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Bike-sharing services
Tech

The rise and fall of Mobike and Ofo, China’s bike-sharing twin stars

  • Mobike has officially halted operations of its mobile app and WeChat mini programme, fully merging under its parent company Meituan
  • The Beijing-based brand and rival Ofo used to dominate China’s bike-sharing industry, but their cash-burning tactics failed to pay off

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Mobike bicycles parked on the street in the Futian district in Shenzhen in 2019. Photo: SCMP / Roy Issa
Coco Fengin BeijingandJosh Yein Hong Kong
About five years ago, the streets of Beijing and Shanghai were dominated by fiery yellow and orange bicycles from bike-sharing start-ups Ofo and Mobike as they battled for the feet and minds of China’s busy commuters.
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Those have since been replaced by cool teal and baby blue – the signature colours of newer entrants Didi Bike and Hellobike – as the industry moves towards more sustainable growth. After aggressive expansion in their first few years, former market leaders like Ofo have few bikes remaining: a stark reminder of the excitement, but also chaos, of big tech’s proxy wars.
Already part of local services giant Meituan since it was acquired by the on-demand services giant in 2018, Mobike officially halted operations of its mobile app and WeChat mini programme at midnight last Monday, although its bikes – what is left of them rebranded under Meituan’s name – will remain accessible through Meituan’s app.

Ofo is also a shadow of its former self, having never recovered from digging itself into a financial hole two years ago. Early this year, it abandoned its bike-sharing interface and transformed itself into a shopping app, offering to compensate the millions of users it still owes deposit money with rebates for shopping in lieu of refunds. Its bikes are rarely seen on China’s streets anymore.

Mobike’s announcement last week marks the end of a duopolistic era for China’s bike-sharing industry, which exploded in popularity a few years ago.

In 2015, Mobike and Ofo were considered pioneers in popularising dockless, GPS-connected bikes rented through apps. Unlike traditional bike rentals with fixed parking stations, Mobike and Ofo bikes could be locked and unlocked using apps, allowing them to be left and picked up from anywhere in the cities they operated in.

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