BY taking over Bluegogo's operations, Didi Chuxing's bike-sharing service has broken the rules in Shenzhen before the two parties could clearly settle deposit and maintenance issues, according to an announcement by the Shenzhen Municipal Transport Commission on Friday.
The announcement was made two days after Didi Chuxing, the largest ride-sharing service provider in China, launched its bike-sharing platform, through which users can use Bluegogo bikes for free.
In its response, the Shenzhen transport commission said it had met the operator several times and told the operator that the city had suspended the release of more bikes into the Shenzhen market for a period while the government takes steps to regulate the bike-sharing industry.
Didi will be considered in violation of the rules if the company puts out any additional bikes, either under the name Bluegogo or its own.
Didi recently took over part of Bluegogo, a collapsed bike-sharing firm, and launched a comprehensive bike-sharing platform within its app, which integrates ofo and Bluegogo. It has also introduced deposit-free arrangements for Bluegogo users.
Under the cooperation arrangements, the brand name, deposits, debts and other related properties are retained by Bluegogo. Users will have the option of converting Bluegogo deposits, privileges and app top-up values into Didi bike or car ride coupons of equal value.
Didi hopes its bike-sharing platform will upgrade its short-trip strategy to offer more options for the last 3 kilometers of commutes.