Say that five time as fast as you can, “Burst Of The Chinese Bike Share Bubble”. Yep, it’s happening and probably not all that surprising. Bike Sharing has been on a rampage, and we’ve posted only a very few stories on it, something we’re interested in because personally getting around on a bike is easy and fun, but also because its helpful for the environment and may or may not be good for urban congestion, depending what side of the fence you’re on.
Fortune recently noted that the Chinese dockless bike company Bluegogo has more or less ceased operating. Bluegogo was the third largest dockless bikesharing startup with about 700,000 bikes in their fleet and 20 million users, staggering numbers for a company that was founded in November of 2016 and had gone through $70 million of venture money. The company has declared bankruptcy and the final tally of funds burned through is estimated around $120 million.
Clearly, this will not end the bike sharing industry in any way shape or form, but it does signal a much needed shake out where there have been simply way too many companies trying to jump on the bandwagon and over crowding the space. While in some locals it might not seem like a problem, in major metropolitan places the crowd of seemingly abandoned bikes randomly left on the street can be considered more than simply clutter, an over crowding of sidewalks. The recent battles in Florida and Washington DC are indicative of a tipping point here in the US, not just in China.
So, one well funded start up goes bust, we’ll see who the eventual winners will be.