At least ten major players are competing for customers in Shanghai’s crowded bike-sharing market. Most of them are start-ups backed by angel investors. A formerly state-owned bike company is bucking the trend, however, and promises to step up the competition up to the next gear.

The 76-year-old bike brand Forever is entering the sharing economy through a team-up with newcomer, U-bike, in Shanghai.

Forever Bicycle will bring some new designs to the market, which include having their bikes feature switchable gears and sport carbon-fiber mechanical transmissions.

The company has been making bikes for public transport since 2008. It was hired by the Shanghai Municipal Government when it rolled out its first batch of 1,000 “docking” public bikes to give commuters an extra option for covering that “last mile.” 

According to Professor Chu Dajian from Shanghai Tongji University, the bike sharing industry boomed in 2016 and went beyond the government’s expectation.

About 80,000 docking bikes, named for the need to be parked at docking stations after use, did not gain traction in the city because of strict regulations for users and the limited number of locations. Experts say about half a million bikes will be needed to meet Shanghai’s demand, however, only half of that has been fulfilled.

Guo Jianrong, from Shanghai Bicycle Industry Association, said that the current standard for bike production is not high enough, and it seems like any company that is capable of producing bikes can enter the market. He thinks that a higher bike production standard should be applied.