Policy Challenges and Response Strategies for Songguo Chuxing's Entry into High-Tier Cities

Songguo Chuxing, one of the four “national-scale brands” in the shared electric bicycle industry, has adopted a “rural encirclement of cities” strategy since its establishment in 2017, focusing on county-level markets. As of the end of 2024, the company operates in approximately 700 cities with about 700,000 vehicles deployed, making it the only enterprise that focuses on shared electric bicycles as its core business and has achieved large-scale profitability [0]. The company is currently pursuing an IPO on the Hong Kong Stock Exchange, with clear fundraising purposes including “expanding regional coverage and deepening market penetration” [1], indicating its strategic intention to enter high-tier cities.

Shared electric bicycles face multiple policy barriers in high-tier cities. First is

: first-tier cities take a cautious attitude towards the deployment of shared electric bicycles; data from 2020 shows that users in first-tier cities account for only 1.5% [2]. Second is : government supervision continues to be refined, requirements for vehicle deployment and parking are constantly increasing, and government-enterprise cooperation is gradually deepening [0]. Third is : the new national standard for electric bicycles will be officially implemented in 2025, putting forward higher requirements for vehicle production and manufacturing, including speed limits, flame retardant standards, and intelligence levels [0].

Songguo Chuxing should leverage its advantage of having a self-built 5G intelligent factory to ensure all deployed vehicles fully comply with the new national standard. The company already has the capability of “independent R&D and design of whole vehicles”, with product standards higher than the national standard [0], which lays a technical foundation for entering high-tier cities. It is recommended to continue increasing R&D investment to enhance vehicle intelligence through artificial intelligence and big data analysis [1].

The healthy development of the shared electric bicycle industry requires government-enterprise collaboration [2]. Songguo Chuxing should proactively establish communication mechanisms with traffic management departments in high-tier cities, actively participate in local shared mobility planning, and strive for policy support. By providing data to support urban traffic optimization and cooperating with regulatory authorities to establish a sound management system, the company can demonstrate its social responsibility.

Given that first-tier cities have already been布局 by leading enterprises such as Qingju, Meituan, and Hello Bike [2], Songguo Chuxing can consider the following paths: first, select new first-tier or strong second-tier cities with relatively open policies as breakthrough points; second, focus on specific scenarios such as “last-mile” connections at public transport hubs; third, explore deep integration with urban public transport systems.

Users in high-tier cities have higher requirements for service quality. Songguo Chuxing should further optimize its Songguo Artificial Intelligence Operation Management System to improve vehicle scheduling efficiency and user experience in finding bikes; improve the “five-in-one” safety guarantee system covering fire safety, battery safety, riding safety, user safety, and data safety [0]; and strengthen the application of cutting-edge functions such as “adaptive power technology” [0].

Songguo Chuxing needs to be alert to the following risks when entering high-tier cities: first, the first-mover advantage and network effect of leading enterprises; second, local protectionism and existing interest patterns; third, increased compliance costs due to policy uncertainty; fourth, the pressure of iteration between new and old models brought by the implementation of the new national standard [0]. Industry consolidation will accelerate; enterprises with intelligent manufacturing capabilities will dominate the market, while those with weaker financial strength may be eliminated.

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[0] iResearch “2024-2025 China Shared Electric Bicycle Industry Research Report” (https://pdf.dfcfw.com/pdf/H3_AP202504151656745043_1.pdf)

[1] Sina Finance “Songguo Chuxing Pursues Hong Kong IPO” (https://finance.sina.com.cn/stock/hkstock/hkzmt/2026-01-02/doc-inhexwhi4288731.shtml)

[2] LeadLeo Research Institute “New Trend of Green Travel: Intelligent Shared Electric Bicycle Service Report” (https://pdf.dfcfw.com/pdf/H3_AP202409231639989135_1.pdf)