Why shared power banks charging strategy become more expensive, and what is their future outlook?

Shared power banks have faced widespread controversy due to their "rising prices and slow charging." In recent months, topics such as "Are shared power banks expensive at 4 yuan per hour?" and "Shared power banks only charge 30% of the battery" have become popular on Weibo, once again bringing the charging fee issue of shared power banks into the spotlight.

Shared power banks emerged as a sub-industry in the "shared" trend. In 2017, with the popularity of the concept of the sharing economy, shared power banks, which had been explored for several years, were propelled by capital and quickly expanded to various cities. At that time, the first 30 minutes or even one hour of usage for users was free, and after exceeding the allotted time, a fee of one yuan per hour was charged, with a daily cap of 10 yuan.

According to a research report released by iMedia Consulting, consumers in restaurant, bar, dessert shop, and other dining scenes accounted for over 50% of the usage rate of shared power banks. Following that, the usage rates were in KTV, cinemas, and other indoor entertainment venues, as well as supermarkets. Airports, train stations, and other transit scenes, as well as scenic spots and amusement parks with longer outdoor stays, were also core scenarios for shared power banks.

In contrast, the prices of shared power banks are not "affordable." In Shanghai, the price of shared power banks is generally around 3-5 yuan per hour. In popular scenic and commercial areas, the price can reach 7 yuan per hour, and in bars, it can even reach 8 yuan per hour. Even at the lowest price of 3 yuan per hour, the price of shared power banks has tripled over the past five years.

Many debates and polls on the price and cost-effectiveness of shared power banks have taken place on online platforms. For example, in a poll asking "Do you think 4 yuan per hour for shared power banks is expensive?" 12,000 people participated, with 10,000 of them believing "It's too expensive and I won't use it unless necessary," 646 people considering it "a little expensive, but still acceptable," and 149 people saying "I don't think it's expensive."

To provide an example of shared power bank pricing in Shanghai, let's take the Oriental Pearl TV Tower as a reference. The surrounding shared power banks range from 4 to 6 yuan per hour, with a 24-hour maximum price of around 30 yuan, and a cap of 99 yuan.

Company	Price RMB/Hour	Price for 24hours	Cap price	Free time
Meituan	4-6RMB/hour	30RMB	99RMB	2 Minutes
Xiaodian	5RMB/hour	48RMB	99RMB	3 Minutes
Monster	5RMB/hour	30RMB	99RMB	5 Minutes
Shoudian	6RMB/hour	30RMB	99RMB	1 Minutes
Jiedian	4RMB/hour	30RMB	99RMB	2 Minutes
Near Oriental Pearl Tower

Near the Xintiandi area in Huangpu District, the price of shared power banks ranges from 4 to 7 yuan per hour, with a significant fluctuation in the 24-hour price, between 30 to 50 yuan, slightly higher compared to the area near Oriental Pearl Tower.

Company	Price RMB/Hour	Price for 24hours	Cap price	Free time
Meituan	7RMB/hour	50RMB	99RMB	0 Minutes
Xiaodian	4RMB/hour	50RMB	99RMB	5 Minutes
Monster	5RMB/hour	40RMB	99RMB	3 Minutes
Shoudian	6RMB/hour	32RMB	99RMB	5 Minutes
Jiedian	4RMB/hour	30RMB	99RMB	1 Minutes
Near Xintiandi, Huangpu District

In the street shops in Jiading District, Shanghai, the overall price of shared power banks has decreased, with a unit price of 3 or 4 yuan per hour, and most of them charging 40 yuan for 24 hours. Some brands offer lower prices, with a 24-hour price of 30 yuan.

Company	Price RMB/Hour	Price for 24hours	Cap price	Free time
Meituan	3RMB/hour	40RMB	99RMB	1 Minutes
Xiaodian	3RMB/hour	30RMB	99RMB	3Minutes
Monster	/	/	/	/
Shoudian	4RMB/hour	40RMB	99RMB	1 Minutes
Jiedian	4RMB/hour	48RMB	99RMB	1 Minutes
Street shops in Jiading District, Shanghai

In addition, a search through a mini program revealed that a beer bar in Jing'an District offers shared power banks for as high as 8 yuan per hour.

