Bike-share firm Mobike’s CEO calls for clearer rules to help sharing-economy businesses in China
Davis Wang says that companies like his have enormous numbers of customers, but can struggle with a lack of a clear regulatory framework
The chief executive of Chinese shared bicycle giant Mobike urged the country’s regulators to work with it to clarify regulations, as so-called sharing-economy businesses become increasingly popular in China but run into bureaucratic hurdles and criticism.
Intense competition and price wars have already killed off four top players in China’s shared bike market so far this year, while their services – users pick up and leave bikes anywhere at any time by scanning codes with their smartphones – have been the target of frequent complaints about bicycles being dumped on street corners or in parks, or blocking roads.
Davis Wang, CEO and co-founder of Mobike, said his company was a growing presence in China’s cities and needed a clear framework in which to operate.
“More than 2 million people use Mobike in Guangzhou every day – that is almost one-third of the volume carried by the subway and three times the volume carried by taxis. We are a big platform with a huge number of users, and we are easily attacked when problems emerge,” he said on the sidelines of the Fortune Global Forum gathering of political and business leaders in the southern city of Guangzhou on Thursday.
“We have a responsibility to work out the problems with the government together,” Wang said.
Mobike was valued around US$3 billion after its last series of fundraising last year. It and rival Ofo dominate China’s bike-sharing market, with a combined share of around 95 per cent.