Bike- sharing rules aim to ensure security of users’ funds, information: Ministry

China’s bike- sharing companies are being urged to waive deposits for users and ensure the security of personal data, under guidelines jointly issued by the Ministry of Transport and nine other government departments on Thursday.

The companies have also been warned against commingling users’ funds with their own. Customers’ money must be held in escrow accounts, which will be subject to scrutiny by fi nance and transport regulators.

Companies must also establish a quick deposit refund system so that users can get their money back as soon as they return bikes.

Bike- sharing companies must make formal arrangements with banks or similar institutions that can provide payment and settlement services for them, the guidelines note.

In terms of information safety, the companies must set up their servers in the Chinese mainland and take further steps to protect users’ personal information.

Also, the personal data obtained from users should not be used in a manner that violates users’ legal rights or the public in- terest, or in any way that exceeds the companies’ scope of service, the guidelines said, adding that the government encourages the companies to provide free bike rental deposits services.

Companies will be responsible for adopting a real name registration system and ensuring that bikes are not parked on sidewalks, roads or public right- of- ways, according to the guidelines.

Two major domestic bike- sharing companies ofo and Mobile on Thursday welcomed the new rules, which show the government’s transparent and encouraging attitude toward the industry.

“The new rules are conducive for the orderly and sound development of the nascent industry,” Mobile said in a statement sent to the Global Times Thursday, noting that the company has been using big data and global positioning system technology to refl ect rising market standards.

Ofo said in a statement sent to the Global Times that it has sought to build up a credit system across many cities, allowing riders who have accumulated high credit ratings to avoid making deposits.