(Yicai Global) Nov. 30 -- Wang Xiaofeng, the founder and chief executive of China's leading bike-sharing brand Mobike, owned by Beijing Mobike Technology Co., said during a public speech that Mobike will never merge with its arch-rival Ofo Inc., adding that he expects more differentiated products in the future.
Mobike has sought to gain users' trust through product differentiation and emotional bonding, Wang remarked.
With these two cards in place, the company can survive independently with no need for a merger, he said, as TMTPOST reported yesterday. The current industrial pattern of bike-sharing has gelled in China, with Mobike and Ofo together carving off 95 percent of the market share. However, a great deal of money is required for operation each month, and thus a merger presents the only route to profitability, an Ofo investor once publicly observed.
China's bike-sharing market is quite saturated after skyrocketing growth this year. Beijing, Shanghai, Guangzhou, Shenzhen and many other cities have now all slapped bans on new bikes in a challenge to sustainable industry development. Both Mobike and Ofo have cast covetous eyes on the overseas market starting this year and both have proposed the goal of expanding to 200 cities around the world. The German capital of Berlin became the 200th city in Mobike's global network on Nov. 22 in commemoration of the bicycle's invention in Germany 200 years ago.