Ofo on verge of bankruptcy | Business News | SupChina

Ofo on verge of bankruptcy

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Ofo, one of two companies that came out on top of the bike-sharing gold rush of 2017, is now on the verge of bankruptcy, the Financial Times reports (paywall):

  • “I’ve thought countless times…of even dissolving the company and applying for bankruptcy…in order to keep the company running we have to turn every renminbi [Chinese yuan] into three,” the company founder, Dài Wēi 戴威, wrote in a letter to employees.
  • “More than 10 million users…have requested deposit refunds, with the company possibly owing in excess of RMB 1 billion ($145 million) to its riders,” TechNode says. That’s twice as many people as the Ofo app showed in a virtual line for refunds yesterday, Manya Koetse tweeted.
  • Yesterday, “more than 100 people lined up outside ofo’s office. They were instructed to leave their personal information, including banking details, and promised refunds within three days.”
  • For more, read “How Ofo spun out of control: An ex-employee’s account” on Tech in Asia, or an essay (in Chinese) titled “The debacle of bike sharing: The craziest mistake in the history of Chinese entrepreneurship,” recommended in Jiayun Feng’s Chinese Corner earlier this month.
Lucas Niewenhuis

Lucas Niewenhuis is an associate editor at SupChina who helps curate daily news and produce the company's newsletter, app, and website content. Previously, Lucas researched China-Africa relations at the Social Science Research Council and interned at the Council on Foreign Relations in New York. He has studied Chinese language and culture in Shanghai and Beijing, and is a graduate of the University of Michigan.

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