We all know that big cities are struggling with traffic and air pollution. But one of the ways that can help the city become healthier and less crowded is the use of bicycles. China is no different from this, and in 2014 Dai Wei, a PhD student, along with four other students after a lot of research, introduced the app to share the bike called Ofo, and has so far achieved a lot of success.
Ofo at a glance
- Founder: Dai Wei
- Founded: 26 March 2014
- Headquarters: Beijing, China
How Ofo bicycles work?
To use the OFO bikes, you need to install the app on your smartphone, and
find the bicycle number in the app by finding the closest bike to reach it.
After receiving the four-digit code with the app,
you can unlock the bicycle. You can use it for 30 minutes.
After using the bike, people should park the bike at one of their stations.
The cost of using an Ofo bike is 15 cents per day as a subscription fee.
Revenue Model: Subscription – Recurring Revenue
Investors of Ofo
At first , Ofo startup funded € 930 million, but now it is working with companies such as Russia’s DST and Didi Chuxing as an investor.
Currently, the service has up to 300 million users in China, and
has also attracted 30 million users in Singapore, the United Kingdom and the United States.
By 2017, more than 10 million bicycles have been deployed in 250 cities and 21 countries.
This company valued at up $2 billion and has over 62.7 million monthly active users.
Projections suggest that by 2020, this bike sharing startup will generate $ 5.8 billion in revenue.
It’s interesting to note that last year, Apple CEO Tim Cook, also went to Beijing to visit Dai Wei,
who founded Ofo, and this helped the app to be downloaded over half a million and ranked among the most popular in China.
After this company failed to merge with Mobike and some other opportunities to expand its business,
it couldn’t keep growing.
Thus in 2018, Ofo announced huge reduction in operations such as withdrawing from most US cities.