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System Dynamics Modeling of Dockless Bike-Sharing Program Operations: A Case Study of Mobike in Beijing, China

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  • Tianjian Yang

    (School of Economics and Management, Beijing University of Posts and Telecommunications, Beijing 100876, China)

  • Ye Li

    (School of Economics and Management, Beijing University of Posts and Telecommunications, Beijing 100876, China)

  • Simin Zhou

    (School of Economics and Management, Beijing University of Posts and Telecommunications, Beijing 100876, China)

Abstract

In China, dockless bike-sharing programs (DBSPs) have changed people’s travel modes, alleviated urban traffic congestion, and reduced carbon emissions. However, a number of DBSPs have experienced financial crises since 2018. This means that research on DBSPs must be considered not only in terms of the environment and technology, but also in the operation of the program. In this paper, we modeled the DBSP operations in a certain area using a system dynamics simulation approach. The main purpose was to explore the dynamics of the program’s operation process and evaluate possible improvement strategies for maximizing the revenue of the overall DBSP. Specifically, the analysis focused on the economic profits of DBSPs in an environment of competition and government regulation. The research findings revealed that the dockless bike-sharing industry has great economic profits, but in the current environment, the market needs to be regulated by the local government. If a DBSP does not introduce new technologies or find new profit channels, it will be difficult to develop sustainably by only relying on riding profits. In addition, we provide a case study of Mobike’s operations in Beijing to support these findings and validate the developed model. Finally, we discuss Mobike’s possible improvement strategies.

Suggested Citation

  • Tianjian Yang & Ye Li & Simin Zhou, 2019. "System Dynamics Modeling of Dockless Bike-Sharing Program Operations: A Case Study of Mobike in Beijing, China," Sustainability, MDPI, vol. 11(6), pages 1-20, March.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:6:p:1601-:d:214437
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    References listed on IDEAS

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    Cited by:

    1. Tianjian Yang & Ye Li & Simin Zhou & Yu Zhang, 2019. "Dynamic Feedback Analysis of Influencing Factors and Challenges of Dockless Bike-Sharing Sustainability in China," Sustainability, MDPI, vol. 11(17), pages 1-17, August.
    2. Xiaofang Yang & Hai Jiang, 2020. "Influence of Electronic-Docking Stations on China’s Dockless Bikesharing Programs: Evidence from Beijing," Sustainability, MDPI, vol. 12(9), pages 1-20, April.
    3. Ioannis Politis & Ioannis Fyrogenis & Efthymis Papadopoulos & Anastasia Nikolaidou & Eleni Verani, 2020. "Shifting to Shared Wheels: Factors Affecting Dockless Bike-Sharing Choice for Short and Long Trips," Sustainability, MDPI, vol. 12(19), pages 1-25, October.
    4. Seonghoon Ban & Kyung Hoon Hyun, 2019. "Designing a User Participation-Based Bike Rebalancing Service," Sustainability, MDPI, vol. 11(8), pages 1-14, April.
    5. Jie Lyu & Jing Zhang, 2021. "An Empirical Study into Consumer Acceptance of Dockless Bikes Sharing System Based on TAM," Sustainability, MDPI, vol. 13(4), pages 1-16, February.
    6. Wang, Yao & Jin, Huan & Zheng, Shiyuan & Shang, Wen-Long & Wang, Kun, 2023. "Bike-sharing duopoly competition under government regulation," Applied Energy, Elsevier, vol. 343(C).
    7. Ruijing Wu & Shaoxuan Liu & Zhenyang Shi, 2019. "Customer Incentive Rebalancing Plan in Free-Float Bike-Sharing System with Limited Information," Sustainability, MDPI, vol. 11(11), pages 1-24, May.
    8. Shouheng Sun, 2021. "How Does the Collaborative Economy Advance Better Product Lifetimes? A Case Study of Free-Floating Bike Sharing," Sustainability, MDPI, vol. 13(3), pages 1-22, January.

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