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The Shanghai government issued an assessment criterion for shared bikes on its website on Monday in which it stated the number of bikes in the city will be adjusted based on maintenance programs, services and user credibility.
The criterion was issued by the city’s police, transport commission and urban management and law enforcement bureau.
There are 25 indexes and there will be an assessment done every six months. Each firm starts with 1,000 points. Failures in assessments will cost points.
The firm ranked bottom will lose market share in the city, or face a ban.
Among the indexes, 19 look at daily maintenance and service levels, including parking and serviceability, staff attitude, and how quickly firms return deposits.
Another four indexes reward firms whose bikes have a high turnover rate and are ridden more often, as well as firms who come up with creative management and technologies.
The last two indexes are to punish the firms which failed to register their bikes on the city’s supervisory database or put bikes on the streets without permission.
Since August 2017, the Shanghai Transportation Commission has banned putting new bikes on the streets as the number of bikes was getting out of control.
But the new assessment criterion states that any firms who want to enter the Shanghai market can apply for permission 30 days before starting operations.
After approving applications, the authorities will offer them a designated area for pilot operations.
The number of the bikes from newcomers will be limited to 500 to 5,000 downtown, or 1,500 to 15,000 in suburban districts. They can have trial operations in no more than two districts.
The pilot operations will last for six months and if the firms do not violate the two punishment indexes, they will be allowed to put more bikes on the streets. Otherwise they will be banned.
Local share-bike firm Hello Bike said the assessment criterion provides a good ground for the development of the industry as well as a solution to managing the number of shared bikes in the city.