Now there’s Hello Transtech (formerly Hellobike), which may be valued at $4 billion if a rumored fundraising round (in Chinese) is successful.In a two-part series, I’ll lay out how Hello is bidding for profits amid the bikesharing meltdown—and its importance in Alibaba’s battle for mobility.Launched two years after Mobike and ofo started operations, Hello was the first bike-sharing operator to build up its business in China’s smaller cities.GGV Capital Managing Partner Fu Jixin also reckons that frequency of use in lower-tier cities is higher, with each bike averaging more than four or five rides per day.That compares to an average of three or less rides per bike in first-tier cities.These data points, plus a less-crowded competitive bikesharing landscape in lower-tier cities, gave Ant Financial confidence to drop $321 million in Hello in June 2018, minting a new unicorn.
Luckin Coffee has filed for an initial public offering, and we finally got to see its numbers.Chinese consumers may not like coffee that much.The whole company is predicated on a big opportunity to increase mass-market coffee consumption in China, and the filing is very clear about targeting three pain points to make this happen.It states that freshly brewed coffee consumption growth in China is limited by inconvenience (not ready to drink), high price, and variations in quality, hence the company’s strategy of building a huge network of outlets (more convenient), offering easy ordering by smartphone, and standardizing quality.Bike-sharing (Mobike) was based on this.But it certainly looks a lot cheaper (if you can get enough traffic per store).
What happened: Bike-rental startup Mobike, which is owned by lifestyle app Meituan-Dianping, has started to charge Shanghai users an extra RMB 20 (around $3) if they park a bike outside the company’s main “area of operation,” referring to a region largely encompassed by the the city’s Outer Ring Expressway.According to Mobike customer service, the fee can be returned if the bike is brought back to the city proper within 24 hours.Hellobike users are now also charged between RMB 5 and RMB 50 for parking a bike outside the main operating zone, depending on the city.Why it’s important: In a bid to keep its biking business afloat, earlier this month Mobike raised usage rates for users in Beijing.The move followed in the footsteps of fellow startup Bluegogo, which raised its prices a few days earlier.Bluegogo went bust in a spectacular fashion in 2017 before being acquired by ride-sharing titan Didi.
美团打车在上海、南京上线聚合模式 将试点更多城市 – Sina TechWhat happened: Meituan Dache, the ride-hailing arm of Chinese lifestyle services platform Meituan-Dianping, expanded its service offerings Friday using partnerships with a number of ride-hailing peers including Shoqi Limousine & Chauffeur, Caocao Chuxing, and Car Inc. in Beijing and Shanghai.Under the deal, Meituan Dache users in these two cities are offered an extended range of ride services to choose from, either from Meituan Dache’s own fleet of drivers or those of its partners.The current partnership focuses on improving user experience and won’t involve any subsidy campaigns, according to Chinese media.Why it’s important: Following a 57% jump in operating losses in the fourth quarter of 2018, the Chinese food delivery giant is exercising more prudence for business areas beyond its core food delivery service this year.The push into transportation, an area that Meituan bet on heavily last year with its Mobike acquisition and ride-hailing services, has slowed.
Bike-sharing start-up Mobike close to management buyout in Europe – The TelegraphWhat happened: Citing an email sent from Mobike to investors, The Telegraph reported that the company’s European arm is in the final stages of a management buyout from Meituan-Dianping, the bike-rental startup’s Chinese owner.Regional General Manager of Mobike Europe Paul Zhu and other senior executives are leading the initiative, sources said.While it has not yet been confirmed, the sale is expected to be worth $100 million.Mobike Europe is also reportedly planning on branching out into e-bike and scooter rentals in the region.Meituan is expected to keep a stake in the company after the sale.
I’ve spent a lot of the last month trying to understand Luckin Coffee.It’s an interesting dinner party question, but I think Luckin’s story is more than an individual company’s boom and potential bust—it represents a wave of aggressive startups bringing the online world’s “go big or go home” approach to physical assets.In this article, the third and final of a three-part Luckin series, I’ll explain the bigger issues that will stick with us whether or not the company ever breaks even.But what Luckin represents is far more interesting than its balance sheet.OYO, an Indian budget hotel chain valued at $5 billion, has grown to 330,000 rooms across 500 cities in five years and plans to be twice as big as the world’s current largest hotel chain by 2023.This drive for software-like scale over physical assets is driven by the growing acceptance and prevalence of “blitzscaling.” That’s Silicon Valley code for the science, art or witchcraft (take your pick) of rapidly building a company to capture large markets—usually relying on years of losses underwritten by investors.
Chinese bike-rental companies are taking action to bolster profitability amid huge losses and major cash flow constraints.Mobike announced on Monday that it will raise prices for bike rides in the capital city of Beijing, following a similar move by Bluegogo just days earlier.According to a notice dated Monday released on Mobike’s mobile application, Beijing riders will be charged RMB 1 (around $0.15) for a trip up to 15 minutes, and RMB 0.5 for every additional 15 minute increment.This is double the going rate, RMB 1 for a 30-minute ride.8, will help the company operate sustainably, according to the statement.Mobike also said the price increase will not apply to users who bought into its discount program, which charges flat rates for unlimited rides for one, three, and six months.
City regulators have, by now, heard lots of talk about the future of mobility from well-funded companies such as Uber, Mobike, Ofo, and Taxify who then caused major headaches.An ambitious, multi-billion dollar company thinks it can help solve one of the biggest problems facing humanity right now: Climate change.Too many people rely on driving their cars to get to work, the argument goes, and that's bad for city congestion, air pollution, the planet, and overall health and happiness.This bolshy, well-funded upstart says it has the right solution, if only your city would consider changing the rules.London's regulators, for example, may well be feeling jaded after several waves of venture-backed companies arrived promising to relieve the city's congestion and instead caused further headaches, or simply disappeared.The capital's transport regulator had a lengthy fight with Uber over safety issues, and ended up granting the company only a temporary licence for London.
Mobike, the bike-rental arm of Chinese food delivery and services platform Meituan-Dianping, will continue to be loss-making through to 2021 and be a drag on overall company profitability, a recent research report from equity firm China Tonghai Securities said.The bike rental-subsidiary, which the company acquired for RMB 18.1 billion ($2.7 billion) in April 2018, contributed RMB 4.6 billion, or over half of the company’s adjusted net losses in 2018.In addition to these persistent bike-rental related losses, mounting competitive pressures in its core food delivery segment, as well as tightening margins caused by cost overruns, mean it will take longer for Meituan to turn its fortunes around, the report added.Fiercer competition from is going to worsen Meituan’s position, analyst Esme Pau, who co-authored the report, told TechNode in an emailed CEO Wang Lei announced in 2018 the company’s strategy to raise its market share to 50% from 35% in 2018.Meituan is essentially a price-taker in its core food delivery business, given that merchants and users are price-sensitive, the March 19 report said.
According to the City of Paris, there are 15,000 free-floating vehicles of all forms and shapes in the city, from electric scooters to fluorescent bikes and motorcycle-like scooters.If the plan goes through and if you’re running a bike-sharing service, you’ll have to pay €20 per bike per year.Motorcycle scooters will be taxed €60 per scooter per year.Having less cars on the road is a great thing, but it has created some unexpected challenges.Bike-sharing services thrived when the city’s bike-sharing system was more or less useless during a network upgrade.GoBee Bike, oBike, Ofo and Mobike all launched their services in the streets of Paris.
When Mobike last week confirmed its intention to quit the Singapore market, it marked the end of an era.While a number of smaller players still operate in the market, the boom days for bike-sharing in the Lion City appear to be done – and another type of two-wheeler transport may be about to take its place.Support quality journalism and content.This content is exclusive to subscribers.Stay close to innovation in Asia by subscribing at just $0.27 per day.
Chinese bike-rental companies face more stringent scrutiny as the central government cracks down on misuse of user deposits, an issue that has recently sparked public concern on Chinese social media.In a draft rule released Tuesday by the Ministry of Transport, customers will be provided with personal bank accounts specifically for their deposits, while the companies are tasked with safeguarding the funds.The law defines how customer deposits should be handled, clarifying a legal gray area.It includes specific procedures for authorities to address companies that are not in compliance with the law.“The new rules will improve consumer right protections and help control public risk,” Chinese bike-rental company Mobike said (our translation) in a statement given to TechNode on Wednesday.The company said that it has allowed users to rent bicycles without a deposit since July.
“We can confirm that Mobike has submitted a proposal to Singapore LTA [Land Transport Authority] for a managed and orderly withdrawal from the market,” said a spokesman for Mobike owner Meituan Dianping.“We will work with LTA to explore all options, including the potential to transfer our operations or license to existing licensees to minimize impact to consumers,” the spokesman said, without giving a date for the startup’s exit.Under Singapore’s Parking Places Act, a bike-sharing license may only be surrendered with the LTA’s written consent.The LTA confirmed it is considering Mobike’s proposal for a “proper” exit from the city-state.It also said the company had withdrawn its earlier applications to expand its dockless bike fleet and to launch an e-scooter sharing service.Congratulations on completing yet another story on Tech in Asia.
Operating losses at Chinese food delivery and services platform Meituan-Dianping surged 57% year-on-year to RMB 3.7 billion (around $557 million) in the fourth quarter of last year, amid rising costs for its core food delivery business and as a foray into shared bikes via Mobike took its toll.While the company’s overall revenues almost doubled compared with the same period in 2017, food delivery revenue slumped in the fourth quarter, declining 1.5% quarter-on-quarter due to broader macroeconomic pressure and growing competition, according to the financial statement from Meituan.The cost of food delivery in the December quarter increased 53.6% year-on-year to RMB 9.5 billion, which management attributed to the mounting salary costs for its delivery fleet.In February, Meituan delivery drivers went on strike in several major cities across the country, with Chinese media reporting that conflicts become violent at times.The company denied any link between narrowing profits and striking delivery staff.Tencent-backed Meituan expanded its services in 2018 to include ride-hailing and bike-sharing, boosting annual active users 29.3% to more than 400 million in 2018 compared with 2017.
Meituan-Dianping saw its losses more than double in the final quarter of 2018, with “new initiatives” – including its ride-hailing business and Mobike subsidiary – accounting for much of the deficit.The Beijing-based company also indicated that it will fully integrate Mobike into its own platform, after recent reports that the bike-sharing service would cease operations in some ex-China markets.The Chinese “super-app” hauled in US$2.95 billion in revenue and US$667 million in gross profit in Q4, representing a year-on-year increase of 89 percent and 33.7 percent, respectively, according to Q4 results released yesterday.Its FY 2018 revenue clocked in at US$9.71 billion, while gross profit for the year stood at US$2.25 billion, marking annual growth of 92.3 percent and 23.6 percent in each.Meituan’s core food delivery and “in-store, hotel, and travel” businesses both managed to turn a profit.Since 2017, Meituan has launched pilot ride-hailing services in Nanjing and Shanghai, looking to enter a market almost utterly dominated by Didi Chuxing.
Bike-rental startup Mobike owned by lifestyle services company Meituan confirmed Monday that it is shutting down some of its Asia businesses, but denied that the closures are part of a larger exit strategy.On Saturday, TechCrunch reported that Mobike had given notice to 15 full-time operations staff employed across Singapore, Malaysia, Thailand, India, and Australia, citing numerous sources.The move was also said to affect “many more” contract and third-party workers employed by Mobike’s businesses across the Asia-Pacific region.Two TechCrunch sources said the layoffs were part of a company plan to eventually shut down all of its foreign operations.However, a Mobike representative told TechNode on Monday that the company currently has no plans to “adjust” businesses outside of Asia.The company released a statement Monday that it would close only “some” of its Asia businesses while exploring other opportunities.
TechCrunch reported last Friday that Mobike has scrapped operations across the Asia Pacific region as a key step towards a long-term plan to scale back its international business.On Monday, its parent company Meituan confirmed that the pioneer in China’s bike rental sector will shut down most of its foreign markets.“Mobike international business is undergoing restructuring, which will result in the closure of most international markets,” Meituan’s chief financial executive Chen Shaohu told analysts on a conference call on Monday.The decision came as Meituan plans to further narrow the operating loss of Mobike, added the executive.Mobike has lost 4.55 billion yuan ($680 million) since April 4, 2018 when Meituan, the app that aspires to be the “Amazon for services”, bought it out.That compares to the 1.5 billion yuan ($220 million) the bike service generated in revenues over the same period, notes Meituan’s earnings latest report.
Chinese dockless bike-sharing company Mobike said on Monday it will pull out of some Asian countries and re-evaluate its units in other overseas markets amid a wide-scale contraction in the market and the bankruptcy of top competitor Ofo.“We are currently seeking to optimize our international business.On that principle, Mobike will close in some countries in Asia [and] will continue to evaluate other countries and regions,” the Beijing-based company said.Mobike also said it will layoff at least 10 staff as part of its restructuring plan.It had earlier been reported that Mobike let go of its entire ex-China, Asia-Pacific operations team, including staff and contractors in Australia, India, Malaysia, Singapore, and Thailand, last week.
In a telling sign of the state of bike sharing, Mobike, a once red-hot startup that attracted billions in investment capital, is closing down all international operations and putting its sole focus on China.On Friday, Mobike laid off its operations teams in APAC, which entailed more than 15 full-time employees and many more contractors and third-party agency staff across Singapore, Malaysia, Thailand, India and Australia.More staff cuts are impending outside Asia that can include Europe and the Americans, according to two sources.Eventually, Mobike will only be operational in its native China, which accounts for the majority of its overall global business.The change of strategy encapsulates the struggle that Chinese bike sharing companies have experienced over the past year.Ultimately, though, Mobike wasn’t able to find a sustainable business model amid tough competition and tight financials.
This Report Focuses on the Global “Point-to-Point Bike Sharing Market” Status, Future Forecast, Growth Opportunity, Key Market and Key Players.The Study Objectives are to present the Point-to-Point Bike Sharing Development in RegionsRequest to Sample for this research report @ report presents a comprehensive overview, market shares, and growth opportunities of Point-to-Point Bike Sharing market by product type, application, key manufacturers and key regions and countries.This study considers the Point-to-Point Bike Sharing value and volume generated from the sales of the following segments: Global Point-to-Point Bike Sharing Market: key manufacturers: Mobike (China) OFO (China) BlueGoGo (China) Youon (China) Mingbikes (China) LimeBike (USA)