly 19 million users.
The bike-sharing service enables users to find, unlock and pay to rent the bicycles through a smartphone app. Mobike and Ofo are among the two largest of a growing crop of private bike-sharing operators.
Ofo, the company behind the yellow two-wheelers, announced on 1st Marchthat it has raised 3.1 billion yuan ($450 million) in a fresh round of funding. It not only represents the largest single deal in terms of fund raised by a bike-sharing firm, but also swells the firm to the industry’s richest unicorn, a start-up companyvalued at over 1 billion dollars.
Shared bikes are lined up outside a subway entrance in CBD in Beijing. (Photo by Qiang Wei from People’s Daily)
Public bike is not a fresh thing. Many Chinese cities have launched public bikes previously to meet the citizens’ demands for the “last mile” of public transportation, but congested public space and complicated procedures restrained the pace of such efforts.
Unlike the services provided by local governments, users of the newly emerging shared bikes like Orange-hued Mobike can find and pay for bicycles via a smartphone app and then leave them wherever they want. The location of the bike will be recorded by the data platforms, so that the next users can find one easily.
The economical and convenient service also responds to China’s call for green, energy-saving transportation, attracting a host of fans due to its convenience and low price.
These bikes, a combination of sharing-economy, high-technology and market demands, also provide the outside world a glimpse into China’s huge potential in sharing economy.
PwC’s projections show that five key sharing sectors—travel, car sharing, finance, staffing, and music and video streaming—have the potential to increase global revenues to around 335 billion dollars by 2025, over 20 times higher than the number in 2016.
The latest report released by McKinsey & Company on China’s sharing economy revealed that shared transportation is gaining wide popularity in the Chinese market, while office space and technology sharing is rising.
So far, China’s sharing economy is applied in transportation, office space, skills and finance, while segment fields including car-hailing, bike-sharing, car-sharing and apartment-renting are growing in a faster pace.
China’s bike-sharing industry braces for explosive growth
By Qiang Wei (People's Daily) 14:07, March 05, 2017
China’s bike-sharing industry has embraced an explosive growth since last year. Data showed that by the end of last year, millions of bikes offered by over 20 bike-sharing companies have expanded their service to nearly 19 million users.
The bike-sharing service enables users to find, unlock and pay to rent the bicycles through a smartphone app. Mobike and Ofo are among the two largest of a growing crop of private bike-sharing operators.
Ofo, the company behind the yellow two-wheelers, announced on 1st Marchthat it has raised 3.1 billion yuan ($450 million) in a fresh round of funding. It not only represents the largest single deal in terms of fund raised by a bike-sharing firm, but also swells the firm to the industry’s richest unicorn, a start-up companyvalued at over 1 billion dollars.
Shared bikes are lined up outside a subway entrance in CBD in Beijing. (Photo by Qiang Wei from People’s Daily)
Public bike is not a fresh thing. Many Chinese cities have launched public bikes previously to meet the citizens’ demands for the “last mile” of public transportation, but congested public space and complicated procedures restrained the pace of such efforts.
Unlike the services provided by local governments, users of the newly emerging shared bikes like Orange-hued Mobike can find and pay for bicycles via a smartphone app and then leave them wherever they want. The location of the bike will be recorded by the data platforms, so that the next users can find one easily.
The economical and convenient service also responds to China’s call for green, energy-saving transportation, attracting a host of fans due to its convenience and low price.
These bikes, a combination of sharing-economy, high-technology and market demands, also provide the outside world a glimpse into China’s huge potential in sharing economy.
PwC’s projections show that five key sharing sectors—travel, car sharing, finance, staffing, and music and video streaming—have the potential to increase global revenues to around 335 billion dollars by 2025, over 20 times higher than the number in 2016.
The latest report released by McKinsey & Company on China’s sharing economy revealed that shared transportation is gaining wide popularity in the Chinese market, while office space and technology sharing is rising.
So far, China’s sharing economy is applied in transportation, office space, skills and finance, while segment fields including car-hailing, bike-sharing, car-sharing and apartment-renting are growing in a faster pace.
Deidara
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You are spot on bro. Private ownership will become extinct in the future. The organizing and systematizing technology was not that advance when they tried communism. So it failed. But in the future humans will know better and private ownership will be unnecessary.
jhungary
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China has been a collectivist society for thousands of years which promotes the public over self. I don't see that changing anytime soon. The Chinese also likes dynamism and lively places.
Moreover we are entering into the sharing economy now, where you own nothing and have access to everything. Apps such as Uber, Grab, and Airbnb are on the rise and more are coming up. China has their own version of those apps. In a sharing economy, resources are used much more efficiently. Many things that we currently own are actually unproductive most of the time. For example, cars are parked in the parking lot most of the time instead of moving in the road. We could cut down the number of parking lots if cars are used more efficiently. The sharing economy will allow us to reduce ecological footprints dramatically. Why do you need to own a wedding gown if you are going to wear it only once (hopefully)?
