Meituan Bike (Mobike) SWOT and PESTLE Analysis
COMPANY PROFILE -Meituan Bike (Mobike)
Business Sector :Logistics
Operating Geography :China
About Meituan Bike (Mobike) :
Mobike, also known as Meituan Bike is headquartered in Beijing, China. It was founded by Beijing Mobike Technology Co., Ltd. and is a bicycle-sharing system with no stations. It is the world's largest shared bicycle operator by the number of bicycles, making Shanghai the world's largest bike-share city in December 2016. Meituan-Dianping, a Chinese web business, bought it for $2.7 billion in April 2018. It develops mobile apps for users to find and use bicycles to travel anywhere. Davis Wang Xiao Feng, Hu Wei Wei, and Xia Yi Ping founded Mobike on January 27, 2015. Parent company Meituan-Dianping announced a name change from Mobike to Meituan Bike on January 23, 2019, as part of an ongoing integration. As of April 2022, Mobike’s net worth was $4.48 million.
The Unique Selling Point or USP of Mobike is that it solves the last mile problem and incarnates a revolutionary lifestyle. It's also a considerably healthier mode of transportation that helps enhance urban design by reducing congestion and pollution. The mission statement of Mobike reads, “Our objective is to provide an economical means of shared transportation for convenient short urban excursions while reducing congestion and the carbon imprint of cities."
Meituan Bike (Mobike) Revenue :
RMB 179.1 billion- FY ending 31st December 2021 (y-o-y increase 56%)
RMB 114.8 billion - FY ending 31st December 2020
Competitive Analysis of Meituan Bike (Mobike)
1. Mobike's aggressive strategy has led to the company's quick growth. 2. Expertise in developing specially designed bi-cycles will help in capturing more market share | 1. Mobike loosing significant number of bikes to theft and vandalism will impact its profitability. 2. Worker’s strike over payment issues will hamper company’s operations 3. Meituan facing antitrust investigation will damage its reputation 4. Mobike closing several of its overseas operations has impacted Meituan’s business opportunity |
1. Strategic expansion is possible as the global micro mobility industry is expected to grow at a substantial rate 2. Growing consumer awareness about various health benefits from bicycling will positively impact the company 3. Growing popularity of e-bikes will provide business opportunities | 1. Worker shortages in China’s factories can lead to increasing operational costs 2. Intense competition from various mobility offering businesses at regional, national, and international levels 3. Congestion has worsened as a result of the bike-sharing disputes. |
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Detailed SWOT Analysis of Meituan Bike (Mobike)
Strength
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Weakness
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Opportunity
1. Strategic expansion is possible as the global micro mobility industry is expected to grow at a substantial rate: The global bicycle sector is quite profitable, and it is expected to develop at a healthy 5.02 percent CAGR. People all over the world are becoming more and more health-conscious, which is driving up demand for bicycles as a form of transportation. The preference for e-bikes over traditional bicycles is growing and has entered the mainstream. Bicycles are now available in a variety of styles, including all-terrain, hybrid, and road bicycles, among others. Bike sharing market is also expected to grow by 6%. The increasing demand for urban transportation has resulted in an increase in the number of vehicles on the road, resulting in significant traffic jams and high pollution levels. To address the aforementioned expanding problem, key regions such as Asia-Pacific, North America, and Europe have widely adopted the bike-sharing program. Thus, as the preference for bicycle to commute shorter distances is on the rise, Meituan can leverage upon this potential market and plan its strategic expansion.
2. Growing consumer awareness about various health benefits from bicycling will positively impact the company: Cycling is a low-impact, healthy activity that may be enjoyed by people of all ages. It's also enjoyable, inexpensive, and environmentally friendly. Riding to work or the store is one of the quickest ways to include regular exercise into one’s daily routine. People all over the world are becoming more and more health-conscious, which is driving up demand for bicycles as a form of transportation. Bicycling's multiple health benefits, such as cardiovascular fitness, muscle strength, and flexibility, improved joint mobility, decreased stress levels, better posture and coordination, strengthened bones, and lowered body fat levels, have grown in popularity as public bike-sharing programs and people's attitudes toward a healthy lifestyle have increased. Thus, the rising consumer awareness regarding multiple health benefits will provide increasing business opportunities.
The remaining section under "Opportunity" is available only in the 'Complete Report' on purchase.
Threat
This section is available only in the 'Complete Report' on purchase.
Major Competitors :
- Lyft,
- Uber,
- Neutron Holdings Inc,
- Dba Lime,
- Youon Bike,
- Bird Rides,
Major Brands :
- Bike Sharing Services
- Food Delivery Platform
- Transportation Services
- Dining Services
- Hotel bookings
- Movie Tickets
- Travel Services
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References used in Meituan Bike (Mobike) SWOT & PESTLE Analysis Report
1. Tech Crunch - https://techcrunch.com/2019/05/08/execs-at-mobike-the-bike-sharing-startup-are-raising-20m-to-buy-out-the-european-business-by-end-of-june/
2. Investor.AIS - https://investor.ais.co.th/news.html/id/677172/group/newsroom_press
3. City Fix - https://thecityfix.com/blog/solve-chinas-bike-sharing-woes-hangzhou-shanghai-turn-bluetooth-geofencing-hui-jiang-harshita-jamba/]
4. PR News Wire - https://www.prnewswire.com/news-releases/meituan-acquires-mobike-one-of-the-worlds-largest-bike-sharing-companies-300624166.html
5. Rest Of World - https://restofworld.org/2021/china-delivery-apps-strike-labor-meituan/
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Meituan Bike (Mobike) SWOT and PESTLE analysis has been conducted by Ipsha Bhattacharya and reviewed by senior analysts from Barakaat Consulting.
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