Rumor: Didi Chuxing Acquires Dockless Bike Sharing Service Bluegogo
ChinaTimes, 1/02/18
Chinese mobile taxi booking and car hire service app Didi Chuxing is rumored to have signed an acquisition agreement with Tianjin-based Luding Technology, operator of dockless bicycle-sharing service Blugogo, according to an inside source at Didi Chuxing. Bluegogo's original technology and supply chain teams are rumored to be reporting to Didi Chuxing for work.
Bluegogo's senior management confirmed to reporters that the company had indeed signed an acquisition agreement with Didi Chuxing on December 31, however Didi Chuxing has withheld comment on the matter. Reporters attempting to call Bluegogo CEO Li Gang were not able to reach him as of the publishing of this article.
The previously mentioned source at Didi Chuxing stated that they recall both parties beginning negotiations as early as November 2017. According to one industry insider's analysis, Didi Chuxing's low-key acquisition of Bluegogo is primarily for the acquisition of its operating license. Currently, the Chinese government is no longer issuing new bicycle-sharing operating licenses.
According to a source at Didi Chuxing, the company has previously attempted to develop its own bicycle-sharing brand and is rumored to be continuing to incubate the brand, but these rumors have not been officially confirmed.
Bluegogo had previously entrusted all of its future operations to Sichuan-based bicycle-sharing company Biker Technology due to a lack of funding. In September 2016, Didi Chuxing made a USD 8-digit strategic investment into bicycle-sharing brand Ofo.
Editor's Note: For more information on this topic, please see Bluegogo CEO: Agency 'Biker Technology' to Take Over Bluegogo Operations, MD 11/16/17,
Didi Chuxing Invests USD 8-digit Sum in Bicycle Sharing App 'ofo' , MD 10/23/17 issue, and Mobile Bike Sharing App 'ofo' Completes USD 130 Mln Series C , MD 10/10/16 issue.
Keywords: Li Gang wireless Didi Chuxing Bluegogo bicycle sharing Luding Technology M&A
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