Chinese ride hailing giant Didi merges bike-sharing operations
Jun 20, 2019 (China Knowledge) - The seven-year-old ride-hailing giant Didi Chuxing has merged its two bicycle-sharing businesses, mainly the ordinary bicycle and the electric-powered pedal-assist bikes. The company hopes to boost the efficiency and competitiveness of its app-based transportation services.
This move of integrating the management of the two units will improve business efficiency. It will also facilitate better cooperation between bicycle manufacturers and local governments.
Didi entered the bike-sharing business last year by effectively taking over the operations of Bluegogo, a bike-sharing service that fell out of business in 2017. It e-bike sharing service is available at Hangzhou and Shenzhen.
China’s sharing economy is facing huge pressure. Likewise, in the bike-sharing service market, companies have to deal with fierce price competition and somethings causing profits to fell below expectations. The occurrences of abandoned bikes cluttering city streets have ballooned into a social issue.
Didi Chuxing has grown into China’s top provider of ride-sharing services through mergers with other domestic players and the acquisition of Uber Technology’s Chinese business. Although the giant has yet to turn profitable, Softfounder’s founder and CEO Masayoshi Son is considering an additional USD 1.6 bln in Didi.
The Chinese giant has raised a total of USD 20.6 bln in investment. It is reported that Didi is considering an initial public offering.
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