Didi Chuxing to take over troubled bike-sharing startup
Chinese ride-hailing giant Didi Chuxing has agreed to acquire cash-strapped bike-sharing startup Blugogo to further expand its business footprint, sources close to the matter told Caixin.
The two companies signed an agreement on the deal in late December, although the transaction hasn’t been completed, sources said. Bluegogo halted its business beginning Nov. 20, and most of its workers are gone.
Didi and Bluegogo didn’t respond to Caixin’s requests for comment.
Didi’s takeover of Bluegogo reflects the car-hailing giant’s longtime goal of expanding into the booming bike-sharing sector. In 2017, Didi participated in two rounds of fundraising for bike-sharing industry leader Ofo, becoming the top investor of Ofo with a 25% stake.
Sources close to Didi said the company is doing research on developing its own bike-sharing service.
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