I think you guys missed the other important news
http://www.bbc.com/news/business-41197341 (Beijing bans shared bikes)
For the very same reasons, it will never work in India too. Unless we make some concerted effort to regulate and improve cycling infrastructure, it will never work. Imagine, if (a big IF) even a 1% of the Bangalore traffic were cyclists, the kind of chaos it will create. Most riders can just ride straight, leave alone navigating through main traffic. Mixing cyclists along with main traffic is a big hazard. Till now, it is mostly okay because only the enthusiastic folks ride and most of them are pretty good for the city traffic.
For China, it became serious as people don't leave cycles in appropriate places. So, it was a matter of time before the programme gets killed. Because, killing is easier than making the infrastructure.