Apple Manufacturer Foxconn Invests Millions in Cycling
BEIJING, China – Chinese bike-sharing services have entered in fierce competition between providers and investors. Yesterday, bike-sharing service Mobike signed an exclusive strategic partnership with Foxconn Technology Group, known as the manufacturer of Apple iPhones, in a move to double its annual bicycle production capacity to more than 10 million units.
As strategic investor Foxconn will set up production lines for Mobike’s rental bicycles. Foxconn is targeting an annual production capacity of 5.6 million units. “The deal will help us to expand our presence in China as well as in overseas markets,” claims Mobike. Local media state that Mobike has raised USD 215 million in its latest funding round for supporting the bike sharing craze in China’s biggest cities.
More than 10 bike-sharing companies
“It’s going to be a fierce fight in the bike-sharing industry,” said Chen Lin, assistant professor of marketing at the China Europe International Business School yesterday in a Financial Times report. “There are more than 10 bike-sharing companies now with international funding.”
She points out that, “the bicycle services are more competitive than the car-sharing industry was in the days of Uber versus Didi, and it’s more welcome by the government, so less regulated.” It is curious to see that bike-sharing service provider ofo is backed by Didi, while Mobike’s founder Davis Wang was an Uber executive in Shanghai.