(Yicai Global) Sept. 25 -- China's two biggest bike-sharing enterprises may link up. Beijing Mobike Technology Co. and Beijing Bikelock Technology Co. (Ofo) can only profit by merging, Zhu Xiaohu, managing director of Ofo-backer GSR Ventures Management Co., said at the 3rd Fudan Chief Economist Forum while talking about the 'bike-sharing battle.'
The landscape of the sector has stabilized, with Ofo and Mobike cornering almost 95 percent of the market. The two groups have significant operating cost and they can only make money by merging, Zhu said.
From the point of view of capital, it is not so important which party instigates such a deal, Zhu said.
Policies are the biggest variable in the bike-sharing industry. More than 10 cities including Beijing, Shanghai, Guangzhou, Shenzhen and Wuhan have recently suspended shared-bike rollouts.