China’s two largest bike-sharing companies begin negotiations on a merger

Almaty. October 4. Silkroadnews – China’s two largest bike-sharing companies start talks on a merger, “Gears of Biz” business portal reported.
“Mobike and Ofo investors are in early talks to push China’s two largest bike-sharing startups into a merger, aimed at ending a costly competitive battle and creating a single dominant player in the fast-growing business, according to people familiar with the matter,” the report said.
Two companies’ total value is expected to exceed $4 billion. Currently, the talks are in a preliminary stage.
The companies are supported by two largest Chinese giants - Alibaba Group Holding Ltd. and Tencent Holdings Ltd. - which have experience of investing in competing start-ups, with their subsequent merger to save money. In car business, China’s bike rental startups are the world’s pioneers planning to expand overseas. The merger will give them more opportunities to take a strong position in the U.S., Europe and Asia.
Officials of Ofo company have not made any comments on this so far. Mobike seniors said that they do not consider the possibility of a merger.
“Mobike is the clear leader in the global bike sharing industry, supporting 30 million rides in 180 cities around the world every single day. We are fully focused on extending our global success,” the company said.