As an icon of sharing economy and product service systems, bicycle sharing is gaining an increasing global popularity, yet there is little knowledge about the environmental performance of this emerging traveling mode. To seek the answer to the question, the paper employs a survey-based method and a life cycle assessment (LCA) approach. We first conduct a questionnaire-based survey to identify the changes in traveling modes after the introduction of shared bicycles. The survey results show that the use of shared bicycles is more popular among young and low-income populations, and shared bicycles are predominantly used to replace walking and bus-taking. Based on the survey results, we model the environmental impacts of the changed traveling behaviors and the life cycle of shared bicycle with the aid of Gabi software. The LCA results shows that bicycle sharing is currently an environmentally friendly practice, as it brings environmental savings in all the indicators except metal consumption. Further, the results of sensitivity analysis show that aging, rising rental fees, and increasing volume of shared bicycles would impart negative impacts on the environmental performance of bicycle sharing. The findings of this work facilitate the management and development of bicycle sharing.