Apart from the high prices, the cost-effectiveness of shared power banks has been criticized. Unlike household power banks, the slow charging speed of shared power banks has become a consensus. Some netizens complain that while it only takes 20 minutes to fully charge their phones using a fast charger, using a shared power bank can only ensure that the phone does not lose battery.

Furthermore, the 24-hour price indicated by shared power banks has a low cost-effectiveness. Some netizens claimed that after the shared power bank is depleted, their phone's battery only increases by 30%.

 

In response to the price hike controversy, a representative from Xiaodian, one of the shared power bank brands, stated that the brand has not increased its prices this year and that there is no collective price adjustment in the industry. They also mentioned that Xiaodian's pricing is based on market prices and complies with regulations and market supply-demand rules.

 

When inquiring about the disputed prices of shared power banks with Meituan Charging and Guai Shou Charging customer service on behalf of consumers, Meituan Charging's customer service stated that they implement differentiated pricing strategies to align with the market. They consider industry quotations and specific merchant suggestions in the pricing process. The service price is market-adjusted and strictly follows the Price Law of the People's Republic of China. Consumers need to pay attention to the specific "billing rules" prompt and confirm whether they want use to the power bank service based on their actual needs.

Guai Shou Charging's customer service mentioned that due to various factors and maintenance costs in different regions, each store has different charging standards. They are agreed upon by regional agents and merchants, just like "prices being different whether in the valley or on the mountain."

 

Zhumang Technology owns two brands, Jiedian and Soudian. As of the time of writing, Zhumang Technology has not responded to the inquiry.

An anonymous shared power bank industry insider told the reporter that the shared power bank industry has been taken hostage by channels, with excessive marketization and competition. The industry has started recruiting agents and selling equipment, which guarantees a stable income for the brands but also leads to corresponding pricing issues. For example, Guai Shou Charging operates as a direct sales model, while Sianoud and Xiaodian operate as pure agency models.

 

CCTV has also pointed out in its report that the price of power banks is generally negotiated between agents and stores. Agents bear the rental costs of power banks, and stores only need to cover the electricity bills of the charging station. The final income is shared by the agent, store, and platform. Stores usually receive around 30% of the income, and stores with high foot traffic have more bargaining power. The platform earns about 10% of the income. This means that if a power bank costs 10 yuan per hour, the platform earns 1 yuan, the store receives 3 yuan, and the agent gets around 6 yuan. If a customer forgets to return the power bank and ends up purchasing it, the store typically receives 2 yuan, while the agent receives around 16 yuan.

The issue of shared power bank charges has long been a concern for regulatory authorities. In June 2021, the Price, Antimonopoly, and Internet Supervision departments of the State Administration for Market Regulation held an administrative guidance meeting, demanding that eight shared consumption brands including Meituan, Guai Shou, Xiaodian, Laidian, Jiedian, and Soudian rectify their practices, establish clear pricing rules, strictly implement transparent pricing, and regulate market pricing behavior and competitive behavior. At that time, the average price of these brands was 2.2 to 3.3 yuan per hour, with 69% to 96% of the cabinets priced at 3 yuan or below per hour. However, two years later, while the brands still strictly adhere to transparent pricing, the price of shared power banks has skyrocketed, becoming a new "assassin."

Since the beginning of this year, various localities have once again paid attention to consumer complaints related to shared power. bank In March, the Consumer Council of Shenzhen, Guangdong Province conducted an investigation into various brands of shared power banks. The investigation found that overcharging after returning the power bank was a major complaint from consumers.

 It is worth noting that despite these complaints, industry research reports still have a positive outlook on the recovery of the shared power bank market due to user demand. According to the "2023 China Shared Power Bank Industry Research Report" published by iResearch, the data for the whole year of 2022 showed conservative performance, with the industry size at 10 billion yuan. By 2023, with the steady recovery of residents' economic activities such as production and living, the industry will see a rebound in market demand, and the industry capacity is expected to increase to nearly 17 billion yuan, surpassing 70 billion yuan by 2028.