It seems that Didiโs take-over of Bluegogoโs bike-rental business hasnโt been smooth sailing. Transportation authorities in Shenzhen and Guangzhou have been in talks with Didi, saying that operating a bike-rental business under Bluegogoโs name is against regulations due to Bluegogoโs unsolved deposit issues and operation problems.
Didi announced last week that it has launched its own bike-rental platform after it bought up Bluegogoโs bicycles and took over a part of its business. That being said, some of Bluegogoโs blue bikesโwhich are maintained by the companyโare returning to the streets.
However, just a few days later, Shenzhenโs transportation regulator pointed out that the city has banned placement for new bikes (in Chinese) and that Didi is not allowed to operate Bluegogoโs bike-rental business before helping sort out the deposit issues. There have been reports earlier saying that Bluegogoโs users canโt get a refund for deposits.
On top of that, Guangzhou transportation authorities also told local media that it has talked to Didi and warned that itโs not allowed to place new bikes on the streets and Didi should take care of the remaining issues (in Chinese) Bluegogo left behind.
โDidi will actively cooperate with the government to push forward relevant business and provide residents more convenient services,โ Didi told TechNode but didnโt specify more details about its approach.
Didi users can now ride Bluegogoโs bikes with a deposit waiver if providing their their Sesame Credit score operated by Alibabaโs financial arm Ant Financial. As for usersโ deposits, Didi provides another option for Bluegogo usersโexchanging them into coupons for rides with Didiโin addition to their original pursuit of a deposit refund from Bluegogo.
