China startup Mobike teams up with Foxconn to hike output

FILE PHOTO: A Mobike sign is seen in Guangzhou, Guangdong Province, China, October 8, 2016. REUTERS/Stringer/File Photo

China’s Mobike said it has joined hands with Foxconn to double the number of bikes it plans to make this year to 10 million, adding that the Taiwanese manufacturing giant had also taken a stake in the bike-sharing start-up.

Mobike, which is backed by Tencent and Warburg Pincus LLC, said that this year it will manufacture 5.6 million with Foxconn and the rest at its own plants with unspecified partners – a huge jump over 2016 when it made more than 400,000.

Terms of the deal with Foxconn, known formally as Hon Hai Precision Industry Co, were not disclosed.

Mobike, seen as one of most aggressive Chinese firms that allows users to find and rent bicycles through a smartphone app, said it is hoping the move will help it expand faster by lowering the unit cost of each bicycle.

The start-up raised at least $315 million in two funding rounds since October and says it is open to further investment. It has not disclosed valuations.

Founded in 2015, Mobike currently operates in 13 cities across China and has forged investor relationships with Huazhou Hotels Group and Chinese online travel site Ctrip.com International in a bid to reach travellers.

It also has international ambitions and has opened an office in Singapore.

The deal with Foxconn will see Mobike bicycles made in both new and existing Foxconn plants. Manufacturing bikes in the United States and Europe was also possible, Chief Executive Davis Wang told Reuters.

“Right now we are working with Foxconn to evaluate the possibilities,” he said, adding that the company plans to meet demand in different markets with local manufacturing.

Foxconn, which is one of China’s biggest employers and makes Apple’s iPhones among other products, said on Sunday that it may set up a display-making plant in the United States in an investment that would exceed $7 billion – a plan that comes as new President Donald Trump prioritises U.S. jobs.

Also Read: Sharp mulls listing its LCD venture with Foxconn

Foxconn says in preliminary discussions to expand US operations

Reuters

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.