Economies of scale in sharing is going to make renting cheaper in the future. However, a certain level of density is required for this to happen. I think the reason why the sharing economy is working better in China than in the West is because of density and being more open to the concept of sharing resources.
First of all, Uber, Grab and Airbnb is not sharing resource, they are a trade, money for your own car, share resource would mean Uber driver won't charge you for a ride, or Airbnb landlord won't charge you for a night.
Those are application develope to have people more way to earn money, not intented to share resources. Otherwise you would call Taxi, Public Transport or Hotel a shared resources.
Share economy does not only reduce s ecological footprint, but also reduces financial footprint. You gain from having more park and leisure facilities, but you loses on factory that produce cars, household items.
In market economy, it's always take resource to gain resource, you need to put in coal for electricity, you put in textile to turn them into clothes, you put one thing (either physical or metaphysical) and turn into another thing, but to share resource, you inheritly inhabit your financial growth.
TaiShang
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Smart Chart: Investors Ride Bike-Sharing Wave
Mar 06, 2017 04:59 AM
China has turned the business of bike sharing, traditionally a money-losing proposition sponsored by municipal governments, into the latest hot investment trend. Hundreds of millions of dollars have poured into the sector over the last two years, turbocharging an industry that has flooded the streets and sidewalks of major Chinese cities with legions of bikes in yellow, orange, blue, neon green and other colors, each representing a different startup.
Unlike older city-sponsored services, the new generation of bike-sharing companies uses smartphone-based apps and location-based technology to let subscribers find and unlock the closest bike parked anywhere on the street. When riders reach their destination, they can park and lock their bikes anywhere, paying a small fee based on ride distance or time of use.
Leading the startup pack is Ofo, known for its bright yellow bikes, and Mobike, whose stylish two-wheelers are known for their modern look and orange-and-gray coloring. Ofo became the latest recipient of investor largesse last week, when it announced it had raised a fresh $450 million in new funding.
The two have been regular fixtures in the headlines for their frenzied growth over the last year, including hundreds of millions of dollars in fundraising. They now boast a pedigree of A-list investors, including the likes of Chinese internet giant Tencent, global private equity major Warburg Pincus, venture giant Sequoia Capital, and Singaporean sovereign wealth fund Temasek.
***
Collectivism becoming an industry with the help of mobile technology.
@long_ , @samsara , @terranMarine
Mar 06, 2017 04:59 AM
China has turned the business of bike sharing, traditionally a money-losing proposition sponsored by municipal governments, into the latest hot investment trend. Hundreds of millions of dollars have poured into the sector over the last two years, turbocharging an industry that has flooded the streets and sidewalks of major Chinese cities with legions of bikes in yellow, orange, blue, neon green and other colors, each representing a different startup.
Unlike older city-sponsored services, the new generation of bike-sharing companies uses smartphone-based apps and location-based technology to let subscribers find and unlock the closest bike parked anywhere on the street. When riders reach their destination, they can park and lock their bikes anywhere, paying a small fee based on ride distance or time of use.
Leading the startup pack is Ofo, known for its bright yellow bikes, and Mobike, whose stylish two-wheelers are known for their modern look and orange-and-gray coloring. Ofo became the latest recipient of investor largesse last week, when it announced it had raised a fresh $450 million in new funding.
The two have been regular fixtures in the headlines for their frenzied growth over the last year, including hundreds of millions of dollars in fundraising. They now boast a pedigree of A-list investors, including the likes of Chinese internet giant Tencent, global private equity major Warburg Pincus, venture giant Sequoia Capital, and Singaporean sovereign wealth fund Temasek.
***
Collectivism becoming an industry with the help of mobile technology.
@long_ , @samsara , @terranMarine
Hamartia Antidote
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This is a nice, informative thread by @Mista and, thanks to, @ahojunk . Hopefully, it will serve its purpose, and won't be a retreat for the senile.
***
China’s bike-sharing industry braces for explosive growth
By Qiang Wei (People's Daily) 14:07, March 05, 2017
China’s bike-sharing industry has embraced an explosive growth since last year. Data showed that by the end of last year, millions of bikes offered by over 20 bike-sharing companies have expanded their service to nearly 19 million users.
The bike-sharing service enables users to find, unlock and pay to rent the bicycles through a smartphone app. Mobike and Ofo are among the two largest of a growing crop of private bike-sharing operators.
Ofo, the company behind the yellow two-wheelers, announced on 1st Marchthat it has raised 3.1 billion yuan ($450 million) in a fresh round of funding. It not only represents the largest single deal in terms of fund raised by a bike-sharing firm, but also swells the firm to the industry’s richest unicorn, a start-up companyvalued at over 1 billion dollars.
Shared bikes are lined up outside a subway entrance in CBD in Beijing. (Photo by Qiang Wei from People’s Daily)
Public bike is not a fresh thing. Many Chinese cities have launched public bikes previously to meet the citizens’ demands for the “last mile” of public transportation, but congested public space and complicated procedures restrained the pace of such efforts.
Unlike the services provided by local governments, users of the newly emerging shared bikes like Orange-hued Mobike can find and pay for bicycles via a smartphone app and then leave them wherever they want. The location of the bike will be recorded by the data platforms, so that the next users can find one easily.
The economical and convenient service also responds to China’s call for green, energy-saving transportation, attracting a host of fans due to its convenience and low price.
These bikes, a combination of sharing-economy, high-technology and market demands, also provide the outside world a glimpse into China’s huge potential in sharing economy.
PwC’s projections show that five key sharing sectors—travel, car sharing, finance, staffing, and music and video streaming—have the potential to increase global revenues to around 335 billion dollars by 2025, over 20 times higher than the number in 2016.
The latest report released by McKinsey & Company on China’s sharing economy revealed that shared transportation is gaining wide popularity in the Chinese market, while office space and technology sharing is rising.
So far, China’s sharing economy is applied in transportation, office space, skills and finance, while segment fields including car-hailing, bike-sharing, car-sharing and apartment-renting are growing in a faster pace.
This is a great sharing idea unfortunately you need a population which will respect it. People at the beginning thought this idea was awesome but feared some people may fallback on their bad ways and ruin it for everyone. As feared it has started already:
http://www.allchinatech.com/will-vandalism-shatter-bike-sharing-in-china/
Last edited:
TaiShang
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Noted. It is a social learning and adapting process.
"Such vandalism has prompted police intervention. On Feb. 28, Chengdu police detained a man who ran a traditional bike rental business for burning and burying more than 10 shared bikes from various brands two days earlier.
Liu Xuequan disclosed that manufacturers are working on technical upgrades to prevent bikes from being dismantled or stolen.
Ofo founder and CEO Dai Wei said bike misuse has not created a notable loss for the company.
"During the past three months, 'inactive bikes,' which means they might have been damaged or taken home, only accounted for 1 percent of the total," he said, while calling all users to treat the vehicles nicely."
Quted People's Daily.
TaiShang
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'Kingdom of Bicycles' embraces car sharing
China Daily, March 9, 2017
When car sharing started in Canada and then spread to the United States in the mid-1990s, people had no idea the business model would be flourishing 20 years later on the other side of the globe in China.
Now the share cars, mostly electric, are ready for Chinese users in minutes once they complete the required registration via an app. And in most cases, sharing costs less than traditional car rental services, which charge on a daily basis.
Gofun Chuxing, an app which provides car-sharing services in Beijing, launched by State-owned Beijing Shouqi Group, is one of the players in the swelling car-share market. With more than 1,100 cars available in Beijing, the company also offers services in Shanghai, Xiamen and Qingdao.
Wei Dong, chief executive officer of Gofun, believes that as share cars increase there will eventually be fewer cars on the road.
Wei said: "We see hundreds of cars parked around office buildings for hours until the owners drive them home after work. It is a total waste of resources."
Gofun was founded in 2015 and the eponymous app was launched in 2016. With a 699-yuan ($101) deposit, every drive via Gofun costs 1 yuan per kilometer and 0.1 yuan per minute.
It is expected that Gofun will be available in 20 cities and provide more than 15,000 cars nationwide by the end of 2017.
Once known as the "Kingdom of Bicycles" in the 1980s, China has now taken the top spot in the car market globally, seeing more cars on the road than ever before.
According to the Traffic Management Bureau, part of the Public Security Ministry, Chinese own a total of 135 million private cars, making about 260 million trips a day by June 2016.
To ease traffic jams, local governments have placed a limit of the number of vehicles on the road, especially in big cities such as Beijing.
Sensing the potential to cater to people who don't own cars, dozens of Chinese enterprises have marched into the market in recent years, including Car2go, a car-sharing service provider backed by automotive giant Daimler AG.
Zhang Xu, an analyst at Beijing-based consultancy Analysys, said the share cars can offer an alternative tailored traveling choice; and the potential for the future market is great.
Zhang said: "Currently those enterprises can't really provide enough cars to meet the demand, which shows the desire for this kind of service. I believe the market will grow in the second half of 2017 and investment will pour into the market."
As more people choose to use car-sharing services, they have also encountered problems, such as lack of parking spaces.
In January, Beijing Shouqi announced a strategic partnership with the Beijing Municipal Road & Bridge Group Co Ltd. The deal allows Beijing Shouqi to have access to the latter's more than 50 parking lots in Beijing's second and third ring roads.
Tan Yi, chief operating officer of Gofun, said: "At the moment there are some problems in the market. But we also see that the public now have a better understanding of those emerging businesses. And the government is firmly promoting the use of new energy and the development of the sharing economy."
