- Chinese bike-sharing #startup Wukong Bike has shut down just five months after launching, with US$147,000 in losses.
- The Chongqing-based company claims that it was forced to wrap up as it could locate only 10 percent of its bikes, with the remainder presumed lost or stolen.
- Wukong, which operated bike-share programs in Chongqing city center and on Chongqing University’s campus, said in a statement that it would refund its customers any outstanding value in their accounts.
Why it matters:
- China’s bike-sharing market is increasingly crowded. Tencent-backed Mobike and Alibaba-backed Ofo dominate, with a host of smaller players including YouonBike, UBike, and Bluebike also in competition.
- Wukong founder Lei Houyi told NDTV that the company was unable to secure a quality supplier like those used by its larger competitors, and that the bicycles it sourced from smaller suppliers proved to be too easily damaged.
- Wukong’s exit from the market demonstrates just how competitive it has become – and how important it is for entrants to ensure their vehicles are to a high standard.
Converted from Chinese yuan. Rate: US$1 = RMB 6.83.
Source: The Straits Times.