13.3.3 Lessons Learned from Shared Bicycle Scheme
Although the shared bicycle scheme in Hangzhou has been a success, this has not
been replicated nationwide.
In August 2019, there were 19.5 million shared bicycles in 360 cities in China,
more than 300 million registered accounts, and an average of 47 million daily rides.
However, this has fallen dramatically compared to previous years. In 2017, up to
77 companies entered the market, which is now composed of fewer than 10. In
Shanghai, there were up to 1.7 million shared bicycles in 2017, but by 2019 this had
decreased by approximately 30% to 500,000.
What has happened to all the shared bicycles that have been discarded in China
due to overproduction? They are stored by different companies and visible in aerial
photographs, where their bright colors resemble fields of flowers. By the end of
2020, nearly ten million bicycles are expected to be discarded in China, with overcompetition resulting in a saturated mass of bicycles flooding the streets, destined to
be removed and taken to storage and waste disposal sites (Fig. 13.5).
These graveyards of shared bicycles are spreading across China. All aspects of
shared bicycle systems, from investment to disposal, are progressing in China at a
rate that is unimaginable in Japan. Problems such as exaggerated investment due to
excessive competition, proliferation of abandoned bicycles on the streets, and the
uncertainty of deposit management are common. New investment is decreasing and
risks to cash flow have been reported. However, these issues are expected to be
resolved in the future.
13.4 Sustainability in the Sharing Economy
13.4.1 Outlook for the Sharing Economy
The following trends in technological progress and social system improvement can
be observed toward sustainable development (Graedel and Allenby, 2003).
1. Dematerialization: Reducing the use of materials as much as possible to deliver
the same or better functions or services, e.g., the compactness of personal
computers, weight reduction of product packaging, and shifting from product to
service, and from proprietary to sharing
2. Material substitution: Replacing currently used materials in order to reduce
damage to the environment, e.g., development of biological pesticides, renewable
energy use, and improving recycling
3. Decarbonization: Mainly improving energy efficiency, e.g., through the introduction of new transportation systems, popularization of shared bicycles
4. Coupling with information and communication technology (ICT): Using ICT to
enable efficient planning, monitoring, and management of various business
13 Social Innovation Toward a Low-Carbon Society
257
Although the shared bicycle scheme in Hangzhou has been a success, this has not
been replicated nationwide.
In August 2019, there were 19.5 million shared bicycles in 360 cities in China,
more than 300 million registered accounts, and an average of 47 million daily rides.
However, this has fallen dramatically compared to previous years. In 2017, up to
77 companies entered the market, which is now composed of fewer than 10. In
Shanghai, there were up to 1.7 million shared bicycles in 2017, but by 2019 this had
decreased by approximately 30% to 500,000.
What has happened to all the shared bicycles that have been discarded in China
due to overproduction? They are stored by different companies and visible in aerial
photographs, where their bright colors resemble fields of flowers. By the end of
2020, nearly ten million bicycles are expected to be discarded in China, with overcompetition resulting in a saturated mass of bicycles flooding the streets, destined to
be removed and taken to storage and waste disposal sites (Fig. 13.5).
These graveyards of shared bicycles are spreading across China. All aspects of
shared bicycle systems, from investment to disposal, are progressing in China at a
rate that is unimaginable in Japan. Problems such as exaggerated investment due to
excessive competition, proliferation of abandoned bicycles on the streets, and the
uncertainty of deposit management are common. New investment is decreasing and
risks to cash flow have been reported. However, these issues are expected to be
resolved in the future.
13.4 Sustainability in the Sharing Economy
13.4.1 Outlook for the Sharing Economy
The following trends in technological progress and social system improvement can
be observed toward sustainable development (Graedel and Allenby, 2003).
1. Dematerialization: Reducing the use of materials as much as possible to deliver
the same or better functions or services, e.g., the compactness of personal
computers, weight reduction of product packaging, and shifting from product to
service, and from proprietary to sharing
2. Material substitution: Replacing currently used materials in order to reduce
damage to the environment, e.g., development of biological pesticides, renewable
energy use, and improving recycling
3. Decarbonization: Mainly improving energy efficiency, e.g., through the introduction of new transportation systems, popularization of shared bicycles
4. Coupling with information and communication technology (ICT): Using ICT to
enable efficient planning, monitoring, and management of various business
13 Social Innovation Toward a Low-Carbon Society
257