[Global Network Technology Reporter Chen Jian] Recently, Ofo founder and CEO Dai Wei said in a conversation with CNBC that ofo’s current valuation has exceeded US$2 billion, which is twice the valuation of two months ago.
For a company that has only been established for two years, such a valuation looks very good. Of course, the valuation has erased its founder Dai Wei’s own private savings of RMB 150,000.
For Davies, he does not seem to care about the company's valuation. Although a young company has achieved this amazing valuation, he believes that the most valuable thing is to provide services to consumers. "When you set up a company, you have to solve the problem. You have to provide services for users," Davey told CNBC. "We have to figure out what the main problem we have to solve is - it's more important than valuation."
Currently there are more than 3 million ofo bright yellow bicycles in more than 50 cities in China, and these bicycles have also appeared in London and Singapore. Dawei said that at the end of 2017, ofo will visit 20 countries including Japan, Spain, France, Germany, and the Philippines.
“We think bikes are a global language,†Davey said, and most of the world’s population will ride bicycles.
The rapid development of ofo is the epitome of the dazzling bicycle sharing war that has suddenly appeared on the road in China. Currently in the big cities of China, each color of the rainbow version of the bicycle represents its own different company, and more and more capital has flowed into the shared bicycle industry to help these companies expand dramatically. But the most important issue at the moment is, what is the time to share a bicycle to be profitable and how the operating costs of the bicycle are.
Professor Paul Gillis, professor and co-director of the Guanghua School of Management at Peking University, said: “The business model of sharing bicycles is confusing. At present, the industry is a capital-intensive industry. These companies must maintain the number of bicycles and use the current fares. It is hard to imagine that they can obtain a positive flow of funds."
Paul Gillis also believes that another big risk shared by bicycle companies is that if consumers lose confidence in the company and demand a refund, they will face great risks. However, a large number of investors have already poured into this industry to send funds.
Ofo currently has huge supporters, including DST Global, a company that has invested in Facebook and Twitter, and a Chinese taxi rental app from Uber China.
In fact, it is easy to understand why Chinese consumers adopt the bicycle sharing model - this is very convenient. Because unlike other programs, users can place bicycles anywhere. In addition, use such a green way to cross the huge Chinese city street. And now some areas are already planning bicycle lanes, and drivers need not worry about bicycle maintenance or theft.
The success of ofo even attracted the attention of Apple's Tim Cook. The well-known corporate tech CEO visited the company's office after a recent visit to Beijing, and then this bicycle application became the most popular application store in the Apple China App Store, with over 500,000 downloads per day.
However, at the same time of rapid development, shared bicycles have also brought a series of negative effects. Shared bikes are currently being littered in public areas, and some sidewalks are stacked with two rounds of random bicycles.
However, these challenges are not terrible to Davy. He believes that cooperation with the government will solve this problem very well. Like all competitors in the industry, ofo has been trying to move bikes to higher demand areas, sometimes by moving them to a new location, or using monetary incentives to let users bike or park bicycles at specific locations. .
Davie's dream is that in the next five years, city residents will not buy bikes on their own. He hopes that in every city in the world, in every corner, you can find a bike ofofo, help you to go to the nearest restaurant, the nearest supermarket, subway station, or just riding on your city. .
Davy’s office’s motto is: “Cycling anytime, anywhere.â€
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