Alibaba fund invests in Hong Kong bike-sharing service

The round was led by Grishin Robotics, a VC firm focused on companies in smart hardware, robotics, and the internet of things (IoT). Gobee will use the new capital for research and development aimed at improving its technology, and to prepare for geographic expansion. The company hopes to enter North America, Europe and other parts of Asia once it has proved the concept in Hong Kong.

Gobee was founded in February and launched its service in April. The company says its app has been downloaded over 100,000 times and it has thousands of bikes for rent. Its service is similar to that of China-based peers Ofo and Mobike. Customers download the mobile app, which tells them where bikes can be found nearby. Bikes can be unlocked by scanning their QR codes and rented at a cost of HK$5 per 30 minutes.

Both Ofo and Mobike have raised several rounds of PE funding: Ofo’s backers include Alibaba Group, while Mobike is supported by rival internet giant Tencent Holdings. They are the best-known players in China’s booming bike-sharing market. Smaller rivals include Bluegogo, a service launched by smart bike manufacturer SpeedX that recently raised RMB400 million ($58 million) from domestic GP Black Hole Capital.

Mobike and Ofo are both in the early stages of international expansion, with Mobike present in the UK and Singapore and Ofo in those markets plus the US, and could prove a challenge to Gobee as it goes for the same customers. However, Gobee believes the Chinese market will keep both players too busy to capitalize on other market opportunities the way Gobee can, due to its focus on global expansion.

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• Topics
• Greater China
• Consumer
• Technology
• Early-stage
• Hong Kong (China)
• Alibaba Group
• TMT
• Transportation
• Venture