Chinese start-ups are finding it difficult to persuade citizens to properly engage with the sharing economy as their made-to-share items disappear from the streets, with two bike outfits forced out of business in short order.
Chongqing-based Wukong Bicycles went bust after just six months when pretty much all of its bikes were stolen. The company lost 90% of its 1,200 two-wheelers and didn’t have enough funding at hand to continue operations. Plus Beijing-based outfit 3Vbike has also gone under after its 1,000 bikes disappeared from four cities in Hebei and Fujian provinces within four months. The company had planned to make its business pay by slotting ads onto the fleet.
(However, bike-sharing leader Mobike goes from strength to strength, have just secured $600 million in funding from a finance round led by online giant Tencent.)
Another sharing start-up running into trouble is Sharing E Umbrella which has lost the 300,000 umbrellas it deployed in 11 cities starting in April. The company remains bullish, however, and still has plans to put 30 million umbrellas on the streets across China before the year-end.