Mobike began in Shanghai in April 2016 and already has a few hundred thousand of its silver-orange bikes in 13 Chinese cities. Ofo began in Beijing in 2015 and now has 1 million yellow bikes in 33 Chinese cities and in Singapore.

Both companies have their own smartphone app, which customers can, once they have signed up for a one-time fee of the equivalent of $43, use to pay as little as 1 yuan (15 cents) an hour to release the bike lock and then ride away, leaving the bike anywhere in the city; the Mobike app, powered by GPS, shows where customers can find the nearest bike not being used.

Funding is rich for both companies. Mobike recently announced a $215 million-equivalent investment by several high-powered companies, including Uber. Ride-sharing competitor Didi Chuxing has contributed a large amount of money to Ofo.