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Beijing's largest bike rental shop is closing

(www.ttav89.com)
Updated: 2010-11-09 15:43

Thousands of orange-colored bicycles have disappeared this winter since the recent close of Fangzhou Bicycle-Lending Co.

"Speaking more accurately, Fangzhou didn't go bankrupt, but disbanded," said Li Min, a high-level manager of Fangzhou. Li resigned last month along with his colleagues, most of whom belong to the company's management ranks.

A sign says bikes are for sale at a closed bike rental shop.[Photo/www.sina.com]

"The business has not made a profit since it was established in 2008,” Li said. “The company experienced a loss of over 10 million yuan in two years".

Established in August 2008, Fangzhou was the largest bike rental service in Beijing. A total of 1,000 bikes could be borrowed and returned at more than 200 lending outlets across the Chinese capital.

"The biggest problem doesn't mainly lie in capital," Li said. "We lack of policy support from the government."

Li said he believed the company would have operated at a profit if it had been allowed to operate an advertising business. "Advertisements could be posted on the bike frame, in parking shed, and other related places," he said, but added that the company received no authorization to allow advertising.

The company already has sold nearly 7,000 of its bicycles to local residents at low prices ranging from 20 yuan to 50 yuan, Li said.

Beijing public transportation officials issued a plan in August to make public bikes available for lending near subway lines by the end of this year. It will be the first time a public bike-lending service has been offered by a local government. Previously, service providers were mostly private enterprises.

Spokespersons for two other bike rental companies in Beijing, Lantu Suobei and Yongjiu, said Fangzhou's closing will not influence their normal operations. But they agreed with Li that more government support is needed.