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Briefing: Mobike doubles down on India as ofo departs
China’s Mobike plans big push in India as rival Ofo pulls out —Nikkei Asia Review
What happened: Mobike is considering moving into 10 more Indian cities within the next 18 months. Mobike has been in Pune since May. Although Mobike’s parent company, Meituan Dianping, did not reveal how much it plans to invest, the Indian market is a major focus according to Mobike’s Indian CEO Vibhor Jain. The company is also considering manufacturing bikes in India in addition to using bikes made by Taiwan’s Foxconn.
Why it’s important: Mobike’s Indian expansion plans come after as its rival ofo started pulling out of the country in June. Ofo has already left or is in the process of leaving India, Germany, the US, Spain, Australia, and South Korea. It will be interesting to see if Mobike’s expansion plans will follow ofo’s departure in other markets. The company has already made moves to strengthen its market position in China by allowing users to ride without deposit fees. Ofo’s last chance might be an acquisition by ride-hailing giant Didi which already owns bike-rental platform Bluegogo. Rumors about the acquisition have already begun to circulate but for now, ofo seems intent to remain the only Chinese independent bike rental company.