Analysis of Mobike bike share

For this weeks blog, I am going to a very popular Chinese bike-share, Mobike.

Goal:

Their goal is to make an easy, cheap and eco-friendly way to travel within cities. It is also provided as a last-mile solution, from the bus stop to the desired destination.

Customer profile:

Mobike targets those who use the public transportation system for the last-mile solution. Just like LimeBike, they also target millennials who want a more convenient way of travelling.

Tech:

Mobike uses an inbuilt GPS tracking system, an app and QR codes to scan the bike and ID it. They also gather some user data to improve their system. They do this through 3G connectivity installed on the bike. They also have a smart lock to lock the bikes in place.

The service has included a credit system. Good user behavior, like inviting more users or reporting broken bikes, accumulates credits, while bad behavior, like breaking bikes or vandalism, removes credits. The level of credit points affect the rate paid to the bike-share; low credits pay more. Psychologically, a rewards system might be great for the users, a subtle incentive for more customers and for good behavior.

Location:

Mobike does not use nodes/stations to park the bikes. They can be picked up and left anywhere, offering greater flexibility.

Competition:

There is also a crowded market for bike-shares in China. There are Ofo and Forever Bike shares, which a private competitors. Then there are also government/municipal bike shares, like the one in Hangzhou. There are also issues of towing unregistered bikes. While China is a huge country, Mobike, Ofo, and Forever Bikes are there in most major cities.

Partners:

Mobike has not been too open with their partners.

Product design:

Their bikes are the company’s own design.

Pricing:

An initial deposit is another way to ensure good behavior of the user. The initial deposit is $59, $1/30 mins, begins once the bike is unlocked. The timer resets every time the bike is locked.

Costs:

All the tech mentioned can cost the company a lot to both buy and maintain. Manufacturing and assembling the bike parts also costs quite a lot. They do cut some costs by not having a docking station for the bikes, leaving them to the public to take care of them.

GPS, 3G connectivity, smart locks, etc. can add considerably to the costs. Having no docking station might save some money.

Opinion:

Mobike seems to rely on technology as a differentiator in the bike-share market. It goes for ease of access and seamless user interaction through the app: simply scanning and biking. I like that about Mobike, its focus on user experience. While that is great, there is always the issue of technology maintenance, theft and vandalism that is not solved, which could add to the costs for Bangalore.

Next week, I will write about why we need a bike share system for Bangalore, and the factors that can affect bike sharing in the city.