Hellobike Offers High Credit Scorers Deposit-Free Rides Across China
Liao Shumin
DATE:  Mar 14 2018
/ SOURCE:  Yicai
Hellobike Offers High Credit Scorers Deposit-Free Rides Across China Hellobike Offers High Credit Scorers Deposit-Free Rides Across China

(Yicai Global) March 13 -- Cycle-sharing platform Hellobike, run by Shanghai Junzheng Network Technology Co., will become the first company of its kind to offer deposit-free rides across China for users with high credit scores.

Riders with a score of 650 or more on Sesame Credit, the credit-rating agency run by Ant Financial Services Group, can use the Alipay app to unlock Hellobike bicycles and ride them without putting down a security deposit, the bike sharer said in a statement. Alipay is the third-party payment app run by Ant Financial, Alibaba Group Holding Ltd.'s financial affiliate.

The initiative could benefit 160 million riders by the end of this year, saving consumers a combined CNY30 billion (USD4.8 billion), the statement said. The company has already trialed the service in 20 cities over the past three months and waived about CNY1.9 billion in deposits.

"Hellobike has pushed forward to resolve issues with bike-sharing deposits, which have been heavily criticized," said Hu Tao, general manager of Sesame Credit. There are now more than 10 million bikes that can be ridden deposit-free throughout China, he added.

There were 221 million shared bicycle riders in China as of the end of last year, according to data from the China Internet Network Information Center. Based on deposits charged by major providers, which range between CNY99 (USD16) and CNY299, outstanding deposits nationwide total between CNY20 billion and CNY60 billion.

Many bike-sharing operators have struggled with cash flow since the second half of last year, and have been unable to refund CNY1.5 billion worth of user deposits, affecting up to seven million shared cycle riders. Consumer associations across the country have received thousands of complaints concerning the issue, which is more prominent than any other relating to shared bikes, according to December data from the China Consumers Association.

The problem has become a key focus for the sector and has also attracted government attention. The Ministry of Transport and local regulators in Beijing and Shanghai have issued guidelines that explicitly encourage deposit-free riding.

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Keywords:   Hellobike,Security Deposits,Bike Sharing,ANT FINANCIAL,Sesame Credit