China's Mobike eyes Singapore launch

[AQ.]

Just saw an OFO abandoned near a rubbish chute with all the rubber casings cut open - apparently blokes are now stripping out the metallic cables/wires to sell.

[weijian]

I thought the last part was pretty revealing, and brings some understanding about why these Chinese bike sharing startups are getting all the cash, despite the fact that it would only be a losing business. While i don't buy in the argument that these companies will be able to profitably monetize the data it can collect from its users (location/travel tastes), it makes sense for backers who want to integrate bike sharing function into their own ecosystem (Tencent backed Mobike uses WeChat Pay, and Ofo's promotions for those who have good AntFinancial ratings). It definitely make sense to inject (mindless) money in because the end goal is not profit from these bike sharing operations, but to increase the stickyness and the value proposition of their own products/ecosystem.

The startups are entangled in a proxy war between Tencent and Ant Financial, China's largest online financial services firm. At 20 million rides a day, Ofo is becoming a key channel to promote Ant's payment services, such as Alipay. It also linked users to its Sesame Credit system, so those with scores above certain levels can use its bikes without putting in deposits. In the other corner, Tencent's WeChat now allows access to Mobikes via its Mini Programs platform, sparing them the trouble of downloading the app. From there, users pay for their rides with WeChat Pay.

Ofo said to seek US$3b valuation in China funding wars

[HONG KONG] Chinese bike-rental startup Ofo is aiming to raise new funds at a valuation of about US$3 billion, people familiar with the deal say, further inflaming an already pitched competition for capital by startups backed by the country's largest technology firms.

http://www.businesstimes.com.sg/transpor...nding-wars

[Big Toe]

There are cheaper ways to gather data and integrate users into their own payment/e commerce ecosystem.
Giving away bikes(essentially that's what they do) is an expensive way to do so. Proper maintenance and redistribution cost will make it even more expensive and I highly doubt they'll do much of that. Currently it's a pump and dump system.

[weijian]

I am definitely seeing a visible difference around the neighbourhood, with many colorful bikes around.

On another note, I work in a light industrial area and there are many foreign workers who own bikes, they don't take these rental bikes. It could be sunken costs in general for them for 1 of the largest bike-using community in SG (the foreign workers). But they would have a lower entry barrier in owning their own bike anyways, rather than spending close to 1sgd/day (no promotions) to rent. These bikes are just going to attract casual users than anything.

Bike-sharing war in S'pore goes up a gear

Ofo raises US$700m in Series E; Mobike unveils new bikes; oBike says it has local advantage

COMPETITION is hotting up among bike-sharing companies in Singapore - in a manner reminiscent of the extravagant war among ride-sharing apps here in their heyday, and prompting fresh concerns about the sustainability of the sharing economy.

Bike-sharing, a scheme popularised in China in the last few years, makes available bikes for shared use to individuals on a very short-term basis. It allows them to borrow a bike from point A and return it at point B, usually without the use of a docking station and at an affordable rate.

http://www.businesstimes.com.sg/transpor...-up-a-gear

[specuvestor]

http://www.straitstimes.com/asia/east-as...tor=SEC-23

As discussed, theft is serious problem. OTOH it's not an issue with Uber. The model is drastically different. I think sharing economy is picking up, but rental disguising as sharing does not

[weijian]

My Visit to Mobike Headquarters and What I Learned From Founder Hu Weiwei

In late July, I did a tour of Mobike’s headquarters in Beijing – and I had a fascinating talk with founder Hu Weiwei and VP of International Expansion Chris Martin,. It was a fantastic experience and I left with a much better appreciation of the rocketship ride the company has been on. I am writing up three (more serious) business articles on the bike-sharing business from this experience. But here is a summary of my trip – and then five big things I learned.

http://jefftowson.com/2017/08/my-visit-t...pt-1-of-2/

[Duskerdawn]

My Visit to Mobike Headquarters and What I Learned From Founder Hu Weiwei

In late July, I did a tour of Mobike’s headquarters in Beijing – and I had a fascinating talk with founder Hu Weiwei and VP of International Expansion Chris Martin,. It was a fantastic experience and I left with a much better appreciation of the rocketship ride the company has been on. I am writing up three (more serious) business articles on the bike-sharing business from this experience. But here is a summary of my trip – and then five big things I learned.

