Research on Risk Management and Profitability of Bike Sharing Business Model

DOI

10.2991/aebmr.k.210917.019How to use a DOI?

Keywords

Bike sharing, Risk management, Profitability, Problems, Strategies

Abstract

People’s needs for personal leasing create the explosion of sharing economy systems, bike sharing meets people’s demand for short-distance and eco-friendly travels. Therefore, many bike sharing enterprises emerge as the times require. In the context of bike sharing, risk management and profitability are vital factors that affect the survival and sustainable development of shared-bike enterprises. However, today, the profit model is unclear, and many profit issues occur in the whole bike sharing industry. This paper investigates and classifies potential causes of the lack of profitability of shared-bike enterprises and how companies can tackle those issues. Specifically, the literature analysis method and case study are used for the research. We propose the substance of bike sharing, which is the basic premise for profitability. Then, we analyze the deficiency of bike-sharing platforms and profits and costs of OFO, a typical example of a bike sharing failure. After which, management risks are segmented into financial risk, operational risk, credit risk, technical risk, and social risk and explained in further detail. We subsequently discuss feasible solutions to deal with problems at present and summarize them into five main categories of strategies: cost reduction, multiple profit methods, internal supervision system establishment, technical development, and social publicity. The paper provides effective suggestions for bike sharing risk management and profitability. It aims to offer a reference for shared-bike enterprises and other sharing economy organizations to maintain long-term and stable progress and development, contributing to the shared-bike business model and even the sharing economy systems.

Copyright

© 2021, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Xiangyu Tian
AU  - Yijie Wang
AU  - Yuwen Shi
PY  - 2021
DA  - 2021/09/18
TI  - Research on Risk Management and Profitability of Bike Sharing Business Model
BT  - Proceedings of the 2021 International Conference on Financial Management and Economic Transition (FMET 2021)
PB  - Atlantis Press
SP  - 110
EP  - 116
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.210917.019
DO  - 10.2991/aebmr.k.210917.019
ID  - Tian2021
ER  -