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Tokyo-listed <a href="http://dealstreetasia.com/tag/line-corporation" target="_blank" rel="noopener">LINE Corporation</a> has made an undisclosed investment in the Japanese subsidiary of bike-sharing service provider <a style="color: #000080;" href="http://dealstreetasia.com/tag/mobike" target="_blank" rel="noopener">Mobike</a>. Following the transaction, LINE will own less than 20 per cent of Mobike Japan.</article>

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Tokyo-listed <a href="http://dealstreetasia.com/tag/line-corporation" target="_blank" rel="noopener">LINE Corporation</a> has made an undisclosed investment in the Japanese subsidiary of bike-sharing service provider <a style="color: #000080;" href="http://dealstreetasia.com/tag/mobike" target="_blank" rel="noopener">Mobike</a>. Following the transaction, LINE will own less than 20 per cent of Mobike Japan.
The deal will also see LINE Corporation, which owns Japan&#8217;s popular mobile messaging app LINE, enter into a strategic partnership with Mobike Japan to promote the adoption of smart dockless bike-sharing in Japan.
According to a media release, the two companies will collaborate to integrate Mobike into the LINE app as the exclusive bike-sharing service, enabling LINE users to rent a Mobike bike directly from the app.
In an official statement, Takeshi Idezawa, President and CEO of LINE Corporation, commented: “The LINE messenger app is used as a communications tool by more than 71 million monthly users in Japan. Through this capital investment and strategic business partnership with Mobike, we can support the expansion of Mobike’s service in Japan by leveraging our network of local governments and private companies that make use of our various activities and services.&#8221;
In cities where Mobike is present, LINE users will be able to unlock a Mobike bike simply by scanning a QR code with their LINE app and pay using their LINE Pay account or other payment methods.
Mobike will be competing with Ofo for market share in Japan, given that earlier this year, <a href="https://www.dealstreetasia.com/stories/softbank-china-bike-sharing-ofo-service-japan-80133/" target="_blank" rel="noopener">Ofo partnered with SoftBank</a> to offer its bike-sharing services across the country.
Mobike Japan has already launched in Sapporo, with plans to roll out its services to Fukuoka this week. The year 2018 will see it expand its business operations to more cities around Japan, with strong support from local municipal authorities.
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This latest partnership will strengthen its presence in Japan and could serve to extend it to other destinations, given the proliferation and presence of LINE across Southeast Asia as well as the integration of the service into the app.
The partnership furthers Mobike’s global strategy to integrate into local markets and collaborate with strategic partners and local talent to capitalize on the local knowledge, experience and resources. The deal comes at a time when <a href="https://www.dealstreetasia.com/stories/chinas-bike-sharing-bubble-shows-signs-of-strain-with-bluegogo-winding-up-86729/" target="_blank" rel="noopener">China&#8217;s bike-sharing space is under pressure following the collapse of Bluegogo</a>.
A number of analysts perceive the growth of bike-sharing as the <a href="https://www.ft.com/content/cc1107e8-cb5f-11e7-ab18-7a9fb7d6163e" target="_blank" rel="noopener">latest in a series of Chinese technology bubbles</a>, with rapid growth fuelled by venture capital funding that may eventually result in a collapse.
While the spread of bike-sharing systems has ecological and public transport benefits, the sector in China could soon see <a href="https://www.bloomberg.com/view/articles/2017-11-24/china-s-communist-party-needs-to-save-bike-sharing" target="_blank" rel="noopener">intervention from Beijing</a> and consolidation as the two dominant firms in the space &#8211; Mobike and Ofo &#8211; are reportedly in <a href="https://www.dealstreetasia.com/stories/china-mobike-ofo-investors-merger-talks-83415/" target="_blank" rel="noopener">discussions for a potential merger</a>. Together, Ofo and Mobike have raised $2.2 billion in capital.
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<a style="color: #ff0000;" href="https://www.dealstreetasia.com/stories/china-bike-rental-mobike-ofo-cash-cows-gadfly-83477/">China’s bike rental firms Mobike, Ofo are actually secret cash cows: Gadfly</a>
<a style="color: #ff0000;" href="https://www.dealstreetasia.com/stories/mobike-launches-bike-sharing-service-in-malaysia-81844/">China’s Mobike expands SE Asia footprint, launches bike-sharing service in Malaysia</a>
<a style="color: #ff0000;" href="https://www.dealstreetasia.com/stories/chinese-bike-sharing-startup-ofo-enters-north-american-market-80573/">Chinese bike-sharing startup Ofo enters North American market</a>
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LINE Corporation has made an undisclosed investment in Mobike's Japanese subsidiary in return for a less than 20 per cent stake. 

LINE Corporation picks a minority stake in Mobike Japan

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LINE Corporation picks a minority stake in Mobike Japan

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