Caixin Global – Latest China News & Headlines

Home >


CX Tech is Caixin Global's real-time tech news portal, featuring 24-hour news, short-form analysis, and roundups from business and tech media in China.

Kuke Brings AI-Powered Piano Lessons to 4,000 Kindergartens
SmartMore Bags $200 Million in Fresh Funding as China Pushes for AI in Manufacturing
TikTok Rival Kuaishou Wins Rights to Tokyo and Beijing Olympics
Geely’s New SUV to Include Smart Cockpit System Developed Partly by Ecarx
Tesla Opens Solar-Powered Charging Station in Tibet's ‘City of Sunlight’
Nissan-Backed Chinese Self-Driving Startup WeRide Raises $310 Million
Amazon Buys Automated Driving Systems From Plus, Considers Stake Purchase
Online Grocers Dingdong Maicai and Missfresh Set Terms for U.S. IPOs
Baidu Joins Caravan of Chinese Tech Giants Targeting Carbon Neutrality
Chinese Brands Rising in Global Esteem, Analytics Firm Says
Trending in China: Wave of Disbelief Greets Proposal of Award for Academic’s Work Debunking Einstein
Alibaba Cloud Remains Top Dog in China by Wide Margin
Geely-Owned Volvo to Develop Electric-Vehicle Batteries With Northvolt
Online Tutoring Startup Spark Education Files for U.S. IPO as Regulators Crack Down at Home
Chinese Smartphone Brands Play Catch-Up With Apple in Global 5G Race
Zvision’s Latest Funding Round Shows Investor Interest in Lidar Has Got Range
Trending in China: Venerated Literary Translator Xu Yuanchong Dies at Age 100
Apple Touch-Screen Supplier Biel Crystal Plans Second Bite at Hong Kong Listing
Stop Annoying China With Spam Texts, E-Commerce Giants Told
Baidu Partners With Automaker BAIC on New Apollo Robotaxi
Cash-Strapped Bike-Sharing App Ofo Says It “Hasn’t Given Up”

By Simin Wen / Oct 15, 2019 06:24 PM / Business & Tech

Photo: VCG

Photo: VCG

Beleaguered bike-sharing company Ofo is saying reports detailing some of its financial difficulties aren’t true. The company that was once a powerhouse but has been relegated to also-ran in China’s competitive shared bike business has issued a rare public statement refuting online rumors that it had borrowed more than 1.7 billion yuan ($240 million) in a bid to kick-start its moribund business.

An article published Monday on a little-known WeChat public account claimed that in February last year Ofo mortgaged nearly 45 million bicycles in return for a 500 million yuan loan from Ant Financial-affiliated investment firm Shanghai Yunxin Venture Capital Management. The report said Ofo later made a similar arrangement involving an unspecified number of bicycles with Alibaba-backed Zhejiang Tmall Technology in return for a further 1.27 billion yuan loan.

The buzz that followed prompted Ofo to issue its rare statement saying the article “contained large amounts of false information,” without giving further details.

The statement also referred to longstanding cash flow issues that have left an estimated 10 million of Ofo’s former users waiting to reclaim their initial 99 yuan deposits. “For nearly a year, Ofo has been in well-known difficulties, but it has not given up,” the statement said. “At present, we are making every attempt to resolve historical deposit problems and to continue to meet users’ bike-use needs as much as possible.”

Once-highflying Ofo has languished since last year when declining funds prompted a flood of user requests for deposit refunds.

The company has deployed a number of strategies in response, from implementing deposit-free services in Shanghai to rolling out a fixed-parking bike-sharing model in part of Beijing.

Related: Frustrated Shared-Bike Riders Go to Ofo in Search of Refunds

Share this article
Open WeChat and scan the QR code