The logo of Faw is seen on the car maker’s booth at the 2016 Moscow International Auto Salon in Moscow, Russia, August 24, 2016. REUTERS/Maxim Shemetov
January 7, 2018
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)
