With $700 Million Chinese Bike Sharing Firm ofo Targets Europe

The past months the former student of the Beijing University Dai has shown China that for him, growth has no limits. “We now have some 2,500 full time employees. One year ago we only had 50.” However, bike sharing schemes in China are reaching their limits as there are currently over twenty different bike sharing platforms. Two of those recently went bankrupt, as supply is exceeding demand at numerous locations.

In Beijing many sidewalks are impassable because of hundreds of thousands brightly coloured public bikes, spread over China’s capital. The yellow ofo’s, together with the orange Mobikes , represent the majority. “Town wise we have to find the most efficient way to tackle the problems,” is Dai’s comment on this.

Running break even
These problems come with the fact that public bikes do not have to be returned to docking stations. They simply use QR codes to be scanned by smartphones for unlocking. The costs of one ofo bike ride stands at CNY 1 (€0,13) for 1 hour. But ofo customers have to pay a deposit, and have to put money in their account to share a bicycle.

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