Shanghai-based mobile electric bike sharing app operator Cyou Bike Technology recently announced completion of new funding from Sun Jian, chairman of tourism services provider Beijing Tourism Group and CEO of hotel chain operator Home Inns Group, and Yu Gang, chairman of medicine e-commerce operator No.1 Pharmacy Chain. New Access Capital also participated in this funding round. Funds will mainly be used for expansion to new cities, brand marketing, and further technology development to enhance the user experience.
Cyou Bike was founded in December 2016 by Bian Yong and Wang Jingyu. The company completed RMB 8-digit angel funding from New Access Capital in April 2017, and began pilot operations in Shanghai at the beginning of May.
Bian said that since Cyou Bike began deploying its bicycles, its user base has grown by approximately 300% per week, and it has a user retention rate of nearly 60%.
Cyou Bike's bicycles feature an aluminum frame and weigh approximately 25 kg. They are equipped with Bluetooth and QR code locks, and use a chain drive system and solid tires. Each bike costs approximately RMB 2,000 to produce, and users are asked to make a RMB 299 deposit before paying RMB 2 per hour to rent a bike. Based on an expected operating frequency of 4 hours per day, and considering maintenance and replacement costs, each bike has a cost-recovery period of approximately 10 months.
In term of theft prevention, Cyou uses geofencing technology and has a GPS location-tracking device on every bicycle.
Editor's Note: For more information on Cyou Bike, please see "Mobile Electric Bike Sharing App 'Cyou Bike' Lands RMB 8-digit Pre-A Funding," MD 4/10/17 issue. Chinese information technology industry investment information portal IT Juzi reports this new round of funding as Cyou Bike's Series A financing.