According to Tan, service providers are expected to turn a profit after two or three years when the overall environment improves.
He said: "At that time, producing new energy cars and the operation will cost less than today. And the government may help us access more parking resources."
China Daily, March 9, 2017
When car sharing started in Canada and then spread to the United States in the mid-1990s, people had no idea the business model would be flourishing 20 years later on the other side of the globe in China.
Now the share cars, mostly electric, are ready for Chinese users in minutes once they complete the required registration via an app. And in most cases, sharing costs less than traditional car rental services, which charge on a daily basis.
Gofun Chuxing, an app which provides car-sharing services in Beijing, launched by State-owned Beijing Shouqi Group, is one of the players in the swelling car-share market. With more than 1,100 cars available in Beijing, the company also offers services in Shanghai, Xiamen and Qingdao.
Wei Dong, chief executive officer of Gofun, believes that as share cars increase there will eventually be fewer cars on the road.
Wei said: "We see hundreds of cars parked around office buildings for hours until the owners drive them home after work. It is a total waste of resources."
Gofun was founded in 2015 and the eponymous app was launched in 2016. With a 699-yuan ($101) deposit, every drive via Gofun costs 1 yuan per kilometer and 0.1 yuan per minute.
It is expected that Gofun will be available in 20 cities and provide more than 15,000 cars nationwide by the end of 2017.
Once known as the "Kingdom of Bicycles" in the 1980s, China has now taken the top spot in the car market globally, seeing more cars on the road than ever before.
According to the Traffic Management Bureau, part of the Public Security Ministry, Chinese own a total of 135 million private cars, making about 260 million trips a day by June 2016.
To ease traffic jams, local governments have placed a limit of the number of vehicles on the road, especially in big cities such as Beijing.
Sensing the potential to cater to people who don't own cars, dozens of Chinese enterprises have marched into the market in recent years, including Car2go, a car-sharing service provider backed by automotive giant Daimler AG.
Zhang Xu, an analyst at Beijing-based consultancy Analysys, said the share cars can offer an alternative tailored traveling choice; and the potential for the future market is great.
Zhang said: "Currently those enterprises can't really provide enough cars to meet the demand, which shows the desire for this kind of service. I believe the market will grow in the second half of 2017 and investment will pour into the market."
As more people choose to use car-sharing services, they have also encountered problems, such as lack of parking spaces.
In January, Beijing Shouqi announced a strategic partnership with the Beijing Municipal Road & Bridge Group Co Ltd. The deal allows Beijing Shouqi to have access to the latter's more than 50 parking lots in Beijing's second and third ring roads.
Tan Yi, chief operating officer of Gofun, said: "At the moment there are some problems in the market. But we also see that the public now have a better understanding of those emerging businesses. And the government is firmly promoting the use of new energy and the development of the sharing economy."
According to Tan, service providers are expected to turn a profit after two or three years when the overall environment improves.
He said: "At that time, producing new energy cars and the operation will cost less than today. And the government may help us access more parking resources."
onebyone
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China's Mobike Wants its Bicycles to Cover 100 Cities This Year
Bloomberg News
20 มีนาคม 2560 17:16 GMT+7
China’s bike-sharing war will spread beyond the country this year with Mobike planning to more than triple its coverage to more than 100 cities globally before the end of 2017.
Mobike’s orange-hued bicycles have become a staple of Chinese sidewalks since it started formal operations last year. It’s attracted hundreds of millions of dollars from backers including Tencent Holdings Ltd., Warburg Pincus LLC, TPG Capital, Temasek Holdings Pte and Foxconn Technology Group. The startup will officially start services Tuesday in Singapore, its first non-Chinese location, where rival Ofo has also expanded.
Once the symbol of China’s working class, bicycles have become the latest battleground for global capitalists who are pouring money into apps that allow users to rent them in 30-minute increments. The advantage for clients is the ability to leave bikes wherever they’d like. Some of the largest providers in the nascent sector are already looking to expand overseas to gain scale, as the number of domestic players reaches saturation.
“This year our hope is to enter more than 100 cities,” said Hu Weiwei, a Mobike co-founder, adding they were currently in about 30 hubs around China. Much of that expansion will be domestic, but she said Mobike will also cover international cities beyond Singapore this year. It didn’t have a target for how many, Hu added.
Mobike has created a Singapore-specific model that obeys local safety regulations and will place the bikes at locations away from the city center to prevent congestion, she said.
That helps address an issue that’s been contentious back home. Chinese media has reported that the Shanghai Municipal Government is banning bike-sharing services from placing new bicycles on the city’s sidewalks. A Mobike spokeswoman said the government agency had already denied the accuracy of those reports.
Ofo’s overseas expansion also includes the U.S. and U.K., the company has said.