http://jefftowson.com/2017/08/my-visit-t...pt-1-of-2/

Interesting article that brings more clarity to the inner operations, strategy and direction of Mobike. What it lacks is specific details, answers to major issues highlighted and numbers.

https://ecf.com/resources/cycling-facts-and-figures 


If you look at the share of users of bicycles in EU capitals, it ranges from 0% to 35% (highest being in Copenhagen). Interestingly, while in university, I did my exchange in Copenhagen Business School and can say that I am fairly aware of what it takes for a country to have such a high usage of bicycles as its main transportation. It needs roads and infrastructure to be built specifically for cycling; public transportation that allows the transportation of bicycles; Good weather for cycling.

Additionally, having personally experienced cycling in Denmark. I understand the a small part of the culture of cycling there. Your bicycle is a part of your personality there and people put in alot of care and effort into their bicycles. The rental of bicycles is not completely in sync with the culture there and would not be extremely successful as you would think. (Renting of bicycles kind of commodifies it into just a mode of transport)

Hence, I do not completely agree with the idea of the "smart" vs "dumb" bike argument presented by the article. As there is more to a bicycle then it just being a mode of transport. Bicycle activists out there would agree that there is a difference between riding a good bicycle and a crappy mass-produced bicycle. And if you were to cycle to work everyday, travelling over 5-10km a day, you would definitely want to invest in a good bicycle. Just abit of food for thought.

[weijian]

Hence, I do not completely agree with the idea of the "smart" vs "dumb" bike argument presented by the article. As there is more to a bicycle then it just being a mode of transport. Bicycle activists out there would agree that there is a difference between riding a good bicycle and a crappy mass-produced bicycle. And if you were to cycle to work everyday, travelling over 5-10km a day, you would definitely want to invest in a good bicycle. Just abit of food for thought.

I used to think that way, until Mobike and co proved me wrong (you could refer to my first post as i was the thread starter).

If these bike pseudo share-rental companies were just about "more to a bicycle", they wouldn't have expanded as fast as they had. As the author had suggested - their proliferation has led people to realize how inconvenience it was to own a bike (you may have to carry it across inaccessible areas like stairs, think of where to store it, guard against theft and trouble with the occasional flat tire/broken chain). Improving the accessibility and the convenience has expanded the existing market of bike users materially.

I still don't believe that they are going to make PATAMI sort of money, but i suggest their final aim is not to make this kind of money anyways. When the punch bowl is eventually taken away (ie. the sea of venture capital dries up), they have to make sure they already have the scale to make themselves part of the entire IoT ecosystem.

[weijian]

Chinese Bike Sharing Firms Lose Revenue Stream As Beijing Bans Advertisements

In a blow to China’s cash-burning bike sharing companies, the city of Beijing has banned commercial advertisement on bicycles deployed in the city, according to regulatory guidance released last week. The move is a setback for China’s numerous bike sharing start-ups, including market leaders Mobike and ofo, as the companies and their investors had looked to commercial advertisement as a source of much-needed revenue. Both Mobike and ofo have said they will comply with the new regulations.

To attract customers, bike sharing companies charge very low rental fees. Mobike charges riders RMB1 (US$0.15) per half hour, while ofo charges RMB1 per hour. And last month, the two companies stopped requiring deposit fees from riders after a number of smaller players eliminated deposits.

https://www.chinamoneynetwork.com/2017/0...ing-cycles

[weijian]

Burn cash - checked. No profit - checked. Bike dumping issue - checked. Selling your company before you need to folk out cash again to replace all the bikes - checked.

How a crazy idea led this former journalist to US$3b buyout of Mobike

[HONG KONG] It seemed like a nutty idea at the time - and it still does.

Three years ago, Hu Weiwei and her co-founders decided to start a business letting people share bicycles for pennies per ride. People could hop on for a quick ride to the subway or supermarket, then leave the bike right out front without the hassle of finding a parking rack.

In a shocker for most of the rest of the world, the Chinese business boomed and this week the former journalist and her cohorts agreed to sell Mobike in a deal that values the startup at US$3.4 billion.

Food delivery giant Meituan Dianping is acquiring the company. The founders and investors pocket more than US$1 billion in cash and Ms Hu - who's turning 36 this year - and her team get to keep running the business.

https://www.businesstimes.com.sg/transpo...-of-mobike