In a surprise announcement, China’s largest bike-rental companies, Mobike and ofo announced plans to merge last night, local media is reporting. For the time being, both companies will operate independently until the merger is complete. Unlike other recent mergers in China’s sharing economy, the merger will see the creation of a new company, to be called Mofo.

“After deep consideration and encouragement from friends and allies, the founders felt they were wasting too much investor money. In addition, their parents were worried about their health,” said a person familiar with the matter.

The move from both companies comes as a shock as many expected the competition to continue for some time. Indeed, the typical cycle in China’s hot sectors has historically been burning cash to capture users and market share until a winner emerges.

Start your free trial now.

Get instant access to all our premium content, archives, newsletters, and online community.

Monthly Membership

Yearly Membership

What you get

Full access to all premium content and our full archives

Members'-only newsletters

Preferential access and discounts to all TechNode events

Direct access to the TechNode newsroom

Start your free trial now.

Get instant access to all our premium content, archives, newsletters, and online community.

Monthly Membership

Yearly Membership

John Artman

John Artman is the Editor in Chief for TechNode, the leading English information source for news and insight into China’s tech and startups, and co-host of the China Tech Talk podcast, a regular discussion...