Uber's Chinese Rival Didi Buys Into Bicycle-Sharing Startup Ofo – Bloomberg

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Didi Chuxing, China’s reply to Uber, already dominates automotive-hailing within the nation. Now it’s reverting to bicycles, as soon as the nation’s historically most popular mode of conveyance.

Didi is investing tens of tens of millions of dollars in ofo, a bikes-on-demand startup conceived two years in the past on the grounds of Beijing’s prestigious Peking University as a scholar challenge, and which now payments itself because the nation’s largest bicycle-sharing platform. The firm based by school alumnus Dai Wei operates virtually 70,000 shiny-yellow bikes and handles half one million rides every day throughout 20 cities, Didi stated in an e-mailed assertion.

Bicycles stay commonplace in Chinese cities and in rural areas regardless of quickly rising vehicle possession, notably as a result of a automotive stays out of attain of many city dwellers. Cities like Hangzhou, residence to Alibaba Group Holding Ltd., sponsor bike-sharing packages, and growing smartphone use has paved the best way for bike-sharing startups akin to ofo and rival Mobike. Ofo’s enterprise is centered round school campuses, and works by way of Tencent Holdings Ltd.’s WeChat. Users scan a code from their smartphones to unlock parked bikes and enter their vacation spot and pay by way of the messaging app.

Didi will contemplate folding bike sharing into its community as the 2 discover collaboration prospects, it stated. The firm, which lately clinched a deal to purchase Uber Technologies Inc.’s operations in China, is claimed to be value $35 billion and is now contemplating methods to increase its enterprise regionally and overseas.

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