Mobike Teams With FAW Car to Pilot Car-Sharing Business
Liao Shumin
DATE:  Jan 08 2018
/ SOURCE:  Yicai
Mobike Teams With FAW Car to Pilot Car-Sharing Business Mobike Teams With FAW Car to Pilot Car-Sharing Business

(Yicai Global) Jan. 8 -- Bike-sharing behemoth Mobike, owned by Beijing Mobike Technology Co., is now piloting a car-sharing business, with one of its partners established domestic car manufacturer FAW Car Co. [SHE:000800]. The venture is located in Gui'an New Area in Guiyang, capital of China's southwestern Guizhou province.

FAW Car signed a strategic cooperation agreement with Gui'an New Area administrative committee and Mobike affiliate Mobike Chuxing Technology Co. in Gui'an New Area on Jan 6. FAW Car intends to make a capital increase in Mobike Chuxing Technology, after which FAW Car will hold a 10 percent stake in the car-sharing unit.

Beijing Mobike Technology Co. and Gui'an New Area-based Xinte Electric Vehicles Industrial Co. set up a joint venture with Mobike in Gui'an New Area, public information shows. Mobike is the largest shareholder in the venture with a 75 percent stake. The project, which is government-led, is part of Guizhou's CNY10 billion (USD1.5 billion) new energy industry fund project, the Securities Times reported.

FAW Car, as a manufacturer and supplier of Mobike Chuxing Technology's products, is collaborating with the latter on vehicle sales by producing custom-made vehicles, per the agreement. Mobike Chuxing Technology and FAW Car will share operating experience, operation models, customer data and other related resources, as well as related strategic assets, such as financial services and after-sales networks.

Mobike's first fleet of shared cars rolled into Guizhou's Gui'an New Area on Dec. 29. This consisted entirely of electric vehicles, including those made by Beijing Automotive Group Co. (BAIC Group) and FAW Group Corp. The first echelon of Mobike shared cars will run in Gui'an New Area and the main urban area of Guiyang city.

Mobike started its first car-sharing pilot project in Gui'an New Area because it is a national-level new district established with the approval of China's cabinet, the State Council, is the first national Big Data industrial development cluster area, the first national Big Data (comprehensive experimental zone, a national modern services industry pilot and the first mass innovation and mass entrepreneurship pilot demonstration base, public information shows.

Mobike's official app will also add car-sharing to offer future access to all its services via a unified channel, China News Service reported.

Follow Yicai Global on
Keywords:   MSCI,Mobike,Sharing Car