Mobike Denies Plans to Acquire Competitor
Yicai Global
/SOURCE : Yicai
Mobike Denies Plans to Acquire Competitor

(Yicai Global) June 23 -- Media reports this morning suggested Beijing Mobike Technology Co., the first and largest smart bike-sharing firm, is due to complete its purchase of Unibike, a smaller shared bike provider based in China's southeastern city of Xiamen.

The move would mark the first merger or acquisition within China's rapidly growing bike-sharing industry, but a Mobike official has already shut the rumor down.

"We are always highlighting the continuous improvement of user experience and our expansion into other cities," said Wang Xiaofeng, chief executive. "But we have no plans to purchase another shared bike provider."

Insiders told Tencent Venture that Mobike would finish the acquisition, Tencent Holdings Ltd. [HKG:0700] said today. The insider didn't disclose the value of the transaction, but did say that Mobike was putting up CNY100 million (USD14.6 million) in Unibike's A-round financing.

The two providers will synergize in the future, the insider said, adding that Mobike would target the high-end market while Unibike caters to low-end users without the need for a security deposit.

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Keywords: UniBike , Mobike , Bike Sharing , M&A