Mobike to close most overseas operations to reduce losses, says Meituan CFO

Chinese bike-sharing startup Mobike will “restructure” its global operation and exit most of its overseas markets in order to reduce operating losses, parent company Meituan’s CFO Chen Shaohui told investors on Monday.

Chen’s remark on Mobike’s planned exit came after the announcement of Meituan’s record loss on Monday. The food delivery giant’s annual net loss soared to RMB 8.5 billion (US$1.26 billion), a steep rise of nearly 200% from the previous year. In particular, Mobike contributed to RMB 4.5 billion of Meituan’s losses after being acquired for US$2.7 billion last April.

On Monday, Mobike confirmed it would “shut down operations in some Asian countries in the near future” and “continue evaluating operations in other countries and regions” in a statement to KrASIA.