Volume XI • Issue 33 (September 2018) JMFS pp. 25–42 Journal of Management Warsaw School of Economics and Financial Sciences Collegium of Management and Finance Tomasz Bieliński, Agnieszka Ważna Faculty of Economics University of Gdańsk New Generation of Bike-Sharing Systems in China: Lessons for European Cities ABSTRACT Rising mobility of societies and the urban sprawl cause the need to shape passengers’ behaviour accordingly. For urbanised areas, the biggest challenge is to overcome the problem of dominant private cars usage. Bike-sharing systems are considered to be a successful tool for the popularisation of alternative ways of travelling. Recently Chinese companies have developed new solutions to bike-sharing systems that proved to be successful in China and could be implemented in Europe. However, their implementation will be associated with challenges for municipal authorities and companies conducting the business. The aim of the paper is to identify major advantages and challenges resulting from the implementation of the Chinese solutions in Europe or expansion of bike-sharing companies to Europe. The scientific method used in the paper is the case study of the Chinese bike-sharing market with the special focus on market leaders Mobike and Ofo. Despite existing obstacles, it is possible to succeed in introducing the new generation of bike-sharing systems in Europe. As Chinese enterprises have already entered the European market, it is crucial to make policy makers aware of the obstructions. Keywords: sustainable transportation, urban transport, bicycles, public bikes, Ofo, Mobike, envi- ronmentally friendly transport, dockless bikes, passenger transport innovation JEL Classification Codes: R41, R42 26 Tomasz Bieliński, Agnieszka Ważna Introduction Major challenges of the EU transport policy are to a great extent linked with sustainable development. Its basic aims concern (among others) reducing: air pollution, traffic congestion and oil dependency of transport. A more or less conscious choice of means of transport has an impact on the shape of urban transport systems. The role of ecological modes of trans- port in cities, such as bicycles, is currently particularly worth emphasizing. A tool for urban transport policy that encourages passengers to use bicycles is not only the creation of basic infrastructure, but also the improvement of bike-sharing systems. European countries and municipal authorities have been developing bike-sharing systems for decades. Although China historically had been one of the leading countries in its usage of bicycles for transportation, it has only recently implemented bike-sharing systems. Unlike European corporations, Chinese bike-sharing companies operate without docking stations, using GPS systems and mobile applications instead. Moreover, Chinese companies operate using private financing, whereas European ones are largely dependent on public funds. Inter- estingly, the leading players on the Chinese bike-sharing market are introducing their services to the biggest European cities. Therefore, a valid question is which Chinese technologies and business strategies could be implemented there. The aim of this paper is to show advantages and challenges related to Chinese bike-sharing schemes, and to discuss selected solutions implemented in the bike-sharing systems in China to help improve European ones and make them prepared for the entrance of the new type of service. The chosen methodology is the case study of the Chinese market, with a particu- lar focus on the industry leaders, Mobike and Ofo, which have secured a combined 95% of the Chinese bike-sharing market [T. Li, 2017]. Moreover, bankruptcies of several Chinese bike-sharing companies raise questions about sustainability of the whole sector and business model, which, as a consequence, has motivated the authors to analyse the problem. Literature review on bike-sharing systems Globalisation of the economy has its basics in transport infrastructure and transport ser- vices that underpin trade, giving an opportunity to link production and consumption areas and integrate territories making them more available [Kopp et al., 2013, p. xi]. Therefore, sustainable development of transport, just behind the elimination of poverty, is to a great extent a major challenge for developed economies. Mobility patterns ingrained in society are perceived as unsustainable, yet for decades important attempts have been made to make mobility more environmentally friendly. The use of public transport and ‘green’ attitudes which are particularly important in the pursuit of reduction of transport external costs generated within urban areas have an important role in improving mobility trends [Holden, New Generation of Bike-Sharing Systems in China: Lessons for European Cities 27 2007, p. 101, 115]. Another factor that has a significant impact on the way of achieving sus- tainability in transport is the development of information and communications technologies (the ICT sector). At the same time consumer awareness, propagation of collaborative web communities and social commerce/sharing have gained in importance within society, which is directly conditioned by the ICT evolution. All these trends referring to modern econo- mies are the characteristics of so called ‘sharing economy’, which describes a society aware of threats concerning the ecological, societal and development impact on the environment [Hamari et al., 2016, pp. 2047–2048]. Focusing on urban areas, it is crucial to underline challenges for making their development more sustainable. The main, transport-oriented problems faced by modern cities include the popularisation of individual car transport, infrastructure deterioration, increasing space demand, traffic congestion, air, water and soil pollution, traffic accidents – all generating external costs [Ważna, 2017, p. 35]. Nowadays the private passenger car is still the most pop- ular mode of passenger transport in the world and what is crucial – about 70% of motorised individual transport (MIT- cars and powered two-wheelers) is being used across urbanised areas. A scale of the MIT usage smoothly leads to the issue of fuel consumption. The EU annual energy consumption growth rate of 1.3% is mainly caused by the popularisation of private cars. Thus, exhaust emission reduction is one of the main goals for the transport sector. The tools enabling this direction of transport development are electrification and other innovative driving systems, alternative energy storage and lightweight construction of vehicles. Moreover, modern transport policy puts an emphasis on the organisation and management of transport as equally important tool in this field. Sustainable transport policy also leans on shaping pas- sengers’ transport behaviour by introducing solutions that encourage passengers to choose alternatives to the Motorised Individual Transport vehicles. These alternatives are cars with electric engines, but primarily public transport and so-called Micro-Mobility consisting of walking, bicycles and e-bicycles [Brunner, 2018, p. 2]. The modal split of passenger transport within urbanised areas differs among countries. Despite the fact that bicycles have a greater or lesser share in urban travel in particular cities, the role of cycling in the development of sustainable transport systems is significant. The most important advantages of bicycle usage are low space demand and high infrastructure capacity as well as a positive impact on the environment (low noisiness and energy-efficiency) and human health [Caggiani, 2017]. Bike-sharing systems are the factor influencing the increase in the use of bicycles in urban journeys just beside the creation and improvement of infra- structure, material and financial incentives for employees traveling to work on bicycles or education and promotion of the advantages of using a bicycle [Studium koncepcyjne, 2016, p. 10]. Moreover, introducing bike-sharing systems gives an opportunity to organise public transport interchanges better [Brunner, 2018, p. 4, Czech et al., 2018a, p. 104]. Shared bicycles facilitate getting to stops and stations for those who do not own a private bike. Additionally, bike-sharing gives more flexibility – shared bicycles users are not burdened with a threat of stealing or an obligation to service a bicycle. As a consequence, public transport services are 28 Tomasz Bieliński, Agnieszka Ważna becoming more available and popular. The solutions such as bike & ride systems promoting the usage of bicycles are considered to be an effective sustainable transport policy tool helping to shape passengers’ behaviour [Kultura rowerowa, 2013, p. 11]. A decrease in the usage of cars is a desirable change in the modal split in all congested urban areas. Thus, bicycles as a means of transport, as well as a tool improving accessibility of public transport services fit in this concept. Analysing the role of bike-sharing systems in urban areas it is necessary to present some basic facts concerning the history of the idea. The first concept of the public bikes system was created in Amsterdam, the Netherlands, in the 1960s [Czech et al., 2018b, p. 162]. The White Bikes (the Witte Fietse) programme, consisting of white painted bicycles which were delivered on the streets of Amsterdam by municipal activists, collapsed quickly due to thefts and vandalism. This so-called first generation of bike-sharing was bereft of payment and security mechanisms [Fishman, 2015, p. 94]. The next generations were improved with solutions