One of the catchier innovations for consumers is the introduction of shared power banks for mobile phones. They are, it seems almost everywhere; in bars, clubs, restaurants and even hair salons. But what started out as a useful, convenient and cheap piece of technology has stopped being so cheap. Companies are increasing prices to increase profit, with reports that some prices have increased to as much as 5 Yuan per hour, a hefty increase and easy to mount up for the consumer. Price increases are not the only complaints users are making. Drop-off points are getting confusing and complicated to find as the market becomes saturated with competition, with at least 80 companies currently sharing the pie. Never the less, with just under 200 million users last year, a number expected to increase to 300 million this year, the market is still viable, even though profits are low. But with so much competition, companies are struggling to create customer loyalty, a challenge in the sharing economy. To gain more market share, companies are increasing the number of power banks, and this means paying more commissions, and therein lies the problem; increased commissions, greater maintenance costs and a low threshold for entry to the market are being reflected in decreased profits.
Source: Money Talks, ICS