Wukong Bicycle lost 90% of their bicycles by the end of their fifth month due to theft. The five-month old startup announced their closure on June 13 after suffering significant losses, ultimately using up 2 million yuan (US$292,890). The company announced that they would refund deposits to their users.
China has more than 30-bike-sharing apps and Wukong was the first to shut down. The competition in the Chinese market has intensified with billions of dollars being invested in the sharing transportation industry. Key players in the Chinese bike-sharing market, such as Ofo, are in over 100 cities across China and receives more than 20 million orders everyday. Ofo became the first bike-sharer to be valued at over US$1 billion.
Wukong’s CEO Lei Houyi added, “So now we have no bikes and no further funding. But Ofo has lots of bikes and even offer the bikes for free. How can we compete with that?”