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Can Ofo Make Money?

Although Beijing is still chilly chilly, is not the best time to ride the bike, but the bicycle

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February 17, the reporter visited the Beijing CBD area to see, parked in the International Trade 

Mall outside the rental bikes about 4-5 colors. Although the recent international trade mall 

security here every time to move the vehicle to the wall ten meters away from the road side of the 

road, but it still can not put an end to the consumption of shared bicycle enthusiasm.


International trade is only a market scene. In recent years, in order to compete for cycling in the

domestic market this huge cake, whether it is the company or capital, and both are riveting fast 

layout, hoping to become the biggest beneficiaries of the domestic cycling market. Among them, the 

domestic market was established as one of the earliest established companies. However, just by 

increasing the bike delivery density, charge the rental cost of operating mode ofo bicycle can 

really break the cocoon out of it?


Rely on multi-round financing rapid expansion


Network after the car platform war, the reign of capital war is to share the bicycle market. Which 

is the most representative of the enterprise, ofo is undoubtedly remarkable.


It was not an exaggeration to use the "hundred wars" to describe the brutal expansion of the shared

bicycle in 2016. February 16, ofo official to the "China Times" reporter to provide data to the 

Spring Festival in 2017, ofo has covered 33 cities, a total of more than 800,000 bicycles, 

registered users over 10 million, orders over 200 million , Providing more than 100 million travel 

services.


If in accordance with the bio official revealed data to count, ofo in the major cities of the 

delivery has reached 3600 per day, the expansion rate in the domestic market is rare.


"Ofo the bike quickly break from the campus to the major cities, behind the rapid accumulation of 

capital and the demand for financing." Insiders told reporters.


According to report, as of the end of 2016, ofo bicycle has experienced a number of financing, and 

the financing speed is very regular, each capital stationed in the basic interval of two months 

difference.


Perhaps by the capital to promote, a few days ago news that, ofo bike is also building a foreign 

listed VIE shareholding structure, for the overseas listing of the company to do the system set up.

But on February 16, ofo official did not directly reply, but that this is not convenient to 

disclose.


According to the relevant information provided by the relevant information to reporters, the 

current bike cost of the company is more than 200 yuan, plus supporting the rental equipment, a 

total of more than 300 yuan (the final data ofo did not disclose), if the existing bike 800,000 

calculation, the current Ofo in the market layout of the hardware investment has more than 300 

million yuan.


"In addition, coupled with its ofo regional layout and the company office and labor, in fact, 

beforeo capital in the capital market capitalization has been basically not much." The industry 

insiders told reporters.


For the user's deposit and rent, ofo official confirmed to reporters that its leasing consumer 

deposit is earmarked and has not been financed, nor is it calculated in the company's earnings.


Only levy on the profitability of rental fees


"Now we have in some areas to achieve breakeven." Ofo relevant person in charge of "China Times" 

reporter said that this year will be fully profitable.


In the end what is the reason to letoo bike break the car park has been unable to face the problem,

to achieve a break


In accordance with the official statement, the use of low-cost vehicle layout market, and a strong 

post-security so that has been in a profitable cycling market to achieve a breakthrough.


The relevant person in charge of the "China Times" reporter said, ofo is not outside speculation of

 the heavy asset operation model, on the contrary, it is light asset operation mode, the vehicle by

 the veteran bicycle manufacturers Phoenix and Pigeon, the vehicle price is low The


In the interview, ofo official said that every day a single car only 1.5 single can cover vehicle 

wear and operating costs, the average car can be used only three months to return to this. However,

 the official did not disclose how the specific profitability is calculated.


As we all know, in the current shared bicycle market, there is no company officially said that the 

company has been profitable, in addition too, no one company has announced a break.


"Sharing bicycles temporarily do not consider profit." After the founder of the carved bicycles 

said. And its CEO Wang Xiaofeng is directly said, "the reason is still constantly looking for 

investors, because there is no clear profit model, I hope others give me money, let me live, let us 

run faster than others, and then together Looking for profit model. "


However, the reporter through the market survey found that ofo bike income mainly rely on rental 

fees, in addition to no other sources of profit.


In this regard, the industry analysis of the reporter said that for a normal company, the single 

use of consumer fees alone, it is difficult for the industry to feel the shared bicycle company 

operating model development prospects.


Insiders told reporters that in the domestic market is not yet able to achieve the reasons for the 

profitability of bicycles, the most critical is the domestic cost is relatively low, the cost of 

each bicycle is 0.5-1 yuan, and the sharing of bicycles with foreign fees The standard is half an 

hour 5 dollars, a lot of difference.


In addition, the domestic sharing of bicycle chaos stop, malicious damage and theft and other 

issues, but also enterprises have to look directly at the reality.


According to an unnamed business people told reporters that after the company in the second-tier 

cities put 200 bicycles, did not expect to operate less than 10 days, was stolen nearly 20.


In fact, the bicycle also encountered a similar problem. Its company stakeholders told reporters 

that the current problems encountered are chaos stop, on the lock, malicious damage and other 

uncivilized car problems. Finally, the company also equipped with a special line of operations team, 

timely maintenance of the vehicle conditions, guide and regulate the public to comply with traffic 

rules.


Ready to continue to burn?


From the perspective of the development of the bike 2017, 2016 may be the start of the bike just 

burn.

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According to the bike 2017 development plan shows that in the current coverage of 33 cities on the 

basis of 2017 the company's plan is tooo bicycles cover 100 cities nationwide and start the global 

synchronous operation.


Reporters rough calculations found that ofo cycling in 2017 development plan relative to the rapid 

growth in the second half of 2016 is even worse, from the scope of urban development point of view,

is 2016 years before the development of the total 3 times more The


"The move also means that the expansion model of the money will continue in 2017, and the intensity

 of this burn will be more and more and will be more investment." An investor told reporters that, 

2016 may be just the beginning of the burn, 2017 for the bicycle is the main battlefield.


The above-mentioned people to the reporter bluntly, in fact, the trip to the bike, is to be more 

than the number of Mount Baimai bicycles, and this can be directly from the previous two 

contradictory data can be seen, ofo actually want to fundamentally far more than the horse , No 

longer fight the data confused war.


According to Bida Consulting recently released "2016 China shared bicycle market research report" 

shows that ofo to 51.2% market share ranked first in the industry, motorcycles cycling to 40.1% 

share second. Almost the same time, Trustdata released the "2016 China Mobile keyword 

(microblogging) / keyword Internet industry development analysis report" said that the number of 

active users per month has reached 3.135 million, equivalent to 3.3 times the ofo.


However, for the ofo bicycles, it is necessary to throw a distance from the motorbike, but also 

need more capital help. February 16, accepted the "China Times" reporter interviewed theo said that 

the company will continue to finance the next, but there is no update news.


Re-force force to enter the market of the bike, in a large amount of capital investment, whether in 

2017 to achieve profit forecast, is currently the biggest challenge facing


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