Hong Kong’s first bike-sharing app Gobee.bike raises US$9 million in venture capital round

Hong Kong’s bike-sharing service Gobee.bike said on Thursday that it has raised US$9 million in its first venture capital round of funding, as the startup looks to finance its expansion in the city and overseas.

The Series A funding round was led by venture capital firm Grishin Robotics, with participation by the Alibaba Hong Kong Entrepreneurs Fund (AEF), a non-profit initiative by the world’s largest online shopping platform operator to nurture the city’s startups. Alibaba is owner of the South China Morning Post.

Gobee.bike launched in April, making bicycles available for hire in Sha Tin, Tai Po, Ma On Shan, as well as Tuen Mun, Fanling, Tseung Kwan O and Tung Chung. The company plans to expand to more areas in the New Territories, Lantau Island and Kowloon, with thousands of bicycles available for use by the end of August.

“Bike-sharing offers many benefits such as improved air quality and a healthier quality of life, which are in line with the government’s initiatives to make Hong Kong a greener city,” said Gobee.bike’s co-founder and chief executive Raphael Cohen. “With Gobee.bike’s green technology, we hope to contribute to the local economy and raise Hong Kong’s image as a green city.”

The funding raised will be used for enhancing the startup’s technology, research and development, as well as fund its global expansion, Cohen said.

Unlike mainland China, where almost 40 bike-sharing smartphone apps now compete for users around the country, Gobee.bike’s main competitor in Hong Kong are the bicycle rental stores that require their vehicles to be returned after use. Gobee.bike’s dockless business model allows users to leave their bicycles anywhere after use, making it a lot more convenience and versatile for the customer.