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India Bike Sharing

Since its inception, the "Shared Bicycle", one of China's four new inventions, has seen rapid development in the midst of a dilemma of profitability models and a frantic capitalist hot pursuit. Many domestic and foreign entrepreneurs are not optimistic about the profit sharing bicycles, that is purely a suicide-style entrepreneurial ideas.

What is confirmed is that even by the end of 2017, China's shared bicycle companies still failed to find an appropriate profit model to meet the normal development of the enterprise. Even appeared, in addition to the first echelon of the giant and of worship, from the second echelon, a group of batches of shared bicycle companies crashing down, many even without warning "people go to the floor empty." Small blue bicycle bankruptcy, reported in the Consumer Association Kuqin fraud fund-raising for a time shared bicycle industry came to the cusp of public opinion, a large number of users began a deposit refund, it can be said that the dishonesty of the hat is already pressed to the shared bicycle industry On the head.

On the other hand, the pursuit of capital also makes many people can not understand why a non-profitable industry will attract such a large amount of capital, regardless of cost inbound investment. Due to the convenience of the people and government guidance, this kind of travel mode has been universally accepted in China. Even many cities have restored the city's slow traffic system due to the appearance of shared cycling. To a certain extent, the problem of traffic fuel pollution, which is extremely troublesome in China's cities, has also been somewhat alleviated. The green travel mode has been widely recognized.

However, a large number of shared bicycles occupy the urban public space resources, and many abandoned or damaged shared bicycles have become new urban rubbish. These problems are beginning to be criticized by the public.

The development of shared cycling in China seems to have entered a cycle of no cure. Many shared bicycle companies began to look overseas. As a big country with another 1.3 billion people, India undoubtedly opened up the next space for "illusion" to many enterprises.

On November 29, 2017, OFO announced its upcoming landing in BRIC India. To seamlessly connect with the Indian market, OFO will be the first to enter the four cities of Chennai, Bengaluru, Ahmedabad and Indore, and to deploy at well-known universities and neighborhoods such as the Indian Institute of Technology.

In mid-December 2017, Mountaineer Motorcycle announced that it will launch a bicycle sharing service in India. The company chose Gurgaon as its first stop and will later expand its operations to cities such as Bangalore, Delhi, Pune, Hyderabad, Chennai and Jaipur. According to the Times of India, the motorcycle has signed a Memorandum of Understanding with the DLF Foundation, a unit of Indian real estate giant. The first bike sharing project will be held on the Golf Course Road jointly developed by DLF and HUDA roll out.

India is obviously not comparable to China, the Netherlands or Germany in terms of infrastructure construction and current traffic conditions. Will sharing bicycles in the Indian market create miracles and break the current bottleneck in the industry?

Local companies quiet admission

A few weeks ago, Ola announced the launch of its bike sharing program, Ola Pedal, which is currently under trial operation at IIT Kanpur campus. In November, Zoomcar introduced PEDL, a vertical sharing of HSR layouts in Bangalore, and the company is considering rolling it out across the city and across the country.

Amit Gupta, co-founder of InMobi, launched the bike sharing platform "Yulu" last month. Mobycy also introduced a stationary bike sharing platform and raised $ 500,000 in seed money. A few weeks ago, wheelstreet also introduced a stationary bike sharing platform.

All in all, it seems that bike sharing in India is still new, and the sharing of bicycles, smart bicycles and bicycles without fixed piles has started to attract people's attention. Unpinned shared bicycles provide the best choice for people traveling within 100 meters of the bus, metro, train station or specific location. People can book the same as booking a car on Ola or Uber and use these shared bicycles.

In addition, it is reported that CharteredSpeed, a Ahmedabad-based shipping company, established a partnership with Nextbike, a German-based bicycle sharing startup, in September 2016 and plans to launch one in 100 cities in India Digital bike sharing platform.

In the case of Ola and Zoomcar, the bike is GPS-enabled and integrated with the application. "It allows customers to better plan routes for the departure and arrival locations they choose," one customer said.

Billions of dollars in the market?

According to akash Gupta, founder and CEO of Mobycy, there are billions of dollars in India's bike sharing market. "Today, businesses that venture into the world of shared bicycles in other countries now have a market cap of $ 2 billion to $ 3 billion, and in India, people are more and more interested in cycling amusement because of heavy pollution and heavy traffic," he said. Or fitness, this demand is huge in India. "

While India is attracting access to various types of shared bike platforms, the big question is whether it has such a large market in Europe or China. According to The Guardian, a shared bicycle company headquartered in Hangzhou is said to have 40 shared bicycles to be used every few seconds. A report by Recode shows that in the first quarter of 2017, the number of bicycle trips shared in China surpassed the number of on-demand trips in India during the same period.

Alibaba supported byo and Tencent support the worship is currently China's largest shared bike "Unicorn" company. Both companies raised more than $ 1 billion and basically monopolized more than 90% of the market share of bicycles in China. In contrast, Indian start-ups in this area have not yet attracted any heavyweight funding

Unique Indian market

Similar to the situation in China, cycling is not a new form of transportation in India. From bicycling to school children, to the local milkman, bicycles are widely used by the public.

