At a symposium in Beijing, ride-hailing app Didi Chuxing (滴滴出行) CEO Cheng Wei (程维) said that public bike sharing company ofo will make a bid for Taiwan’s Giant Bicycles (TWSE: 9921), mainland Chinese media reported.
If the rumor is true, it would be ofo’s first foray into bicycle manufacturing. Cheng noted that bike-sharing programs are becoming more popular as people look to drive less. Expanding from bike sharing to bike manufacturing would improve ofo’s ability to enter new markets and serve more customers while potentially improving profit margins.
ofo has not yet responded to Cheng’s remarks.
Beijing-based ofo was founded in 2014 and Didi Chuxing is a major investor in the company. Giant is one of the largest bicycle manufacturers in the world and provides Taiwan with the popular YouBikes. Giant has a presence in more than 50 countries.
Didi Chuxing is a privately-held company in China with major investors including Tencent, Alibaba, and Baidu. In August 2016, the company acquired Uber’s operations in China for about US$1 billion. Last month, Didi Chuxing was valued at US$50 billion.