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Bicycles via Chinese bike-sharing companies like Ofo, Mobike as well as Hellobike
While Ofo as well as Mobike have a heavy presence in China’s top cities, Hellobike is actually trying to take market share inside country’s smaller, more rural cities. The start-up says which is actually present in 300 Chinese cities as well as claims which users take around 20 million rides on their bicycles daily.
He explained the decision to move into the smaller cities was motivated by the fact which Hellobike was a lot smaller than its rivals. “which’s actually less competitive to do business inside lower-tier cities, when Ofo as well as Mobike were pretty much concentrating inside tier-one cities,” he added.
As the some other two companies make their push into China’s lower-tier cities, Chen said which Hellobike has “huge advantages” in areas of daily operations, maintenance as well as capital deployment efficiency. The company also does not charge users a deposit to use its bike-sharing service which, Chen explained, was “one of the key things” people think about before deciding on whether to hire a bike.
To be sure, despite the lucrative nature of the industry, both Ofo as well as Mobike have struggled in recent months as a result of vandalism, theft as well as poor maintenance of the bicycles. The Financial Times reported which Ofo has been burning about $25 million a month, while Mobike loses about $50 million monthly. Ride-hailing platform Didi Chuxing is actually reportedly in talks to buy Ofo, according to the FT.
Chen declined to comment on any potential merger between Ofo as well as Hellobike, which are both backed by Alibaba.
“Anything is actually a possibility however, basically, we’re competing with Ofo the way we are competing with Mobike. Simply because we have overlapping masters doesn’t mean which we don’t compete,” he said.