Electric scooters, basketballs, and rainbow-colored umbrellas—nothing appears out of limits in the booming “sharing economy” of China. Where once Chinese users might look to shell out a penny on items such as luxury cars or handbags, now they can put them on rental for short time taking benefit of the bang of mobile transaction technology.
As ever with China, the figure are mind blowing: The shared economy grew more than two-fold last year to 3.45 Trillion Yuan ($505 Billion) from a year previous, as per official numbers, which estimated average yearly enlargement of 40% in the coming years. But analysts alert that China, which has quickly become a global leader in the concept, is over sharing, and some business ventures are going out of control in terms of growth.
The violently competitive bike-sharing trend in major cities of China stated what was broadly reported as its first prey last month when Wukong Bike arrived the end of the road with almost all of its bikes presumed stolen and missing. The government has backed the sharing market as a fresh driving factor as the general economy slows, but there are symptoms Beijing is turning out to be cautious and this week it requested local governments to surface with new industry policies.
In Shanghai, where bicycles of all colors terrorized to conquest the streets, Claire Victoria Pan claimed that she utilizes a range of sharing services for cars, bikes including Airbnb as well as co-working spaces. “These sharing equipment make life very handy,” claimed Pan, living in Shanghai, where she discovered a wine-trading firm, but originally from Hong Kong. “There is excess-sharing, but it is just for time being. When a new thing comes into view, it will grow rapidly so that there is over supply. “But after a certain time frame, people discover that if demand is restricted, then the supply will obviously reduce.”
Supported by a torrent of business capital, the trend has initiated some new ideas, comprising from a capitalist in Zhejiang province of Eastern China providing basketballs on rent to save the trouble of carrying them to games.