Author: Cao Zhongxiong, Executive Director, New Economy Research Department
Editor’s note: Despite fierce industrial competition, various funds are still scrambling to occupy the sharing bike market, indicating the industry still has considerable potential for development. But in the future, the platforms will inevitably face reshuffle. Mobike and ofo might be left as the final two major competitors.
As capitals swarm into the sharing bike market, an ideal gateway to the Internet economy, the industry still has plenty of room for development. But there is no doubt that competition will be more and more intense.
Every bike sharing platform is implanted with more business models in an attempt to boost industry value; however, this move is unlikely to achieve great success. Sharing bike is a transport tool by nature, and it is unrealistic to let it stack more commercial values.
At the same time, sharing bikes are increasingly closely related to the Internet of Things. For example, Mobike and ofo are working to expand the application of Internet of Things technology. In fact, sharing bike itself is the Internet of Things. But it can only be a terminal. If new Internet of Things technologies are implanted in the future, more emphasis will be put on user experience.
With the entry of various capitals, competition of sharing bike platform is becoming more and more intense. Among them, ofo and Mobike are most favored by capital, topping the industry in market share and development scale. To some extent, the market capacity of sharing bikes is close to saturation in the first-tier cities. The number of bikes put to the market by various platforms has actually exceeded market demand. There is little chance for the emergence of new platforms. In the second- and third-tier cities on the Chinese mainland, the market space for sharing bikes will not be too large. In the process of fierce competition, there will be great possibility for merger and acquisitions. Small businesses will be phased out, and the final game will be held between Mobike and ofo.