The Chinese bike-rental firm will also become a distinct business group within the lifestyle services company.
This is the first time for Mobike to pull out of a city because of antisocial behavior.
The company started registering a series of trademarks back in April.
As the bike rental cools down, industry insiders start to ask how well the bike ban fits current circumstances.
Uber has no plans to bring its bike rental scheme to China but it is considering other Asian countries.
While Ofo’s legal troubles pile up, millions of users are reportedly still waiting for their deposits.