Can bike-sharing in China turn a profit? Survivors Meituan, Ant-backed Hello try by raising fees
- Meituan’s bike rental service, formerly known as Mobike, will raise the price for a seven-day membership to 15 yuan from 10 yuan
- The industry has also been hit by a shortage of raw materials, including steel, plastic and tires, which cost 10 per cent more in the first quarter
Chinese bike-sharing services that survived years of cutthroat price wars and a spectacular boom-bust cycle have decided to raise prices to try and turn a profit.
After losses amounting billions of yuan and the collapse of a slew of brands, including the fall of unicorn Ofo in 2019, the three biggest remaining firms – Meituan, Hello and Didi Chuxing – have curtailed expansion plans to focus on profitability.
Meituan’s bike rental service, formerly known as Mobike, will raise the price for a seven-day membership to 15 yuan (US$2.2) from 10 yuan. Memberships for 30 days and 90 days will be priced at 35 yuan and 90 yuan, up from 25 yuan and 60 yuan, respectively. The price hike was due to “increases in hardware, operations and maintenance costs”, Meituan said on its app. The new policy comes into effect at 11pm on Wednesday.
The membership plan allows users to ride any Meituan bike for the period without extra fees. Charges for one-off rides remain at 1.5 yuan per 30 minutes.
Hello, the mobility firm backed by Ant Group, has lifted its per-ride price to 2 yuan for the first 30 minutes, from 1.5 yuan, in certain cities including Changsha, the capital of Hunan province, and Foshan and Zhuhai, both in Guangdong province, according to Chinese media Beijing Daily.
Ant is the fintech affiliate of Alibaba Group Holding, owner of the South China Morning Post.
