Chinese bike sharing firm Ofo proposes merger with smaller rival Hellobike
- A deal would make the merged entity the dominant player in the highly competitive Chinese bike sharing market
- Local governments in Beijing, Shanghai, Shenzhen and Guangzhou have banned companies from introducing new bikes to reduce disruption
Shanghai-based bike sharing company Hellobike said on Friday its bigger rival Ofo has proposed a merger between the two companies.
A deal would make the merged entity the dominant player in the market but would also be complementary because Ofo focuses on first tier Chinese cities while Hellobike is stronger in second and third-tier cities.
Chinese media reported on Friday that Hellobike would be the one acquiring Ofo.
“However, we think the most important thing for Hellobike now is to improve ourselves and serve our customers better,” the Hellobike spokeswoman said.
Hellobike did not elaborate on when it received the merger proposal or if talks are ongoing between the two companies.
An Ofo spokesman did not immediately comment.
Ofo and Meituan Dianping-owned Mobike are the top two players in the country’s bike sharing market, with figures from May, the latest available, showing 11.3 million and 9.3 million monthly active users (MAU) respectively, according to market researcher Trustdata.