But nobody's going to develop bike technology unless there's profit to be had. Best case, bike production becomes orders of magnitude cheaper due to all the investment and it becomes more effective to donate old/decommissioned bikes to those in need.
Reminds me of the successful campaign by Toms: https://www.toms.com/improving-lives
I bet these companies could do something similar once established.
Yes, I imagine that may damage some of the bicycles. It's still much cheaper then alternative means of storage. It's just the cost of dealing with industrial quantities of goods - your local big box stores lose or damage some of their merchandise all the time, for similar reasons.
If I've seen half a dozen of them in use that's probably aiming high. Granted, that was in the last half year, when it was winter, but still.
You just see them rot away with broken parts torn off, decaying.
The bikes are of such shitty quality (an expert on bikes estimated a price of $50, max, for the parts) and are so heinously ugly that people wouldn't take them for free. Let alone buy them at auction.