When it comes to getting around China's bustling cities, using shared bikes has become an increasingly popular choice. But some bike-sharing start-ups have not had an easy ride. Bluegogo is one of them, and has run into obstacles that have spelled its demise. Chuck Tinte has more.

Bluegogo, one of China's largest bike-sharing start-ups, has become the latest casualty in the country's oversaturated shared bike market.

Following a period of rapid expansion fueled by venture capital funds, Bluegogo is going bust, with an announcement of the company's dissolution, as it's entangled in some 30 million US dollars in debt.

Bluegogo's office in Beijing is now empty and those calling the customer services hotline are not getting any answers. Bluegogo's CEO Li Gang has written an open letter, saying "As a CEO, I've made mistakes, I was filled with arrogance."

LIAO HUA, LAWYER TAHOTA LAW FIRM "Because shared bikes are an Internet Plus idea, it's a new idea. Our government hasn't found a similar strategy when the shared bike concept first started and was put on the market. So it creates systematic risks."

Over the past year, more than 11 start-ups kicked off fundraising and wheeled out shared bikes. After launching in January, Bluegogo rolled out 600-thousand bicycles in a mere six months, winning over 20 million riders. But months later, the company was reported to have burned through 90 million dollars since its founding last November. The customers' top concern, the return of their 15 dollar deposit, or 30 dollar deposit for a half-year card.

HUANG KAI, LAWYER TAHOTA LAW FIRM "About refunding the deposit for shared bikes, it depends on the promise the company first made to customers. If they promised to return the deposit, they have to obey that. If they promise to return it with certain conditions, that should be followed."

China's streets are packed with shared bikes, an oversaturated market, which could lead the bike-sharing craze to cool down slightly. In the hugely competitive market, at least three other bike sharing companies have gone bust in recent months

Bluegogo says it will pay employees' salaries until February 2018, but for riders, they may not find Bluegogo bikes on the streets any more, and a refund on the deposit? Only time will tell. Chuck Tinte, CGTN.