Mobike prepares to spin off European arm

Mobike, the Chinese dockless bike-sharing company, is preparing to spin off its European arm, which it is valuing at $100m. Mobike is owned by Chinese ecommerce company Meituan Dianping, which is backed by Chinese tech group Tencent and made its debut on the Hong Kong stock exchange in September. Just five months earlier, Meituan bought Mobike in a deal that gave the bike-sharing company an enterprise value of $3.7bn. According to one industry expert, the lossmaking Mobike was burning $50m a month earlier this year. A person with knowledge of the company’s plans said: “Meituan has no international division of any shape or form and probably doesn’t want one, and when it acquired Mobike it acquired the international arm.

Mobike has 200,000 of its silver and orange bikes across six countries in Europe, and claims to have more than 200m registered users worldwide. However, it has suffered from vandalism in some cities, including Manchester, where it pulled out in September. It has also shrunk the area its bikes can operate within in London as part of a strategy shift in the capital. Mobike recently ended its contract with Cycle.land, a company that handled its operations in parts of London, after the company formed a joint venture with Mobike’s rival Youon. Mobike’s internal operations team will take over the maintenance of its bicycles from Friday.

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