China’s FAW Car buys 10 percent stake in Mobike’s new car-sharing unit

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China's FAW Car buys 10 percent stake in Mobike's new car-sharing unit


2018-01-07 15:52:28

BEIJING (Reuters) – FAW Car Co Ltd (000800.SZ) said on Sunday it was taking a 10 percent stake in Chinese bicycle-sharing startup Mobike’s new car-sharing unit Mobike Chuxing Technology Co.

Mobike Chuxing was set up in December with registered capital of 20 million yuan ($3 million).

With the strategic investment, FAW will provide electric cars for the project.

FAW, in a statement, said it had signed a deal to buy the stake but did not disclose financial details.

The investment will not have a significant impact on FAW’s earnings. Mobike, whose backers include Tencent (0700.HK) and Sequoia, has 100 million users and supports roughly 25 million rides a day.

Its top competitor, ofo, raised $450 million in May last year from a range of investors, including Chinese ride-sharing service Didi Chuxing.

Reporting by Josephine Mason and Meng Meng; Editing by Susan Fenton

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