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Briefing: Bike-rental firm Mobike to spin off European arm
Mobike prepares to spin off European arm – Financial Times
What happened: Chinese bike rental company Mobike is reportedly preparing to sell off its $100 million European operations. Chinese tech giant Meituan, whose business is almost entirely focused on the Chinese market, acquired Mobike earlier this year. A source told the Financial Times that Meituan that this focus may be the reason behind such a move. The company plans to maintain a minority stake in the European business.
Why it’s important: Mobike and ofo pedaled into the international market at the beginning of 2017. But as the bike-rental craze cools down, so do their ambitious globalization plans. Mobike withdrew from locations in the US and UK earlier this year. The company is under investigation by data regulators in Germany over suspicions it may have breached EU data laws. Its competitor, cash-strapped ofo, has pulled back from a series of overseas cities in South Korea, Germany, Australia, and India, while both struggle to maintain momentum in the Chinese market.