Automotive manufacturer FAW Group has paid an undisclosed amount for a 10% stake in Mobike Chuxing Technology, a car sharing service launched by China-based bicycle rental platform Mobike, Reuters reported on Sunday.
Mobike invested RMB2bn ($308m) to launch Mobike Chuxing last month. The service can be accessed through Mobike’s app, which has more than 200 million registered users across 180 cities according to a Wired report in November 2017.
FAW, which disclosed the investment in a stock exchange filing, will supply electric vehicles for Mobike Chuxing as part of a strategic cooperation agreement.
Mobike has raised more than $1bn in funding from investors including internet company Tencent, travel services provider Ctrip, hospitality chain Huazhu Hotels and Bertelsmann Asia Investments, a corporate venturing subsidiary of media group Bertelsmann.
The move will put the company head to head with Didi Chuxing, the overwhelming market leader in China, which is also an investor in Mobike’s biggest rival, Ofo. It comes days after Didi Chuxing agreed to buy bankrupt bike sharing platform Bluegogo.