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.
Chinese businesses love to post ads where they shouldn’t be.
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.
As the bike-rental craze cools down, so do Chinese firms’ ambitious globalization plans.
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.