Bike-share apps race for glory

Mobike and Ofo bicycles, like the ones in Shanghai, may be unlocked with an app and dropped off anywhere.[Photo/Agencies]

Last-mile problem

Once emblematic of China's masses, bikes lost ground as economic growth and urban sprawl fueled consumer demand for cars - the nation is now the world's largest automobile market.

Cities gridlocked by traffic and deteriorating air quality have prompted both government and consumers to search for greener solutions.

Industry evangelists say the new approach to bike sharing can help change that by solving the "first-mile/last-mile" problem that has long plagued urban planners: how to move commuters between their homes and public transit.

The inconvenience of traveling to a bus stop or metro station can be enough of a psychological barrier to push commuters toward taxis or car ownership.

"In places where the subway does not extend, where it's difficult to change from one kind of transport to another, it's so easy to get where you want to go with Mobike," said Hu Hong, 29, who pedals to her Shanghai real estate job.

Some Chinese cities started municipal bike-rental schemes years ago that allow users to pick up and drop off their wheels at designated stations, similar to hundreds of programs around the world.

Today's startups have removed that shackle, and the convenience of being able to drop off anywhere means a new generation of riders are now ubiquitous in cities such as Shanghai and Beijing.

Ofo, which launched in 2015 as a Peking University student project, claims 10 million users for its one million bright-yellow bikes in 33 cities. It plans to add 10-15 million bikes this year, chief operating officer Zhang Yanqi told AFP

Mobike shares a time-lapse graphic that, using its GPS system, tracks customer rides over a recent day in Shanghai.

Eager to cash in, Chinese and foreign investors have handed Mobike and Ofo hundreds of millions of dollars. The ramp-up recalls the battle between China ride-hailing leader Didi Chuxing and Uber, into which both poured billions of dollars before joining forces last year with Didi in command.

Didi is among Ofo's biggest investors, while Mobike CEO Wang is a former Uber exec.

Mobike's investors include Chinese internet giant Tencent and Taiwan tech-manufacturing powerhouse Foxconn, a major Apple supplier.