Photo credit: Mobike
China’s leading provider of on-demand online services, Meituan Dianping, has acquired Mobike, a bike-sharing company, for a reported $3.4 billion. The move comes as both Mobike and its main rival Ofo have struggled to dominate the Chinese and overseas markets.
Mobike executives said in a letter to employees that competition was increasingly fierce. The deal will enable Meituan and Mobike, both backed by Tencent Holdings, to share resources, technology and operations. Mobike will maintain its brand and management team following the deal.
A few days ago, Alibaba acquired full control of Chinese food delivery platform Ele.me, a rival to Meituan, for $9.5 billion.
🚲 Read also: How Meituan’s $3.4b Mobike buyout redefines the bike-sharing battleground
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