Meituan to purchase bicycle-sharing startup Mobike for over $3 billion
Category: #world  By Saipriya Iyer  Date: 2018-04-05
  • share
  • Twitter
  • Facebook
  • LinkedIn

Meituan to purchase bicycle-sharing startup Mobike for over $3 billion

Meituan Dianping, a Chinese firm offering online retail products & services for local consumers, is reportedly planning to purchase Mobike, a bicycle sharing startup, in a deal worth USD 3 billion. Reportedly, the takeover deal values Mobike’s assets at nearly USD 2.7 billion, while assuming its debts at nearly USD 700 million. According to the joint statement issued by Mobike & Meituan, Mobike is likely to function as an independent unit even after its acquisition.

Incidentally, this move is viewed as a strategic step by Tencent, a major investor in both Meituan and Mobike, to maximize its share across the ecommerce sector. The company may have backed the business decision to counter the expansion moves of its rival Alibaba, claim sources. Earlier this month, Alibaba had completely acquired Ele.me, a key business rival of Meituan, at USD 9.5 billion. Both Alibaba & Tencent Holdings are competing to dominate the online payment business through their respective platforms Alipay and WeChat Pay respectively.

Seemingly, a cut-throat competition is being witnessed among these two online retail Chinese giants for leading the online services market, including activities such as offering bikes on rent online and online food delivery services as well as eCommerce activities. In the share bikes service portfolio, Alibaba is the largest investor in Ofo, a bicycle-sharing firm in Beijing and a fierce business rival of Mobike.

Mobike & Ofo have expanded rapidly across the bicycle sharing business by exploring new avenues of the ride-sharing sector. These firms are said to have followed the footsteps of ride-hailing apps such as Uber and Airbnb. Reports state that their bicycles are unlocked through the use of smartphone app.

Currently, the cost of bicycle sharing services are very less and users need to pay only USD 0.15 per hour in China for the bicycle-sharing services. Mobike has claimed that it has over 200 million customers who make over 30 million bicycle trips each day.



About Author

Saipriya Iyer

Email: [email protected]   

Saipriya Iyer

Saipriya Iyer develops content for Market Size Forecasters, Algosonline, and myriad other platforms. A computer engineer by profession, she ventured into the field of writing for the love of playing with words. Having had a previous experience of 3 years under her bel...

Read More

More News By Saipriya Iyer

Vela Diagnostics gains EUA for ViroKey™ SARS-CoV-2 RT-PCR test v2.0
Vela Diagnostics gains EUA for ViroKey™ SARS-CoV-2 RT-PCR test v2.0
By Saipriya Iyer

Vela Diagnostics has recently announced that the U.S. FDA has granted an EUA (Emergency Use Authorization) for its ViroKey™ SARS-CoV-2 RT-PCR Test v2.0 in the United States. This automated p...

Foodics enters Egypt market by setting an on-ground presence in Cairo
Foodics enters Egypt market by setting an on-ground presence in Cairo
By Saipriya Iyer

Saudi Arabia-based restaurant management platform Foodics, has announced that it has entered the Egyptian market by creating an on-the-ground presence in Cairo.  The expansion comes after the company raised USD 4 ...

Food Emulsifiers Market to Witness an Appreciable Growth By 2026
Food Emulsifiers Market to Witness an Appreciable Growth By 2026
By Saipriya Iyer

This advanced report on the Food Emulsifiers Market includes of an in-depth overview of this business sphere. Alongside, details of the present market size and status have been given. The report aims to provide substantial updates on the market, p...