How to Regulate the BikeSharing Industry

faulty bikes can be repaired in time.

Third, legal liabilities and compensation standards must be defined clearly. According to provisions on motor vehicles in the Tort Liability Law, bike- sharing firms and users actually establish a non-motor vehicle rental contract. In case of an accident, if the user of shared bike is responsible, he or she must assume the liability; but if the bikesharing platform involved is also at fault— for example, through defects in bike safety or providing services to minors below 12—it must also assume responsibility.

Law enforcement should also be strengthened to increase the safety of this industry.

First, the government should intensify real-time monitoring on the distribution of shared bikes. Bike-sharing firms must report to the local transportation department before distributing bikes in a city, and the government should decide the volume of bikes to be distributed based on big-data analysis.

Second, the government should bolster supervision on the contracts used by bikesharing firms, especially the exemption clauses. The regulatory authorities must examine whether there are clauses conflicting with the Law on Protection of Consumer Rights and Interests. It may issue uniform contracts when time is ripe to define the rights and obligations of both bike-sharing platforms and users.

Third, the transportation authorities should establish an information-collaboration system with bike-sharing firms in order to tighten punishment for illegal riding and parking. Since shared bikes are owned by those companies, once the users break traffic regulations, the police are unable to punish them by detaining the bikes or imposing fines. Therefore, an information system will help the police obtain information on those who have violated traffic regulations to punish them.