However, with the progress of automobileization, the number of bicycles on the road in India decreased significantly. Now, the advent of smart bicycles or shared bicycles is expected to be a vehicle for the public "commute for the last mile," which will help control and reduce India's growing pollution.

Greg Caroran, co-founder and CEO of Zoomcar, said: "We think the ratio of population to motor vehicles in most cities has reached an unsustainable level, leading to road congestion, poor air quality and reduced productivity. Inside, the bike will replace most short-range motorized transport. "

According to media reports, the scale of the Indian bicycle market is 1.2 billion U.S. dollars and the current output is 15 million. To date, bicycles remain the most important means of transport in rural India. Sanjay Nath, managing partner at Blume Ventures, believes India is a unique market with no "one size fits all" solution to transportation.

"I estimate that about 10 million bicycles are sold in India each year, mainly for personal use, and now with the start-up of Shared Bicycle and the participation of giant companies, a vast network of bicycles will be created in India, Thus promoting the construction of Indian local infrastructure, the market size will be very impressive. "

However, this concept is still relatively new in terms of India and naturally it is also questionable. Jaspal Singh, a partner at Valoriser Transport Advisors, believes that as a result of infrastructure challenges, companies entering the market will not blindly expand in the cities, they will select certain areas and then try to control As Ola Pedal is doing at the IIT Kanpur campus.

Compared with other countries in the world, India has a unique traffic environment. Therefore, the promotion of India's shared cars and shared bicycles needs to be combined with local realities. This may create a brand new traffic mode. And for now, these two new types of traffic sharing modes of travel are booming in various countries in South Asia.

Infrastructure Challenges and Government Assistance

The lack of basic road and sidewalk infrastructure in India is indeed the first challenge but also an opportunity for a cyclical shared travel.

First, it hinders the very large-scale development of other markets. It's like a chicken and egg story - why would there be any demand without infrastructure? "Jaspal said that" even in China, there were no dedicated lanes at first, but as the demand increased, so did the infrastructure. "

The debate has begun in India, and local governments are also actively addressing the issue. As people pay more and more attention to physical infrastructure, businesses that enter the field will need to help cities build bike lanes and provide designated parking spaces.

To promote bike sharing and cycling as a means of transportation, cities like Mysuru, BHopal and Thane have been mapped out by the government.


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In addition, with the rapid development of the city and the opening of the "last mile" traffic connection, India's shared bicycle market will usher in a unique opportunity. India's market in the low-cost expansion can usher in a new pattern of shared cycling, let us wait and see.

Greg Moran said: "India's cycling market needs a huge scale in a short period of time, requiring the strong support of the public sector in India."

The Indian government promises to vigorously develop infrastructure in the coming three years, and the difference in transport facilities between cities will soon disappear. In fact, Chennai has released a tender document inviting all the major players in the industry to participate in the construction of infrastructure systems.

In contrast, in the Chinese market, the government does not interfere too much with the appearance of shared bicycles. Among the guidelines released last month, the State Department welcomed sharing bicycles as part of a "green city transport system," but urged local governments to "ensure the rational allocation of bicycles and avoid oversupply in some areas."

Can you make money in the Indian market?

Jaspal believes that the inventory model will be more effective in bicycle rental. Bikes used for rental have a GPS positioning system and can be turned on by scanning the QR code.

Consumer behavior, in terms of number of trips per day, is uncertain. Entrepreneurs are trying to understand these behaviors of consumers. For example, they know that people living in city centers may use bicycles more than once a day, and that office workers may only need twice a day to work.

Sanjay added that shared bike companies in India are expected to make money by using tolls, bicycle ads and usage data monetization.

"From what we have learned so far, the price for cycling may vary, for example, for 30 minutes at Rs 10, which means that for the end consumer, it costs less than Rs 2 per kilometer, just as Uber As Ola did, sharing a bike company may set up a city-level operations team to rebalance and regularly maintain the bike, "Sanjay said.

Mobycy said it now has 5,000 bikes to operate, hoping to increase that number to 50,000 in the next six months and expand its reach to 12 cities through partnerships with as many as 100 colleges and universities. Zoomcar current quote is 30 rupees 1 rupees.

Mobycy, on the other hand, has a revenue model based on each ride, partnership, and ad. If calculated on a monthly basis, the user pays 99 rupees a day for a two-hour ride. And users must sign up with their AadHaar logo and pay a refundable deposit of 999 rupees. For students, this margin is only 499 rupees.

Sanjay said: "It is too early to equate India and China to share the cycling market directly, and China has more effective law enforcement, top-down promotion and good infrastructure, and for India, This mode of transportation is currently required by the market and its unique basic conditions are the limited road space and the sensitivity of the public to the price of sharing the bicycle, although the particularity of the characteristics of Indian cities and people will increase the enterprises to solve these However, if companies can solve these problems well, they may actually become their own great advantages, especially in terms of actual implementation, local enterprises in India may be superior. "

In any case, the market for shared bicycles has been opened and many businesses and capital are competing. In the future, maybe the Indian market is nothing special, but perhaps the Indian market will give the world a surprise.


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