Bike Sharing In China and Major Economies of the World article review
This business venture is typical in significant economies of the world such as United States of America and China. It is a vast and promising industry with the potential to give many returns to individuals who have invested in this venture. Several firms have invested in this venture such as Ofo, Didi, Mobike, and Yueqi in China together with Limebike in the United States of America (Wang, 2018). Although the new business venture is, a successful case of taping into entrepreneurship as a factor of production, it has brought several challenges with it. The problems produced by this entrepreneurial venture include reduced pedestrian pavement space as the bicycles owners park their bicycles mostly on pedestrian pavements that could eventually lead to accidents.
The needs to regulate the bicycle-leasing sector, the local governments, have implemented measures that the service providers have to apply. The merit is that this creates employment opportunities for both the city management bodies as well as the companies due to the need to adhere to the implemented new policies. The writer posits that the local governments want these bicycles also need to have docking capabilities to improve the security of these bicycles but on this, the writer is wrong since the safety of the city has nothing to do with the proliferation of bikes in the major cities. Instead, the spread of bikes in the cities is a likely to be a significant contributor to the number of accidents on the roads.
This docking addition will enable the local governments to earn more revenue from parked bikes, in the current state of the bicycles the local governments do not get anything from the parking of these bicycles. However, within the last two years, most of these companies increased their investments though they have not achieved the expected returns. The future income though it is projected to increase the impending implementation of strict laws to manage these firms is a cause to worry for the investors since this could lead to reduced profit margins or even make the investors incur losses. From the study of the article, what is of importance is the use of entrepreneurial talent as a production factor. It has created employment opportunities especially the employees who manage and issue out the bicycles.
From $10 to earn access
Only on Studyloop