Bike-Sharing “Gold Rush Over”

It is no secret that China’s bike-sharing market is booming. The companies with the most market share, Ofo, Mobike and Hellobike, are fiercely competing against each other. These companies must now decide whether to merge to gain market share and reduce costs, or to invest more money in the hope of outlasting competitors. “The gold rush is over,” states iResearch analyst Shi Rui. “Smaller companies won’t survive unless they get more funding. As investors become more cautious, merging with a well-capitalized bigger player can increase their chances of survival.”