— With assistance by David Ramli
https://www.bloomberg.com/news/arti...ts-its-bicycles-to-cover-100-cities-this-year
Bloomberg News
20 มีนาคม 2560 17:16 GMT+7
China’s bike-sharing war will spread beyond the country this year with Mobike planning to more than triple its coverage to more than 100 cities globally before the end of 2017.
Mobike’s orange-hued bicycles have become a staple of Chinese sidewalks since it started formal operations last year. It’s attracted hundreds of millions of dollars from backers including Tencent Holdings Ltd., Warburg Pincus LLC, TPG Capital, Temasek Holdings Pte and Foxconn Technology Group. The startup will officially start services Tuesday in Singapore, its first non-Chinese location, where rival Ofo has also expanded.
Once the symbol of China’s working class, bicycles have become the latest battleground for global capitalists who are pouring money into apps that allow users to rent them in 30-minute increments. The advantage for clients is the ability to leave bikes wherever they’d like. Some of the largest providers in the nascent sector are already looking to expand overseas to gain scale, as the number of domestic players reaches saturation.
“This year our hope is to enter more than 100 cities,” said Hu Weiwei, a Mobike co-founder, adding they were currently in about 30 hubs around China. Much of that expansion will be domestic, but she said Mobike will also cover international cities beyond Singapore this year. It didn’t have a target for how many, Hu added.
Mobike has created a Singapore-specific model that obeys local safety regulations and will place the bikes at locations away from the city center to prevent congestion, she said.
That helps address an issue that’s been contentious back home. Chinese media has reported that the Shanghai Municipal Government is banning bike-sharing services from placing new bicycles on the city’s sidewalks. A Mobike spokeswoman said the government agency had already denied the accuracy of those reports.
Ofo’s overseas expansion also includes the U.S. and U.K., the company has said.
— With assistance by David Ramli
https://www.bloomberg.com/news/arti...ts-its-bicycles-to-cover-100-cities-this-year
TaiShang
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Mobike expands bike-sharing service to Singapore
(Xinhua) 20:11, March 21, 2017
SHANGHAI, March 21 (Xinhua) -- Mobike on Tuesday launched its bicycle-sharing service in Singapore, its first expansion overseas.
Bikes are mostly placed around the MRT stations and on university campuses. Users download the Mobike app and unlock the bikes by scanning the QR code on the frame.
China's leading bicycle-sharer said the standard rental fee is one Singapore dollar per half an hour. To celebrate the launch, it offers a 50 percent temporary discount.
Hu Weiwei, founder and president of the company, said Mobike will bring its bikes to more cities worldwide and make biking a more convenient and cheaper commute.
Florian Bohnert, head of international expansion at Mobike, said the bike-sharing had been welcomed by local residents, business partners and transport authorities during a trial period.
Bohnert said Mobike was happy to work with universities in Singapore to encourage more students and teachers to ride its bikes on campus.
Mobike has secured more than 300 million U.S. dollars of investment since January this year, with Singapore's Temasek being the newest investor.
Mobike's CEO Wang Xiaofeng said in February that the company would use the money to explore the global market and duplicate its business model elsewhere.
Mobike and its market rival ofo have revolutionized China's commuting market with their app-based bicycle sharing services.
Mobike has more than 1 million bicycles in 33 cities in China. A total of 400 million rides have been recorded since the company launched its first service in Shanghai 11 months ago.
(Xinhua) 20:11, March 21, 2017
SHANGHAI, March 21 (Xinhua) -- Mobike on Tuesday launched its bicycle-sharing service in Singapore, its first expansion overseas.
Bikes are mostly placed around the MRT stations and on university campuses. Users download the Mobike app and unlock the bikes by scanning the QR code on the frame.
China's leading bicycle-sharer said the standard rental fee is one Singapore dollar per half an hour. To celebrate the launch, it offers a 50 percent temporary discount.
Hu Weiwei, founder and president of the company, said Mobike will bring its bikes to more cities worldwide and make biking a more convenient and cheaper commute.
Florian Bohnert, head of international expansion at Mobike, said the bike-sharing had been welcomed by local residents, business partners and transport authorities during a trial period.
Bohnert said Mobike was happy to work with universities in Singapore to encourage more students and teachers to ride its bikes on campus.
Mobike has secured more than 300 million U.S. dollars of investment since January this year, with Singapore's Temasek being the newest investor.
Mobike's CEO Wang Xiaofeng said in February that the company would use the money to explore the global market and duplicate its business model elsewhere.
Mobike and its market rival ofo have revolutionized China's commuting market with their app-based bicycle sharing services.
Mobike has more than 1 million bicycles in 33 cities in China. A total of 400 million rides have been recorded since the company launched its first service in Shanghai 11 months ago.
