Bike rental company Xiaoming has officially begun bankruptcy proceedings becoming China’s first bike rental company to do so. The decision of the Intermediate People’s Court of Guangzhou, which was in charge of the case, was announced yesterday, July 10th, the Paper reports.

Xiaoming (小鸣单车) was part of a big wave of bike rental companies that started to fold and experience troubles with deposit returns at the end of last year. By November 2017, six bike rental companies in China have shuttered, including Coolqi. Once China’s third largest player in the bike-rental space, Bluegogo, found itself in deep debt and was taken over by ride-hailing giant Didi. Meanwhile, thousands of discarded bikes were left on the streets.

Since its founding in July 2016, Xiaoming has managed to deploy 430,000 bikes across more than 10 cities, including Guangzhou and Shanghai. The total amount of user deposits reached as high as RMB 800 million.

Start your free trial now.

Get instant access to all our premium content, archives, newsletters, and online community.

Monthly Membership

Yearly Membership

What you get

Full access to all premium content and our full archives

Members'-only newsletters

Preferential access and discounts to all TechNode events

Direct access to the TechNode newsroom

Start your free trial now.

Get instant access to all our premium content, archives, newsletters, and online community.

Monthly Membership

Yearly Membership

Masha Borak

Masha Borak is a technology reporter based in Beijing. Write to her at masha.borak [at] technode.com. Pitches with the word "disruptive" will be ignored. Read a good book - learn some more adjectives.