The rate increase is part of parent company Meituan’s broader profitability push.
Mobike Europe branch is reportedly planning on branching out into e-bike and scooter rentals in the region.
Mobike has started to charge Shanghai users an extra RMB 20 (around $3) if they park a bike outside the company’s ‘area of operation.’
Meituan-owned Mobike also denied that layoffs in Asia are part of a larger exit strategy.
Company’s best short-term strategy is to direct users to its profitable services such as travel.
As the bike-rental craze cools down, so do Chinese firms’ ambitious globalization plans.
A Bloomberg article found that Mobike operation details in the recent Meituan Dianpin filing were at odds with previously made public claims by the company.
Chinese businesses love to post ads where they shouldn’t be.
Hellobike’s new prices are more expensive than taking the bus in Beijing, which may be a blow to its business model.
The Chinese bike-rental firm will also become a distinct business group within the lifestyle services company.