Shanghai transportation authorities jointly announced on August 18 that no more new bikes should be placed in the city, taking a firmer stand in its moves to crack down on bike rental services, our sister site TechNode Chinese is reporting.

“Upon the announcement of this regulation, all bike-rental companies should place a halt on introducing any new bikes in Shanghai. Violations will be booked in Enterprise Credit System as a severe breach,” according to the statement.

The bike-rental schemes may have provided a greener alternative to China’s clogged public transportation, but they have also created serious headaches for local transportation management institutions. Given that most cyclists opt for whichever bike that’s most accessible on the street, the war between the competitors mainly takes the form of dumping more bikes on the street. As the land-grab battle heats up, however, the overwhelming number of bikes has paralyzed existing bike parking and management. The situation is worsened by illegal parking on the sidewalk or street by careless riders.

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Emma Lee

Emma Lee is Shanghai-based tech writer, covering startups and tech happenings in China and Asia in general. We are looking for stories related to tech and China. Reach her at lixin@technode.com.