Caixin
Caixin Global – Latest China News & Headlines

Home >

TRENDING
U.S. Tightens Export Controls to Cover Subsidiaries of Blacklisted Firms
DeepSeek Unveils New Model With Sparse Attention, Slashes API Costs
Tech Brief (Sept. 30): U.S. Widens Export Blacklist
LATEST
Tech Brief (Sept. 30): U.S. Widens Export Blacklist
U.S. Tightens Export Controls to Cover Subsidiaries of Blacklisted Firms
DeepSeek Unveils New Model With Sparse Attention, Slashes API Costs
Tech Brief (Sept. 29): Meituan’s Food-Delivery Platform Keeta Launches in Dubai
Chinese Chipmaker Moore Threads Gets Fast Track Approval to $1.1 Billion IPO
Chinese Drone Maker XAG Files for Hong Kong IPO After First Annual Profit
GPT Weekly: Nvidia to Invest $100 Billion in OpenAI
Tech Brief (Sept. 26): Trump Approves TikTok Deal
Xiaomi Ups the Stakes in Premium Market With iPhone-Style 17 Series
Yangtze Memory’s Parent Restructures to Pave Way for IPO Amid Sanctions Pressures
Tech Brief (Sept. 25): Alibaba Launches AI Models
Alibaba Bets Big on ‘AI + Cloud’ With New Models, Nvidia Deal
GlobalFoundries Boosts U.S. Investment, Adds China Fabs to Meet Auto Chip Demand
Tech Brief (Sept. 24): Mercedes-Benz, ByteDance Partner on In-Car AI
Tech Brief (Sept. 23): Nvidia Plans $100 Billion Investment in OpenAI for AI Data Centers
Tech Brief (Sept. 22): Trump Says Murdoch Family May Be Involved in TikTok Deal
GPT Weekly: CoreWeave Secures $6.3 Billion Nvidia Order
Huawei Unveils Three-Year AI Chip Roadmap as Nvidia Faces Setbacks in China
Tencent Cloud Shuns Price War in Intensifying AI Race
China’s Regulator Ramps Up Push to Curb Food Delivery Subsidy War

By Tanner Brown / Dec 20, 2018 11:34 AM / Business & Tech

Photo: VCG

Photo: VCG

The founder and CEO of beleaguered Chinese bike-share startup Ofo has told employees that the company is bleeding cash and must “turn every renminbi into three” to stay afloat.

In an internal letter to employees on Wednesday, Dai Wei said he has repeatedly considered filing for bankruptcy, in part because the company did not “correctly assess the changing external environment from the end of last year.”

Recent droves of users demanding their refunds back are not helping Ofo’s woes. On Monday, a line of more than 100 people formed outside the company’s headquarters in Beijing’s high-tech hub, Zhongguancun.

Ofo’s latest funding round, in March, was led by Alibaba, which invested $343 million for a 12% stake in the startup, giving it a valuation of at least $2.8 billion at the time.

Weeks later, main competitor Mobike was acquired by group-buying giant Meituan-Dianping for $2.7 billion.

By September, Ofo’s daily active-user count had fallen to 3.89 million from 5.1 million earlier in the year.

Related: Cash-Strapped, Money-Losing Ofo Says It Will Soldier On

Share this article
Open WeChat and scan the QR code