TAIPEI (Taiwan News) -- Despite optimistic forecasts for the growth in the dockless bike-sharing market in China, a company in Chongqing has already gone out of business scarcely five months since it started because 90 percent of its bikes have gone missing.
Wukong Bike, the name of which harkens to the mischievous Monkey King, was perhaps too aptly named, as 90 percent of its fleet of 1,200 bikes have been apparently been nabbed by naughty users, causing the loss of millions of Chinese yuan and the collapse of the fledgling company.
The Paper reports that the company's supplier Chongqing Zhanguo (Warring States) Technology Co., Ltd, announced that as of this month, the bike-sharing firm will cease its services. Wukong Bike's founder Lei Houyi (雷厚義) lamented that if "they can't win" they will have to quit.
Of the companies fleet of 1,200 bikes, half were located on university campuses, while the rest were in urban areas. Although the bikes were fitted with electronic locks which are controlled with a special app, 90 percent disappeared, leaving only about 10 percent still accounted for.
In addition to the loss of the bicycles, another problem according to Lei was the lack of a major company to support the maintenance of the bikes. The small company that Wukong worked with could not keep up with demand. They were not able to reach the top of the supply chain like rivals Mobike and ofo, said Lei.
During its five months of operation, the company served 10,000 customers, averaging 3-4 for riders per bike per day.
According to The Paper, this was the first bike-sharing company in China to announce bankruptcy.