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.
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.
Rising costs for Meituan’s core food delivery business drove fourth quarter losses.
Chinese bike-rental firms, Mobike and Hello Transtech, expressed their willingness to enter the bidding.
The law comes as concern mounts about the financial stability of a number of mobility firms in the rental economy sector.