Date
16 July 2018
Mobike, whose backers include Tencent and Sequoia, is branching out into the car-sharing business. Photo: Bloomberg
Mobike, whose backers include Tencent and Sequoia, is branching out into the car-sharing business. Photo: Bloomberg

FAW Car buys 10% stake in Mobike’s new car-sharing unit

FAW Car Co. Ltd. (000800.CN) said it is taking a 10 percent stake in Chinese bicycle-sharing startup Mobike’s new car-sharing unit Mobike Chuxing Technology Co., Reuters reports.

Mobike Chuxing was set up in December with registered capital of 20 million yuan (US$3.08 million).

With the strategic investment, FAW will provide electric cars for the project.

FAW, in a statement, said it had signed a deal to buy the stake but did not disclose financial details.

The investment will not have a significant impact on FAW’s earnings. Mobike, whose backers include Tencent (0700.HK) and Sequoia, has 100 million users and supports roughly 25 million rides a day.

Its top competitor, ofo, raised US$450 million in May last year from a range of investors, including Chinese ride-sharing service Didi Chuxing.

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CG

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