Market Report China: Report of Bike-share Market in 2016

Editor: Susanne Hertenberger

The bike-share field is particularly thriving and award-winning in 2016, the year of depressed market. As the product of sharing economy, the bike rental service featured in the final one kilometer extends rapidly in first- and second-tier city by virtue of poured capital and confronts fierce competition, just as reproduction of marketing fighting of net taxi booking.

Seen from the download of bike-share app at this stage, Mobike and ofo yellow bike are far ahead in the market
Seen from the download of bike-share app at this stage, Mobike and ofo yellow bike are far ahead in the market
(Bild: MM China)

On December 27, "The Transport Commission of Shenzhen Municipality" publishes "Several Opinions on Encouraging and Standardizing Internet Bike (Exposure Draft)" and puts forward encourage and standard requirement for bike-share industry. The bike-share market is in initial stage now with frequent issues between products and users. Internal adjustment is carried out in the industry and meanwhile, the participation of more entrepreneurs also benefits to the industrial development.

The analyst team of Sootoo Institute analyzes and discusses current situation and developing trend of bike-share market according to network data and monitoring data published in the market combined with investigation and sampling of relative users.

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Rapidly emerging bike-share market

The bike-share market in China is still in the initial stage. The concept of bike-share springs up in 2015 and the capital and giant starts to lay out. The year of 2016 shall be defined as the beginning year of bike-share development. More and more bike-share entrepreneur teams gain financing in addition to the popularization of bike-share originally orientated in schools. The market fight is on the verge. From the point of market scale, the market size is predicted to be RMB 49 million in 2016, almost doubled than 2015. The bike-share market shall speed up continuously in the next year.

Bike-share user scale

As seen from user scale, the user number of bike-share is predicted to be 4.552 million in 2016, mainly based on undergraduate and young office workers and focusing on thickly populated city as first- and second- tier cities. The bike-share near school, public transportation and metro station offers the quickest route program of "final one kilometer". The bike-share is not only easy to use, but also benefits to green travel for the city, resulting in rapid popularization in the city.

Mobike and ofo lead in bike-share market

There are ten more enterprises participating in the market though the bike-share market is still in initial stage. Seen from the download of bike-share APP at this stage, Mobike and ofo yellow bike are far ahead in the market, just as DiDi and KuaiDi in net taxi booking market at initial stage. Mobike and ofo gain download of 3,664,900 and 3,471,000 separately, equally matched. While the download of Youon ranking the third is just 390,000. While the market pattern may still be changed in the future, there shall be a new round of market action after financing of other brands of bike-share.