The bike-sharing industry sees a spike now contingency measures allow more people to hit the road in major cities, but business analist Ben Cavender expects the positive news to be short-lived, he tells Abacus News. “In the longer term, it will still be difficult for the industry to bounce back and grow,” says Cavender.
Abacus News:
The industry is still bruised overall, having suffered a major blow during the epidemic with most people confining themselves at home. The reprieve might not last, either. Some think the recent boost doesn’t mean that users will stick with bike-sharing once things go back to normal.
“We’re likely to continue to see a short term bump in use of bike-sharing,” says Ben Cavender, analyst with China Market Research Group. “But longer term, it will still be difficult for the industry to bounce back and grow.”
Cavender said that when the public health situation stabilizes and returns to normal, consumers will shift back to normal transportation habits.
China’s bike-share sector saw rapid expansion in 2017 and 2018, when startups crammed Chinese cities with colorful bikes, eventually leading to a wave of bankruptcies and “bike graveyards.”
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