Mobike removes last hold over user behavior as it trials deposit free in 100 cities

Mobike is extending deposit-free, credit-free bike rentals to a hundred cities. After launching the deposit-free system in Hefei, Hangzhou, Dongguan and other cities in May, it will now spread to a hundred areas–including second and third-tier cities–covering more than half its China cities. The first tier cities of Beijing, Shanghai, Guangzhou, and Shenzhen will not be part of the new scheme, labeled a trial by Mobike.

Competition is intensifying after new entrants have shaken up what had become a two-horse race between Mobike and ofo. Removing deposits could prove effective in poaching existing customers of a rival who don’t want to fork out another hefty deposit.

Read our report: As bike rentals cool, ofo chooses to stand alone

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