Although bike-sharing services have gained tremendous popularity in China by presenting themselves as champions of sustainable urban transportation and an example of a sharing economy, the lack of a sufficient recycling and maintenance process has been pointed to as one of the main contributors to its environmental impact and has called the sustainability of bike-sharing into question. The adoption of a circular economic model for this service is proposed to remediate these impacts. This Life Cycle Assessment study will estimate the effects of a circular economy model adoption through increased recycling rates and recycling efficiency of bike-sharing services. The results find that increase in circularity of the bicycle sharing system does bring reduction to nearly all environmental impact categories; however, it is inconclusive if the rise in circularity brings an overall reduction in environmental impact. The current reduction is limited by existing recycled materials and environmental impacts caused by the recycling process. Further research is needed to confirm the finding in this study.