InDecember 2015, Beijing issued red alert over air pollution for the first time(BBC News, 2015). And in 2016, China issued first national smog red alert. Itwarned millions of people in 24 cities in the north-east, including Beijing,limiting going out due to air pollution. Many schools closed down, on-roadtraffic was restricted and flights were cancelled (Newsweek, 2017).Inorder to reduce traffic congestion and encourage people to use publictransport, Beijing government offered a number of different solutions,including the arrangement of private lanes for bicycles.
However, many peoplewere not keen on cycling to the bus or subway station, as there is no parkingnear these locations and the risk of losing bicycles was high.Dueto this fact, many Chinese technology companies have launched bike sharingservices like Mobike, Ofo or BlueGogo. These companies bought bicycles with amodern design, installed locking and GPS systems, and placed them in parkinglots along the sidewalk in front of the train station, bus station, schools,supermarkets.
.. for customers to rent at any time, anywhere at a reasonablecost.In2008, first bike-sharing program was launched in Hangzhou with 2800 bikes. Thissoon wide spreaded all over China and became one of largest bike sharing systemin the world (Citylab, 2017).
At the end of 2014, there were 235 cities whichoperated bike sharing programs with nearly 750000 bikes in 28000 stations inChina. Beijing (first launched in 2012) had 16,000 bikes and 508 stations(Meddin, 2014). In 2015, the number of shared bikes hit one million, and nearly900 bike sharing systems operated worldwide (CityLab, 2017).
Althoughthe number of bike sharing companies and the number of bicycles on the streetshas increased, the number of users remains low, leading to a serie of smallercompanies failing. Beginning with small players such as Wukong, 3vBike, DingDing Bike, Kala Bike and Kuqi Bike, as of October, Bluegogo – China’s numberthree bike sharing company with two most important markets in Beijing andChengdu, has dropped out of the bike sharing market (Medium, 2017).Therefore,it is crucial to understand the factors that affect user’s usage. Determiningwhich factors are essential when customers choose to ride shared bike and theirsatisfaction level for those factors will help bike sharing companies improvetheir bikes’ usage by adjusting their services and bikes according to theresearch’ s results. (Guo et al.
2017)Theobjective of this research is to understand factors that lead users to decideto ride shared bikes and their satisfaction levels for existing bike sharingservices. More specifically, this research focuses on how quality and varietyof the bikes, price (deposit amount and price/time amount) and promotionprograms, application platform, and customer service affect user’s decision andtheir satisfaction levels on those factors. Questionare surveys are designedand a grading system on Likert scale is given for each question. The surveyswill be filled in by 500 frequent user of bike sharing services in Beijing.