In China's shared bicycle service industry, many start-ups have consumed hundreds of millions of dollars in competition for leading major urban markets. In the process, thousands of shared bicycles are everywhere in some city streets.
The deal will allow Alibaba's investment ofOo to be more deeply integrated into the ecosystem of the e-commerce giant. Just a few months ago, ofo’s competitor, Mobike, was acquired by the instant online service provider, Meituan, for $2.7 billion.TencentIt is an investor in Mobike.
The source said that Didi, which already holds the shares of Ofo, has hired a third-party agency to conduct due diligence on the business and finance of the startup. After the due diligence is completed, it is found that the business of theo is worse than expected, then the offer may be It will be lowered and may even be cancelled.
A spokesperson for Didi Travel and Ant Financial declined to comment, and ofo did not immediately respond to the request for comment.
The Softbank Group is a Didi traveler and a shareholder of Alibaba. Last year, the Japanese technology giant also cooperated with ofo to let ofo's shared bicycle service into Japan.
In addition to fierce competition in the Chinese market, Mobike and ofo are still expanding overseas. Beijing-based ofo in itswebsiteIt said that the company operates more than 10 million shared bicycles in more than 20 countries.
However, media reports in recent weeks have stated that ofo has reduced or closed its operations in markets such as Australia and India.
In March of this year, ofo said it received a $864 million round of financing, which was led by Alibaba, which is also considered to be the largest amount of financing that a shared bike startup could receive at one time.