Ofo is difficult to form a closed loop, most orders will not receive money

Free riding, occupying one's own, breeding wool party, red car being trapped in a single black hole, these are all commonplace issues, but the ever-changing, its essence is due to a mechanical lock.

As we all know, ofo small yellow car to take the low-cost low-cost competition means from the beginning, so bikes use mechanical locks, the password for each bike is fixed, the user can easily skip the APP to use the password to ride for free. Although the first half of this year, small yellow car began to install electronic locks compatible with mechanical locks, but still no GPS positioning, small yellow car is still difficult to avoid private ownership by users, and operation and maintenance problems.

The OFO has suffered losses for the time being. According to media reports, the company had previously launched a red-cart event. However, due to a mechanical lock hole and the inability to locate the GPS, it was caught in a black hole. The daily loss may be tens of millions.

According to the report of the 21st Century Business Herald on June 22, an industry person who did not wish to be named told 21st Century Business Herald that the cost of operation and maintenance of ofo is almost 10 times that of other bicycles. Although the cost of vehicles is low, but with the amount Increasingly, management also faces runaway control. "Zhu Xiaohu said that sharing a bicycle will end in 6 months. This is impossible. Ofo is difficult to form a closed loop, and most of the orders do not receive money. In addition, it also lacks precipitation of data and funds, which is a defect of the innate model. ”

The OFO has already realized the existence of the problem. On June 20th, the deposit was raised from 99 yuan to 199 yuan. On June 21st, OFO also spread a new generation of "Internet of Things smart locks." Obviously, the "low price competition" means is not the winning weapon of OFO and it is no longer destructive to competitors. With the low-cost and quantity-driven "bombing" of the market's small yellow car, the model is being upgraded and transformed.

However, according to the 21st Century Business Herald analysis, the ofo transformation means higher costs and technical capabilities.

Jiang Wei, co-founder and CTO of Hellobike, revealed in an interview with a reporter from the 21st Century Business Herald that according to his experience, a bicycle with a cost of RMB 1,000 had a bulk purchase price of nearly RMB 300. This is a huge cost for any company that wants to transform an existing product.

In addition, the 21st Century Business Herald also stated that according to the latest data from iResearch, OFO has deployed more than 6 million bicycles in more than 120 cities in 5 countries and the total cost of smart locks is at least 3 billion yuan, equivalent to its total financing amount. . Earlier this year, ofo also revealed that the total number of bicycles put in this year is expected to be 10 million.

With such a high cost, it is clear that ofo cannot pay at present. It is understood that ofo suffered a collective strike from a repair and maintenance worker in a Tianjin maintenance team due to arrears of employees’ wages yesterday and pulled banners to protest. After the media had spread for several hours, the problem was solved. However, although Ofo's response is that the problem lies with the supplier, this kind of rhetoric has still been questioned by many parties.

According to analysis by industry insiders, ofo may be due to high damage, mechanical lock loopholes leading to increased costs, and problems in the capital chain that cause employees to default on wages.

In any case, the current situation of OFO is not very satisfactory. The recent rumors of 500 million U.S. dollar financing have not made any progress so far. At this time, ofo's choice of transformation and upgrading is undoubtedly worse. (Source: Legal and Social)


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