Hundreds of angry customers gathered outside the Beijing headquarters of dockless bike-share firm Ofo this week to demand their deposits back. The firm has asked users to be patient, but more than 12.3 million people were waiting for refunds on Friday, according to its app.
Founded in 2014 as a university project, Ofo was valued at $2bn in July last year, but rapid expansion and a fiercely competitive industry has led to severe cash flow problems.
The company and its founder Dai Wei have now been put on a government black list for failing to pay debts.
In a recent letter to staff Dai wrote that he had considered filing for bankruptcy.
“During the past year, we have borne immense cashflow pressure. We have to return users’ deposits, pay back our suppliers, and keep the company running. We have to turn every yuan into three.”
Zhu Wei, an associate law professor at China University of Political Science and Law, told China.org.cn that deposits for shared bikes should be more secure.
"Currently, there's not enough regulation," he said.
In August of last year, guidance from China’s Ministry of Transport suggested that the use of bike deposits should be supervised by transport and finance departments.
Some believe that part of Ofo’s problem is that dockless bike sharing now makes less sense as a standalone service as users are looking for greater integration with other forms of transport.
CNN reports that in April Mobike was acquired by Meituan Dianping, while the less well known Hellobike entered into a partnership with digital payments giant Ant Financial. Both Mobike and Hellobike now feature within Chinese apps offering a far wider range of services, such as ride-hailing and food delivery, and benefit from access to hundreds of millions of users.
In July, Mobike said users no longer needed to pay deposits for its services and Hellobike now operates in the same way.
Indeed, I was drawing from personal experience – I don't use it that often but it's such a nice bit of infrastructure that I sometimes go out of my...
Except socialism doesn't work like that in real life. It's the capitals countries that try to look after those in need, and the average person's...
2020/2021: Bike companies place large orders to attempt to fill pandemic orders which go unfulfilled due to massive lead times. Leaving many bike...
'I racked up thousands in Ulez fines - I misread the rules and my dog ate the letters'...
It's the mass that's the issue. Two people on a petrol powered scooter can really mess up a cyclist. Also the fact so many of the petrol scooters...
"if we’ve got to fly there we’re not going" *applause from over here*
"Strumpjumper"...sounds like a euphemism for something else 🤔
The new RH tubes claim to solve that issue, but price and availability is a problem. I tried to get some to try out, but they went out of stock on...
Cough - cough - Clevedon seafront! - cough cough
Those calipers arent the prettiest. Makes them look like Post-mount.