Mobike denied market rumors that it is merging with Ofo Published: 2017/10/3 21:01:42

Mobike on Tuesday denied market rumors that the bike-sharing start-up is in talks with its competitor Ofo over a potential merger, a spokesperson of the company told the Global Times.

"Mobike is not considering a merger and is fully focused on expanding its global network and improving user experience," the company said in a statement sent to the Global Times on Tuesday, stressing that the platform is also "the clear leader" in the global bike-sharing industry, with its service entering 180 cities around the world and supporting 30 million rides every day.

The comment comes after media reports circulated on Tuesday, which cited sources close to the matter as saying that Ofo and Mobike investors are in early talks to push China's two largest bike-sharing platforms into a merger. The two market leaders' combined valuation may exceed $4 billion after the deal, the Bloomberg reported on Tuesday.

A merger could create a single dominant player in the fastest-growing industry and put an end to the intense and costly turf war between the two companies, said the report. Also, "a truce at home" would help the two companies to gain ground in foreign markets such as the US, Europe and other parts of Asia.

Ofo and its main investor, venture capital GSR Ventures, had not responded to an interview request from the Global Times as of press time. 

Zhu Xiaohu, president at GSR Ventures, said at a forum in September that "as operation of Ofo and Mobike still costs a large amount of money, the only way to make a profit in domestic bike-sharing industry is to merge the two industry leaders," news website reported. 

Posted in: COMPANIES

blog comments powered by Disqus