TaiShang
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Report: China's sharing economy to grow 40% annually
China Daily, March 23, 2017
A group of bikers riding ofo bicycles pass by Chang'an Avenue, Beijing, on March 10, 2017. [Photo/China Daily]
China's sharing economy will maintain a high 40 percent annual growth rate in the coming years, according to estimates in a report released by the State Information Center.
The report, released by the center's sharing economy research branch, predicted the sharing economy's transaction volume will account for over 10 percent of the country's GDP by 2020, and that the ratio will continue to grow to roughly 20 percent by 2025.
China's fast-growing sharing economy will likely generate five to ten business giants in different sectors over the next decade, according to the report.
More individuals as well as more small and medium-sized enterprises will get involved in the sharing economy and benefit from it.
The report said the new mode of operation brought about by the sharing economy will penetrate various fields, including products, services, capital, knowledge and skills, as well as production capacity. Among them, the sharing of manufacturing capability will be a crucial area amid China's industrial upgrading boom.
"The first aspect is urbanization, which will boost demand for services as more people live in urban areas. The second aspect is an aging population, as elderly people could have more idle resources, skills and experience to share. The third aspect is the popularization of the sharing economy," said Yao Yudong, head of the People's Bank of China's Research Institute of Finance.
The State Council issued guidelines that by 2025 the government should promote manufacturing resources and internet platform docking for SMEs. The guidelines encouraged the government to establish a sharing economy platform to further optimize and integrate market information and production capacity.
At present, sharing within the manufacturing industry is still in its infancy, but is expected to witness explosive growth in the next few years, according to the report.
By 2020, service providers in the sharing economy are projected to exceed 100 million, with up to 20 million participating full time. The development of the sharing economy will be an effective measure to neutralize the job squeeze effect resulting from slowing economic growth and technological advancement.
Statistics from the report show that the transaction volume of China's sharing economy in 2016 reached 3.45 trillion yuan ($503 billion), up 103 percent on a year-on-year basis.
During the past year, 600 million people were involved in China's sharing economy, surging by 100 million from 2015. Among them, the number of service providers reached 60 million, 10 million more than the previous year. Sharing economy platforms created 5.85 million jobs, up 850,000 on a year-on-year basis.
"Despite the significant progress made in the sharing economy, the problems coming out should not be neglected," said Zhao Ying, a researcher at the Beijing-based Chinese Academy of Social Sciences.
Zhao said excessive administrative intervention, such as restrictions on use of users' residences and the vehicle access period for car-sharing services, could affect the growth of the sharing economy.
Some existing laws and regulations are no longer suitable for the new business model and therefore new rules should be enacted, he said.
***
Wow, 10% of the GDP by 2020 would mean (roughly) a 2 trillion USD value generated through the sharing economy.
China Daily, March 23, 2017
A group of bikers riding ofo bicycles pass by Chang'an Avenue, Beijing, on March 10, 2017. [Photo/China Daily]
China's sharing economy will maintain a high 40 percent annual growth rate in the coming years, according to estimates in a report released by the State Information Center.
The report, released by the center's sharing economy research branch, predicted the sharing economy's transaction volume will account for over 10 percent of the country's GDP by 2020, and that the ratio will continue to grow to roughly 20 percent by 2025.
China's fast-growing sharing economy will likely generate five to ten business giants in different sectors over the next decade, according to the report.
More individuals as well as more small and medium-sized enterprises will get involved in the sharing economy and benefit from it.
The report said the new mode of operation brought about by the sharing economy will penetrate various fields, including products, services, capital, knowledge and skills, as well as production capacity. Among them, the sharing of manufacturing capability will be a crucial area amid China's industrial upgrading boom.
"The first aspect is urbanization, which will boost demand for services as more people live in urban areas. The second aspect is an aging population, as elderly people could have more idle resources, skills and experience to share. The third aspect is the popularization of the sharing economy," said Yao Yudong, head of the People's Bank of China's Research Institute of Finance.
The State Council issued guidelines that by 2025 the government should promote manufacturing resources and internet platform docking for SMEs. The guidelines encouraged the government to establish a sharing economy platform to further optimize and integrate market information and production capacity.
At present, sharing within the manufacturing industry is still in its infancy, but is expected to witness explosive growth in the next few years, according to the report.
By 2020, service providers in the sharing economy are projected to exceed 100 million, with up to 20 million participating full time. The development of the sharing economy will be an effective measure to neutralize the job squeeze effect resulting from slowing economic growth and technological advancement.
Statistics from the report show that the transaction volume of China's sharing economy in 2016 reached 3.45 trillion yuan ($503 billion), up 103 percent on a year-on-year basis.
During the past year, 600 million people were involved in China's sharing economy, surging by 100 million from 2015. Among them, the number of service providers reached 60 million, 10 million more than the previous year. Sharing economy platforms created 5.85 million jobs, up 850,000 on a year-on-year basis.
"Despite the significant progress made in the sharing economy, the problems coming out should not be neglected," said Zhao Ying, a researcher at the Beijing-based Chinese Academy of Social Sciences.
