2 years ago the Chinese bicycle sharing app Mobike and Ofo populated London and the rest of the UK with thousands of yellow and orange bicycle.
Probably over 50% of the bikes have been vandalised or finish in British rivers. The financial result? Ofo shut its international operations and laid off thousands of staff, while Mobike is shrinking its operational zones in London and has withdrawn its service altogether in Manchester.
You will think that this operational disaster restrained new entrants (in green, orange and bright yellow) in the market….Quite the opposite….
The new trend is now electric bicycle and new colour and new brands are not around the city. Lime, ….(in green, orange and bright yellow colours).
How investors can be so stupid to waste millions of dollars (hundreds of millions of dollars in some case) in companies that have zero competitive advantage? A business model that consist in buying bike, colour them, thrown them in the street and wait for somebody to download the company house and use the bike?
The mystery continues, I am just worried that the range of potential colour for new bikes operators is running out….