Multiple media outlets reported that Tencent—a major shareholder in both Mobike and Meituan—actively pushed for this deal. Some commentators called Mobike “a gift for Meituan’s IPO.” According to media reports, Meituan may seek an IPO in Hong Kong as early as 2018 at a valuation of $60 billion.
Meituan already provides a myriad of services, including restaurant reviews and booking, food delivery, hotel and travel booking, and movie tickets.
The deal signals Meituan’s ambitions in mobility—it recently expanded into ride-hailing as well—and further intensifies its rivalry with Didi Chuxing, which has also aggressively expanded into bike sharing by rolling out its own bike sharing service, backing Ofo, and acquiring Bluegogo. Didi is reportedly expanding into food delivery as well.
Note: Didi Chuxing is a GGV portfolio company. Hans Tung, Managing Partner at GGV Capital, is a personal investor in Dianping, which merged with Meituan.
$9.5B – Exit valuation of Ele.me, acquired by Alibaba this week
Ele.me—which means “hungry yet?”—employs an army of delivery people on bikes across the country and competes with Tencent-backed Meituan-Dianping, which just acquired Mobike.
As part of Alibaba’s New Retail strategy, the company has poured money into offline logistic networks and brick-and-mortar stores. In November, Alibaba invested $2.87 billion into China’s top hypermart operator Sun Art Retail Group. Alibaba also operates dozens of offline grocery stores called Hema that promises local delivery within 30 minutes.
A War: AutoNavi and Ctrip Enter Ride-sharing
In the same week, Ctrip—China’s largest provider of online travel services—announced it has obtained a license to provide ride-hailing services in Tianjin, allowing it to operate nationwide. Ctrip already offers airport pickup, car rental, and chauffeur services in many markets around the world.
Meanwhile, the ambitious Meituan-Dianping continues its foray into ride-hailing. In a recent speech, Meituan CEO Wang Xing said Meituan already has a third of the ride-hailing market in Shanghai and Nanjing.
Note: Didi Chuxing and Ctrip are GGV portfolio companies.
996 Podcast: Brad Bao of LimeBike on Tackling America’s Last-Mile Problem
We interviewed Brad Bao, the co-founder and chairman of LimeBike, a fast-growing dockless bike sharing company in the US based in San Mateo, California. Founded in January 2017, LimeBike currently operates in more than 50 different markets in the US, and has provided more than 2 million trips since it launched. Before founding LimeBike, Brad was an investor at Fosun Kinzon Capital,and previously helped launch Tencent’s US operations as the company’s first employee outside of China. LimeBike is an example of a phenomenon known as “copy from China”—importing innovative business models from China into the US.
In this episode, we discuss Brad’s pivot from an investor searching for a bike-sharing deal to the founder of a bike-sharing company, why bike-sharing can work in the US, and why being cross-border is a crucial advantage in this space.