Online bike firm gets into gear with model launch

Internet startup 700 Bike has launched its new generation of bicycles.

The company, backed by Zhang Xiangdong, former president of Sungy Mobile Ltd, unveiled its smart bikes range on Sunday. Sungy Mobile Ltd is China's first Nasdaq-listed mobile Internet company.

"There is no suitable transportation methods in China for short-distance trips, so we are here to meet the demand with a visually appealing and physically comfortable bike," Zhang said.

Last month, the company launched an Internet campaign on social networking sites to promote the bikes. Without disclosing any information, the company called on cycling enthusiasts to pay 7 yuan ($1.1) or 200 yuan to place an order.

Within 10 days, the company received 100,000 yuan ($16,000) in orders.

The bikes, equipped with a built-in screens that show the time, the speed and the mileage, are designed for people living in big cities.

"The bicycle market in China is dominated by mountain bikes. Their sturdy frames and fat tires are not suitable for riding in crowded cities," Zhang said.

Like the smartphone manufacturer Xiaomi Inc, which relies on a direct-sale model to reduce operating costs, 700 Bike has concentrated on online orders. The bikes, priced at 2,499 yuan, became available on the company's official website 700Bike.com on Monday.

"Last year, over 25 million bikes were sold in China. But over 40 percent to 50 percent of profits are eaten by middlemen. It is time for a change," Zhang said.