Two major Chinese cities have upheld a ban on new bicycle-sharing firms, rejecting an application by the world’s most valuable start-up to place more two-wheelers on their roads.
Guangzhou and Shenzhen, both in Guangdong province, have rebuffed attempts by Didi Chuxing to start services in their cities, citing saturation and ill-management of exiting bicycles, according to Guangdong News, citing regulators.
A representative for Beijing-based Didi said the company is “in constructive communication” with authorities on providing its bicycle-renting services, while declining to comment on specific cases.
All bike-sharing platforms have to file written requests before adding new bikes into the market, according to a regulation put in place by Shenzhen traffic authorities since last September.
The rejection comes as Didi strives to build its own bicycle-sharing brand, after acquiring Bluegogo, once China’s third-largest bicycle-sharing provider before ceasing operations, in January.