I am currently living in Shanghai and I use Mobike, Ofo, or 赶赶单车 to get to work everyday. I have logged over 250km between the services.
This article is largely unfair. The city has large swaths of sidewalk established as bike parking zones. I can almost always find a bike zone within 10-50m. Furthermore, there are almost always parking attendants and security guards outside of malls and subway stations ensuring that bikes are parked correctly. Even when these people aren't present, I rarely ever see bikes anywhere but the bike zones. And as much space as the bikes take up, it is NOTHING compared to the parked cars along the streets.
Furthermore, I see company trucks collecting and relocating bikes multiple times per week. They are constantly shifting bikes of high supply to areas of demand. There are certain times of day (eg Saturday night at the Bund) where there are untold legions of bikes, but car traffic is flowing well.
Many of the trips that I've taken on a Mobike were out of convenience. In American cities the fastest mode of transportation is almost always a car. However, because the bikes are essentially door-to-door with no delay, I can almost always beat a hired car because there is no delay and I can zip between waiting traffic.
Chinese cities are being strangled to death by the crazy growth in car traffic. There has been insane immigration to cities and average income has gone way up. The net effect is a lot more car usage. Every taxi driver I have complains about the ever-worsening traffic conditions, year-over-year trip times increasing etc.
Bike sharing does A LOT to alleviate this by providing a convenient, quick, and cheap ($0.10-0.20 / 30min) method to travel. This is all ignoring the obvious ecological impact of the many tons of CO2 not released by the saved hydrocarbon fueled trips.