Didi Chuxing invests 'tens of millions' in Chinese bike-sharing platform

September 26, 2016 2:12 AM EDT

Logo of Didi Chuxing is seen at its headquarters building in Beijing, China, May 18, 2016. REUTERS/Kim Kyung-Hoon/File Photo

Get inside Wall Street with StreetInsider Premium. Claim your 2-week free trial here.

SHANGHAI (Reuters) - Chinese ride-hailing service Didi Chuxing on Monday said it has invested "tens of millions of dollars" in the country's largest bicycle-sharing platform ofo, as it looks to provide its users with more transportation options.

Didi, which bought the Chinese unit of rival Uber Technologies Inc's [UBER.UL] last month, said it would look to include bicycles as an option on its app as part of plans to develop a transport ecosystem. Users of its app can currently only book taxis and private cars.

"If it's only two or three miles away, or the traffic is crowded, I can just ride a bike and go," Didi spokesperson Liang Sun said.

In recent decades bicycles have waned in popularity as China's middle classes turned to cars. But interest has revived as city streets become clogged with traffic and more people become health-conscious amid rising obesity levels.

ofo, whose name resembles a bicycle, was originally established as a student start-up project in the campus of Peking University two years ago.

Users of its platform can book bicycles for as little as 0.5 yuan ($0.075) a ride and the company is now China's top bike-sharing platform.

Other start-up bicycle sharing platforms in China include Shanghai-based Mobike, which was founded by a former Uber executive.

The deal also comes as Didi recovers from a costly battle with former rival Uber China [UBER.UL]. The firm is buying Uber's China operations to create a $35 billion ride-hailing giant.

(Reporting by Jackie Cai and Brenda Goh; Editing by Stephen Coates)

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In

Related Categories


Add Your Comment