Mobike refunds user deposits in China, in a bid to pedal away with market share

Chinese bike-sharing company Mobike has said it will be ditching the traditional deposit scheme for all of its Chinese users, in a bid to win over the market amid fierce competition.

Existing customers will be able to claim back their deposits from Mobike, which was priced at 299 yuan (£34).

Mobike said in a statement that the move was designed to set a new “no-threshold, zero-burden and zero-condition deposit free standard for the entire bike-sharing industry”.

Read more: Citymapper adds ‘floating transport’ into its London maps app

Its main competition in China is the yellow dockless bike company Ofo, which is backed by tech giant Alibaba and ride-hailing firm Didi Chuxing.

Mobike was acquired by Chinese e-commerce platform Meituan in April this year, in a deal reportedly valued at $2.7bn (£2.03bn).

The company will soon be expanding into the so-called e-bike industry – bikes that are electronically powered and require charging stations – with bikes that can last up to 70km per charge and reach a top speed of 20km per hour.

Read more: Uber gears up for battle as Lyft buys biggest bike-sharing firm in the US