This research looks into the internet bike rental (a newly-emerged bike sharing system) with the aim of demonstrating its development in Hangzhou and identifying the potential solutions that could alleviate the current issues it encounters. The theoretical frameworks of Strategic Niche Management (SNM) and Multi-Level Perspective (MLP) are applied to analyze the breakthrough of the internet bike rental in Hangzhou. On the basis of these two frameworks, this research starts from the analysis of the external environment (landscape and regime) of the internet bike rental to identify the factors that could either stimulate or impede its development. Then, this research looks deep into the development of the internet bike rental to analyze the (niche) internal processes, identify the issues it currently encounters and provide suggestions to address these issues.