Ofo was founded in 2014 by five Peking University students, led by Dai Wei. The bright yellow dockless bikes became ubiquitous across China and spread to 250 cities in 21 countries. Ofo raised over $2.2 billion from Alibaba, Didi Chuxing, and DST Global. At its peak in 2017, Ofo deployed 1.5 million bikes per month and had 200 million registered users.
Company Data
- Founded: 2014 — Dai Wei
- Total Funding: $2.2 billion
- Registered Users: 200+ million
- Failed: December 2018
Each bike cost $30-50 but only generated $0.15-0.30 per ride. Vandalism and theft rates hit 30-40% in some cities. The average bike lifespan was under a year. When funding tightened in 2018, Ofo couldn't secure a merger or emergency funding. An estimated 10-15 million users queued for deposit refunds. The company effectively collapsed.
Key Lesson
Hardware unit economics must work: a $50 bike generating $0.20/ride lasting 6 months will never be profitable. High vandalism + low margins = impossible business.