This piece, from a series exploring Chinese IT, focuses on the rise and evolution of bike-sharing services in China. It explains how these services, initially seen as solving the "last mile" problem, exploded due to heavy investment and intense competition between companies like ofo and Mobike. Despite facing issues like excessive numbers of abandoned bikes and significant financial losses for major players, the author argues that the business was not simply a bubble that burst. Instead, it has stabilized at a sustainable level, with services like Hello Bike emerging and now being used by citizens as a practical form of public transport. The text also details the initial innovative business models and the strategic missteps and market forces that led to the industry's initial struggles and subsequent adjustments.

This excerpt, from IT journalist Makino Takefumi's newsletter, explains the widespread adoption of Alipay and WeChat Payin China. It argues that while factors like a history of counterfeit currency may have played a minor role, the primary driver of their popularity is the unparalleled convenience they offer, allowing users to access a vast array of daily life services like transportation, utilities, and shopping directly within the payment apps. The author highlights the contrast with the current state of cashless payment adoption and functionality in Japan, suggesting China's approach of integrating numerous services into a single platform is key to its success.

This newsletter introduces the topic of Chinese IT, focusing on key concepts within the industry. The first issue concentrates on fresh food e-commerce, explaining its emergence and the strategies employed by leading companies. Specifically, the author examines the "front-end warehouse" (前置倉) model, exemplified by Daily Youxian, and the "store-warehouse integration" (店倉合一) model used by Alibaba's Hema Fresh. The piece highlights how these models address the challenges of delivering perishable goods quickly and efficiently, attracting different customer demographics and reflecting the competitive landscape between tech giants Tencent and Alibaba in this growing sector.