After much initial hubub and curiosity, Bluegogo, a venture Chinese bikeshare start-up, announced it would suspend operations in the Bay Area market. The move comes amid heavy scrutiny from city officials, bike advocates and public space managers, especially with regard to the company’s somewhat notorious operational model, which consists of unloading tens of thousands of bikes into the urban streetscape, with little regard for how they’re organized or maintained.
Though company officials are maintaining a brave public face, this development can only be viewed as a substantial setback. San Francisco, with its bike-friendly and tech- forward culture, was viewed as one of the most promising locations for this new breed of bikeshare start-ups, and these early setbacks don’t bode well for future competitiveness in the market.
Here are five observations: