(Yicai Global) Dec. 14 -- Two more investors in Beijing Bikelock Technology Co., known as Ofo, have said they'd welcome a merger with Beijing Mobike Technology Co. as China's bike-sharing market becomes ever-more saturated and cut-throat.
"I believe they're going to merge," said David Zhang, founder and managing partner of Matrix Partners China, at a session of the Wise 2017 investor summit in Beijing yesterday. "In fact, I hope they merge." Xu Xiaoping, founder of ZhenFund, echoed his opinion.
The two leading players have denied speculation they may combine, but many investors believe it is just a matter of time. Mobike and Ofo have been the darlings of venture capitalists as their ubiquitous bicycles spread through China's cities, putting millions of units back on the streets and clogging up sidewalks for pedestrians. But boom has turned to bust for some in the 'Uber for bikes' business. Bluegogo, the country's number three player, went bankrupt last month.
"It has been repeatedly proved in China's internet era over the past few years that it is impossible to defeat the other player when two rivals are very close in market share," Zhu Xiaohu, an Ofo investor and managing director of GSR Ventures Management Co., said on a previous occasion. "A merger is the best option."