Does government supervision suppress free-floating bike sharing development? Evidence from Mobike in China

This paper explores the effect of government supervision on the development of FFBS by analyzing massive travel information data. Our identification strategy exploits a natural experiment focusing on Mobike in Chengdu. We find that supervision does not necessarily suppress the development of FFBS. It also allows FFBS to increase its focus on alleviating the pressure of public transport and reducing the consumption of public resources. Moreover, we identify that the impact of government supervision on weekends is considerably more significant than on weekdays given that government supervision has a significant suppression effect on the FFBS travel behavior of scattered parking, leisure, and long distance. In contrast, the effect of government supervision on the FFBS travel behavior of commuting and schooling is not significant. We finally present implications for government and operators of FFBS, especially in developing countries, on the sustainable development of FFBS.