Zhao said excessive administrative intervention, such as restrictions on use of users' residences and the vehicle access period for car-sharing services, could affect the growth of the sharing economy.
Some existing laws and regulations are no longer suitable for the new business model and therefore new rules should be enacted, he said.
***
Wow, 10% of the GDP by 2020 would mean (roughly) a 2 trillion USD value generated through the sharing economy.
TaiShang
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China releases draft bike-sharing regulations
Xinhua, March 24, 2017
Mobike and ofo shared bikes [File photo: qq.com]
The booming bike-sharing industry has led bicycle associations in China to produce a draft guideline Thursday to regulate the industry.
Led by bicycle associations in Shanghai and Tianjin, the draft solicits advice from China's major bicycle manufacturers and bike-sharing companies such as Mobike and ofo.
It comprises standards on the production, operation and maintenance of shared bikes, which has witnessed a soaring number of complaints recently.
"There were only eight such complaints in Shanghai in the first half of 2016, but the number rose to 176 in the second half. As of March this year, we have received more than 460 complaints," said Ning Hai, deputy secretary general of the Shanghai Consumer Council.
Random parking, high malfunction rate - though often caused by vandals, are at the top of the list.
In response, the draft demands companies hire one member of maintenance personnel for every 200 bikes.
More than three million shared bikes are on the streets of Chinese cities, which means at least 15,000 staff should be hired to support the industry.
The draft also specified a service life of three years for all such bikes and requested companies provide bike-sharing services open a 24-hour hotline to handle customer complaints.
The draft is now awaiting public opinion and is expected to take effect in May.
Xinhua, March 24, 2017
Mobike and ofo shared bikes [File photo: qq.com]
The booming bike-sharing industry has led bicycle associations in China to produce a draft guideline Thursday to regulate the industry.
Led by bicycle associations in Shanghai and Tianjin, the draft solicits advice from China's major bicycle manufacturers and bike-sharing companies such as Mobike and ofo.
It comprises standards on the production, operation and maintenance of shared bikes, which has witnessed a soaring number of complaints recently.
"There were only eight such complaints in Shanghai in the first half of 2016, but the number rose to 176 in the second half. As of March this year, we have received more than 460 complaints," said Ning Hai, deputy secretary general of the Shanghai Consumer Council.
Random parking, high malfunction rate - though often caused by vandals, are at the top of the list.
In response, the draft demands companies hire one member of maintenance personnel for every 200 bikes.
More than three million shared bikes are on the streets of Chinese cities, which means at least 15,000 staff should be hired to support the industry.
The draft also specified a service life of three years for all such bikes and requested companies provide bike-sharing services open a 24-hour hotline to handle customer complaints.
The draft is now awaiting public opinion and is expected to take effect in May.
ahojunk
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Bike-sharing services cry for improvement
By Zhu Wei (China Daily) 08:40, March 27, 2017
CAI MENG/CHINA DAILY
The craze for station-less bicycle-sharing services is rising at an increasing pace in China, with most service apps offering free deals to customers at the expense of deep-pocketed investors.
Mobike, one of the bike-sharing service providers, stopped charging riders from March 3, and has just extended the complimentary session to the weekend. Bluegogo, another bike-sharing company, still allows its users free rides for the first hour. The new player in town is quickly catching up by offering blue-painted bikes that resemble the GPS-enabled Mobike Lite models but weigh less, and come at no service cost. It reportedly has more than 5 million active users.
Teaming up with Sesame Credit, a credit rating agency that is part of the Ant Financial Services Group owned by e-commerce giant Alibaba, Ofo is allowing Shanghai users with a credit score of 650 or more to rent a bike without paying the 99 yuan ($14.4) mandatory deposit. It is widely seen as a move to trigger another round of "cash-burning" promotion in the sector, which only started to grow less than a year ago.
Their cut-throat competition to attract users and grab market shares is reminiscent of the tussle between car-hailing giants Uber China and Didi Chuxing, which saw the US company offering huge concessions when the subsidy battle came to a grinding halt.
That cities including Beijing and Shanghai are mulling drafting guidelines for the bike-sharing services should help cool down the competition. The Shanghai transport authority has reportedly asked six bike-sharing companies to stop adding new bicycles to their "fleet" in the city, while 10 streets of Xicheng district of Beijing are now off limits to sharing bikes.
Pouring subsidies into the market, which is a popular campaign tactic used by internet-based startups, can be effective in the short term but cannot last long. It can work exceedingly well in the early stages, because customers vote with their feet and are inclined to vouch for apps that offer the best bargain. Weeks of free rides and one-for-two top-up policies are no doubt a magnet for potential users.
But they depend heavily on the sustainability of financial support, as none of the service apps has released projections for their profitability in the face of rising maintenance costs. The withdrawal of investors could make a life-and-death difference to the bike-rental sector. And the exodus of customers would be even more disruptive once their end of the bargain is compromised.
