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Shared bikes, innovative paradigm ushered by Chinese companies

By Zhao Manfeng | chinadaily.com.cn | Updated: 2017-04-18 15:29

Shared bikes, innovative paradigm ushered by Chinese companies

Dai Wei, founder of the cycle-sharing startup ofo [Photo provided to China Daily website]

The bike-sharing industry has caused many changes for commuters and users’ lifestyles, Dai Wei, founder of the cycle-sharing startup, ofo, said at the 3rd China and Globalization Roundtable Forum. The following is an excerpt from his speech:

It’s out of our expectations that this sharing industry would explode at such a rapid pace within two years. But it’s predictable that no one will buy a bike three years later and bikes might be the first major item for a private consumer to give up purchasing. The business model for the bicycle industry will change to a three-party chain - bike manufacturers will sell their products to bike-sharing operators instead of single bike users, who would then only need to pay the using fee to sharing operators.

The business paradigm now has expanded overseas and thus we could say this is the first time for Chinese internet companies to be a pioneer in a new tide of innovation, which is defined as solutions towards challenges and problems.

Such a business model of shared use and shared ownership will benefit all sides, from consumers, manufacturers, to the government. In the short term, bike-sharing companies will gain more partnerships with traditional bike manufacturers, increasing their revenue and profits. In the long term, bike sharing startups will still benefit all of society as more people choose to ride an environmentally-friendly bike instead of other commuting ways.

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