Chinese ride-hailing giant Didi Chuxing has agreed a deal to buy out struggling bike-sharing startup Blugogo, sources close to the matter told Caixin.
The two companies confirmed an agreement for the acquisition in late December, though the transaction is yet to be completed, sources said. Cash-strapped Bluegogo has suspended its business since November and has let go of most of its workers.
Established in November 2016, Bluegogo is one of dozens of bike-sharing startups that have sprung up in Chinese cities over the past two years. The company operated in major domestic cities including Shenzhen, Guangzhou, Nanjing, Chengdu and Beijing, according to company reports, and also expanded overseas to Los Angeles. But the company faced a capital crunch in late-2017 due to the fierce price wars in the industry.
Didi’s takeover of Bluegogo reflects the company’s long-held goal of expanding into bike-sharing. In 2017, Didi became the top investor in industry-leading Ofo with a 25% stake after participating in two funding rounds.
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