In the car-hailing service sector, the merger between Didi and Uber was followed by skepticism over their de facto monopoly and tighter restrictions on ride-sharing drivers and vehicles, leading to a decline in the market share of the new ride-sharing juggernaut. The rise of rivals like the State-owned Beijing Shouqi Group also helped readjust the fares to reasonable levels and end the ruthless game of capital in the ride-hailing market.
As the bike-sharing service becomes increasingly homogenized, operators need to think beyond offering free rides and producing more bikes. Attracting decent, loyal users is definitely worth a try. Sesame Credit's data can offer a glimpse into users' financial capability, debt-paying ability and shopping preferences. And credit marking by the bike-hiring apps can help complete the whole picture.
Their combination bodes well for the efforts to build a nationwide credit system which citizens are subjected to. The idea of rewarding credible users and keeping unruly ones at bay may be a better way of keeping quality active customers than simply offering free rides. The money-pouring battle will end up hurting all bike-sharing service providers if they do not focus on improving services and insurance policies.
Zhu Wei is deputy director of the Communication Law Center at China University ofPolitical Science and Law. The article is an excerpt from his interview with China Daily'sCui Shoufeng.
By Zhu Wei (China Daily) 08:40, March 27, 2017
CAI MENG/CHINA DAILY
The craze for station-less bicycle-sharing services is rising at an increasing pace in China, with most service apps offering free deals to customers at the expense of deep-pocketed investors.
Mobike, one of the bike-sharing service providers, stopped charging riders from March 3, and has just extended the complimentary session to the weekend. Bluegogo, another bike-sharing company, still allows its users free rides for the first hour. The new player in town is quickly catching up by offering blue-painted bikes that resemble the GPS-enabled Mobike Lite models but weigh less, and come at no service cost. It reportedly has more than 5 million active users.
Teaming up with Sesame Credit, a credit rating agency that is part of the Ant Financial Services Group owned by e-commerce giant Alibaba, Ofo is allowing Shanghai users with a credit score of 650 or more to rent a bike without paying the 99 yuan ($14.4) mandatory deposit. It is widely seen as a move to trigger another round of "cash-burning" promotion in the sector, which only started to grow less than a year ago.
Their cut-throat competition to attract users and grab market shares is reminiscent of the tussle between car-hailing giants Uber China and Didi Chuxing, which saw the US company offering huge concessions when the subsidy battle came to a grinding halt.
That cities including Beijing and Shanghai are mulling drafting guidelines for the bike-sharing services should help cool down the competition. The Shanghai transport authority has reportedly asked six bike-sharing companies to stop adding new bicycles to their "fleet" in the city, while 10 streets of Xicheng district of Beijing are now off limits to sharing bikes.
Pouring subsidies into the market, which is a popular campaign tactic used by internet-based startups, can be effective in the short term but cannot last long. It can work exceedingly well in the early stages, because customers vote with their feet and are inclined to vouch for apps that offer the best bargain. Weeks of free rides and one-for-two top-up policies are no doubt a magnet for potential users.
But they depend heavily on the sustainability of financial support, as none of the service apps has released projections for their profitability in the face of rising maintenance costs. The withdrawal of investors could make a life-and-death difference to the bike-rental sector. And the exodus of customers would be even more disruptive once their end of the bargain is compromised.
In the car-hailing service sector, the merger between Didi and Uber was followed by skepticism over their de facto monopoly and tighter restrictions on ride-sharing drivers and vehicles, leading to a decline in the market share of the new ride-sharing juggernaut. The rise of rivals like the State-owned Beijing Shouqi Group also helped readjust the fares to reasonable levels and end the ruthless game of capital in the ride-hailing market.
As the bike-sharing service becomes increasingly homogenized, operators need to think beyond offering free rides and producing more bikes. Attracting decent, loyal users is definitely worth a try. Sesame Credit's data can offer a glimpse into users' financial capability, debt-paying ability and shopping preferences. And credit marking by the bike-hiring apps can help complete the whole picture.
Their combination bodes well for the efforts to build a nationwide credit system which citizens are subjected to. The idea of rewarding credible users and keeping unruly ones at bay may be a better way of keeping quality active customers than simply offering free rides. The money-pouring battle will end up hurting all bike-sharing service providers if they do not focus on improving services and insurance policies.
Zhu Wei is deputy director of the Communication Law Center at China University ofPolitical Science and Law. The article is an excerpt from his interview with China Daily'sCui Shoufeng.
adil_minhas
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Why are share bikes in most countries that have them so outlandish and ugly? Why can't they just have normal geared hybrids or even single gear fixies?
AndrewJin
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That is not for mountain biking.
It is for the last-kilometre journey from one's home to metro station, or from metro station to one's workplace.
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