Bike-Sharing Startup Ofo Faces Very Unclear Future

By That's, July 2, 2019

0 0

A court ruling in Tianjin has determined that bike-sharing company Ofo has “basically no assets” and is therefore unable to repay its debts to suppliers and users, according to Quartz.

Bicycle supplier Tianjin Fuji-Ta Bicycle sued the shared bike company for roughly USD36 million earlier this year, but the court ruled that Ofo could not repay the Tianjin company, noting that whatever assets Ofo does have are currently frozen. 

In December of last year, thousands of Ofo users lined up outside the company’s Beijing headquarters, demanding a refund for their bike deposits. The disgruntled crowd was the voice for over 10 million registered users who were requesting refunds, which would have cost the firm USD170 million. Ofo has also recently withdrawn its overseas operations in the US, Japan and Singapore. 

Experts noted vandalism and theft as well as a slowing Chinese economy for reasons that the startup has quickly unraveled. The Beijing-based firm has previously stated that it would continue to operate normally. 

The court ruling came just weeks after Guangzhou approved 400,000 new shared bikes to used in the city.  While three competitors – Mobike, Hellobike and Qingju – were given the green light to add to their bike quota in Guangdong’s capital city, Ofo was not granted permission to bring more bikes to Canton. 

READ MORE: Thousands of Pissed Off Users Line Up Outside Ofo's Beijing HQ

[Cover image via Pixabay]

more news

Amy DeCillis on Registering a Company in China

When we came across Amy DeCillis' company origin story, it sounded like quite a rollercoaster.

The Tricky Business of Dating a Friend's Ex in China

DNC discusses tricky situations people find themselves in when they blur friendship lines with matters of the heart.

How Shared Bikes are Being Reused in the PRC

While the bike share craze has settled down now, it's hard to ignore what happened with all those two-wheelers.

Another Western App Bites the Dust in China?

Signal, an encrypted messaging app, is currently down in China and only available via a virtual private network (VPN).

What is 'China Risk' and Why Global Companies Can't Ignore It

Political Economist Dr. Shirley Yu shares insight into her career in China policy and explains 'China risk.'

3 Shared Bike Brands Still Rolling in China

An update on commonly seen shared bikes still in business around China's biggest cities.

Adapting to the New Normal in the Business World of 2020

​Ever wondered what it takes to become the CEO of an international company in China?

0 User Comments

In Case You Missed It…

We're on WeChat!

Scan our QR Code at right or follow us at Thats_Shanghai for events, guides, giveaways and much more!

7 Days in Shanghai With thatsmags.com

Weekly updates to your email inbox every Wednesday

Subscribe

Download previous issues

Never miss an issue of That's Shanghai!

Visit the archives