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Compared to I-Bike Media, Fortune Bicycle Rental's business seems to have stalled. At some of the company's stands within the 3rd Ring Road, there are just five or six dust-covered and chain-locked bicycles outside news kiosks, and information about actually renting one is hard to come by.
"The company has neither discussed with us about that, nor given us the keys to the bicycles," said a kiosk worker near Capital Indoor Stadium.
A nascent business
Beijing's bicycle rental companies face harsh daily competition to eke out a profit. Although Wang Yong, General Manager of Bicycle Rental Co. Ltd., says that he just wants to offer more convenience to people and contribute to a cleaner city environment, the company's investment of 30 million yuan ($4.4 million) is surely a matter of concern.
"Our profits come only from selling advertisements on the rental bicycles," said Li of I-Bike Media. "I think this is the main way for the bicycle rental business to make profits."
Wang, on the other hand, sees profits coming from government investment. "Apart from the recognition of the customers and our own efforts, the support from the government is also very important to us," he said. "The Beijing Municipal Government invests several billion yuan on public transportation construction every year, but public bicycles are not included in that budget."
Zhang Tieliang, sees promise in the business' future. "As a big city with so many people riding bicycles, the rental business will develop fast. It just needs some time for more people to accept it," he said.
I-Bike's Li said the business needs to be regulated. "Besides the chained bicycle rental stands run by different companies, there are also many individual rental stations in scenic spots. What's more, each has its own rules, which makes the market a bit chaotic. It might be a good way to coordinate these companies and set a common rule," he said.
Bicycle Rental Market In Hangzhou
On May 1, 2008, Hangzhou, capital of east China's Zhejiang Province, included bicycle rentals in the public transportation system. Now, bicycles have become the most convenient form of transport for Hangzhou residents. Data from the Hangzhou Bureau of Transportation show that on average each bicycle gets rented five times a day.
People aged 16 to 70 can use their Hangzhou public transportation card or ID card to rent bicycles at stands. The first hour is free; the price is 1 yuan ($0.15) between one and two hours; 2 yuan ($0.3) between two and three hours; and 3 yuan ($0.44) per hour for more than three hours.
For many residents, it is a very good alternative to bus trips, because the distance from home to office is usually within a one-hour ride. That commuting time means they spend no money to get to and from work, and they also get the benefit of surpassing traffic jams.
In April 2008, the Hangzhou Public Transport Cooperation and Hangzhou Public Traffic Advertising Co. invested 5 million yuan ($735,000) to organize the state-owned Hangzhou Public Bicycle Service Development Co. Ltd. They also successfully developed China's first public bicycle rental service information management system and a bicycle locking device. The Hangzhou Municipal Government has played a very important role in sponsoring, promoting and supervising the business.
In the months after the service started, managers have upgraded the system based on citizen suggestions, including adding more 24-hour bicycle-return stands and bicycles with baby seats. There are no records of bicycles stolen since the business began.
According to Wang Guoping, Secretary of the Hangzhou Municipal Party Committee, the community will increase the number of rental stands to 2,000 by the end of 2009 and offer 50,000 bicycles. By that time, he expects Hangzhou to have rental stands every 100 meters.
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