Faulty business model throws Chinese bike sharing company off market
Chonqing-based Wukong Bikes started off functioning with 1200 bikes but six months later it realised that 90 percent of its bikes have gone missing.
The lack of GPS technology hurt them badly, the company lamented.
This is the first bankruptcy in China, a place billed as a bike sharing hub.
Major Chinese investors have shown interest in the booming bike sharing business, funding startups.
Mobike and Ofo are one of the main players in mainland China.
Both the companies are backed by market giants Alibaba and Xiaomi.
Wukong on the the other hand aimed as students, being much smaller in size in terms of business.
The company also incurred a loss from giving free rides to riders.
Founder Lei Houyi told Chinese media that the plan was devised in order to compete with other players, which backfired massively.
Bike sharing in China is done mainly via the use of apps.
A rider unlocks a bike using codes and later drops the bike anywhere they want after completing a ride.
Image: Internet Wallpapers
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