After making huge losses for Meituan, Mobike raises prices

Will the new charges reverse the fortunes of the firm?

China’s bike-sharing platform Mobike announced on Friday that it will implement a new pricing policy from April 8 onward in Beijing.

The new charges—one yuan (USD 0.15) for the first 15 minutes, then half a yuan for each quarter of an hour thereafter—will only apply to residents of the Chinese capital.

Bluegogo, which is managed by ride-hailing firm Didi Chuxing, put in place the same scheme in all cities where it operates last week, on March 21.

Meituan acquired Mobike in April 2018. That acquisition generated RMB 1.51 billion (US$225 million) in revenue in the 2018 fiscal year but made a loss of RMB 4.55 billion (US$678 million), accounting for  more than half of Meituan’s entire losses.