Chinese bike-sharing company shuts down after 90% of cycles go missing

The news:

Chinese bike-sharing startup Wukong Bike has shut down just five months after launching, with US$147,000 in losses.
The Chongqing-based company claims that it was forced to wrap up as it could locate only 10 percent of its bikes, with the remainder presumed lost or stolen.
Wukong, which operated bike-share programs in Chongqing city center and on Chongqing University’s campus, said in a statement that it would refund its customers any outstanding value in their accounts.

Why it matters:

China’s bike-sharing market is increasingly crowded. Tencent-backed Mobike and Alibaba-backed Ofo dominate, with a host of smaller players including YouonBike, UBike, and Bluebike also in competition.
Wukong founder Lei Houyi told NDTV that the company was unable to secure a quality supplier like those used by its larger competitors, and that the bicycles it sourced from smaller suppliers proved to be too easily damaged.
Wukong’s exit from the market demonstrates just how competitive it has become – and how important it is for entrants to ensure their vehicles are to a high standard.