Mobike and Bluegogo double rates in Beijing in bid to stay afloat

Chinese bike-rental companies are taking action to bolster profitability amid huge losses and major cash flow constraints. Mobike announced on Monday that it will raise prices for bike rides in the capital city of Beijing, following a similar move by Bluegogo just days earlier.

According to a notice dated Monday released on Mobike’s mobile application, Beijing riders will be charged RMB 1 (around $0.15) for a trip up to 15 minutes, and RMB 0.5 for every additional 15 minute increment. This is double the going rate, RMB 1 for a 30-minute ride.

The new rates, which go into effect Apr. 8, will help the company operate sustainably, according to the statement. Mobike also said the price increase will not apply to users who bought into its discount program, which charges flat rates for unlimited rides for one, three, and six months.

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