Ofo

Ofo was a Beijing-based bicycle-sharing company that rapidly ascended to become a key player in the nascent dockless bike-sharing market before a dramatic collapse.

The company was established in 2014 by five members of the Peking University cycling club, with Dai Wei serving as the CEO. The founding group also included Zhang Siding, Xue Dong, Yang Pinjie, and Zhang Yanqi. Dai Wei, an alumnus of Peking University's Guanghua School of Management, had a background that intertwined with the company's mission. His experience teaching in Qinghai province, where he relied heavily on a bicycle for daily commutes through mountainous terrain, solidified his vision for a bicycle-based enterprise. Initially launched as a tourism project in 2014, the venture pivoted to bike-sharing, officially launching on the Peking University campus in June 2015.

Ofo operated on a dockless, or free-float, model, which was its core operational distinction. This system allowed users to locate and unlock the company's signature bright yellow bicycles anywhere in a city using a smartphone application, rather than being restricted to fixed docking stations. Customers were typically charged an hourly fee for usage, paid through mobile platforms like Alipay or WeChat Pay. The business model was designed to address the "last mile" transportation challenge in urban settings, providing a convenient option for short commutes from public transit hubs. Revenue was generated primarily through these rental fees, but also initially relied on user deposits and collaborations with businesses for advertising.

The company's service involved a mobile app for both Android and iOS devices, which users would use to scan a QR code on the bike to unlock it. Advanced GPS and IoT technology were integrated into the bicycles to facilitate tracking and maintenance. At its zenith in 2017, Ofo had deployed over 10 million bicycles across 250 cities in 20 countries, boasting more than 62.7 million monthly active users and reaching a valuation of up to $2 billion. The company attracted significant investment, raising over $2.2 billion in total from backers including Alibaba, Didi Chuxing, and Ant Group. However, a strategy of aggressive, cash-burning expansion to gain market share, coupled with intense competition, high operational costs, and issues with vandalism and theft, proved unsustainable. After facing a massive cash crunch and a flood of user deposit refund requests, Ofo dramatically scaled back its global operations in 2018, dissolving its international division and ultimately ceasing its bike rental services by 2020.

Keywords: Ofo, bike-sharing, dockless bicycles, Dai Wei, Peking University, urban mobility, last-mile transport, sharing economy, QR code bikes, mobile app rental, transportation startup, Beijing startup, bicycle rental, micro-mobility, venture capital, Alibaba, Didi Chuxing, startup failure, cash burn, shared bikes, sustainable transport, urban transportation solutions, public bicycles, asset-heavy, technology-enabled transport, GPS tracking bikes, China tech