CHINESE SHARED BIKES HIT SOUTHEAST ASIAN STREETS

By Zhang Lijuan

Innovative and hugely popular, China’s Mobike and Ofo have launched operations in three Southeast Asian countries

CHINESE SHARED BIKES HIT SOUTHEAST ASIAN STREETS

By Zhang Lijuan

Innovative and hugely popular, China’s Mobike and Ofo have launched operations in three Southeast Asian countries

Ofo bikes now available in Singapore.

The last mile problem is a common issue faced by many countries in the development of public transit. It mainly refers to the difficulty of getting people from a transportation hub to their final destination.The bicycle-sharing systems currently popular across Chinese cities seem to have provided a solution. With the arrival of dockless bike-sharing systems, fleets of privately operated colorful bicycles have flooded the streets of many cities across China, just three years after such companies first emerged. Competitive Chinese bike-sharing companies have also headed overseas, and they have chosen Southeast Asian countries like Singapore,Malaysia and Thailand as some of their first destinations.

Chinese dockless bike sharing companies first launched their overseas operations in late 2016.As a developed economy and a key player on the Southeast Asian market, Singapore became a major target country for the global expansion of Mobike and Ofo, the two largest dockless bike-sharing operators based in China. Ofo entered Singapore in December 2016, followed by Mobike on March 21, 2017.

On Aug. 1 this year, Ofo brought its first 6,000 bikes to Thailand. A month later Mobike began operating in Bangkok.The two companies launched operations in Malaysia on Aug.3 and Sept. 6 respectively. Their entry into these three Southeast Asian countries marked a milestone on the journeys of Chinese bike-sharing companies abroad.

Localized Services

Chinese bike-sharing systems enjoy a certain competitive edge in Southeast Asia, but they still have to overcome a lot of differences in climate,culture and customer behavior,as well as laws and regulations.Therefore, it is essential for Chinese shared bike operators to provide quality services in light of local conditions.

According to Chris Martin,Mobike’s head of international expansion, to ensure its success in Singapore, the company has adopted a strategy of providing localized bike-sharing services through partnerships with local governments, higher education institutions and businesses. So far, Mobike has carried out stable and efficient operations in its first overseas location.

“Now the government of Singapore is implementing a National Cycling Plan, aimed at building an island-wide cycling path network of 360 kilometers,”Martin said. “Construction of a new expressway named the North-South Corridor is also under way, which is an integrated transport corridor featuring cycling trunk routes linking towns with transit hubs and public facilities. In addition to cycling lanes, the government also supports bicycle-sharing systems. We have maintained close communication with the local government to stay informed about related issues.”

When asked about the challenges of operating in Southeast Asia, Ofo’s global public relations lead Angela Cai pointed out that Singapore,Malaysia and Thailand differ from one another in terms of both transportation and cultural environment. For example, Ofo encountered a series of problems in Bangkok, including narrow roads, backward infrastructure and cycling lanes occupied for other uses, thus communication with the local government was needed to find a solution.Therefore, Chinese companies aspiring for global expansion should take a flexible approach in line with local conditions in target locations to overcome regional differences.

A Mobike bicycle.

Chinese dockless bike sharing companies first launched their overseas operations in late 2016. As a developed economy and a key player on the Southeast Asian market,Singapore became a major target country for the global expansion of Mobike and Ofo,the two largest dockless bikesharing operators based in China.Ofo entered Singapore in December 2016,followed by Mobike on March 21, 2017.

Technological Solutions

With a population of nearly 70 million, Thailand is in urgent need of solutions to the last mile problem, as traffic congestion has become increasingly severe,particularly in popular tourist cities like Bangkok and Chiang Mai. Malaysia’s Land Public Transport Master Plan has set out the vision of achieving a safe, reliable and sustainable land public transport system.As a world-renowned resort,Malacca City has seen surging demand for transport during the peak tourism season in the fall.Last mile issues in Singapore,Malaysia and Thailand have different root causes, but the arrival of Chinese bike-sharing systems has played a positive role in tackling such problems in these three countries.

Utilizing the mobile internet and Internet of Things (IoT)technology in combination with smartphones, Chinese venturecapital financed companies have pioneered the development of dockless bike-sharing systems in which users don’t have to return the bike to a fixed location.Customers just scan a QR code on the bicycle to unlock it and pay for their use via bike-sharing applications. Dockless shared bikes have greatly improved the efficiency of the sharing economy.Bike-sharing start-ups like Mobike and Ofo exemplify Chinese originality in both product development and business models. Their global expansion also showcases the upgrading of China’s capacity from“Made in China” to “Intelligent Manufacturing in China”.

The smart lock independently developed by Mobike has given birth to the world’s first smart dockless bike-sharing system featuring mobile IoT technology.The lock is equipped with six modules, including a data communication module, a satellite positioning module,a lock/unlock module, a motion alert module, a user interaction module and a power management module. Controlled by a Micro Controller Unit through embedded software,these modules are designed for functions such as remote unlocking, precise positioning,cloud communication and low power consumption. Mobike has also made constant efforts to optimize the positioning performance of its smart lock.Now there are three such systems available on its products,including the BeiDou Navigation Satellite System, Global Positioning System and Global Navigation Satellite System.The company has reduced its positioning error to less than one meter by using the Differential Global Positioning System.

Through cooperation with multinationals such as Huawei,China Telecom and NXP Semiconductors, Ofo has created a closed loop of IoT featuring technologies of the Narrow Band Internet of Things and Near Field Communication. User data is collected on Ofo’s big data platform and analyzed with artificial intelligence. It helps forecast customer demand and optimize bicycle scheduling,thereby enhancing operational efficiency.

According to Secretary-General of the China Chamber of International Commerce Yu Jianlong, China is now a global leader in the development of bike-sharing systems. As Ofo and Mobike speed up their entry into the international market with the help of cutting-edge technologies, more countries around the world will enjoy“Intelligent Manufacturing in China” in the future.