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Ofo Doubles Bike Rental Deposit Requirement to RMB 199

The Paper, 6/20/17

Beijing-based Bikelock Technology, operator of mobile bicycle-sharing app Ofo, has doubled its bike rental deposit for new users to RMB 199. Some existing users have also reported that when applying to collect their previous RMB 99 deposit, the system displayed a message asking them whether they wish to proceed, and indicating that the deposit amount is increasing to RMB 199.

Ofo said that it is currently implementing an all-new smart credit-based system, which will take into account a user's riding habits and credit score when determining the deposit amount.

A representative for Ofo said that updating the deposit amount for new users to RMB 199 is part of its new system, and that new users must deposit a larger amount because they have not yet developed a credit profile. The representative said that the deposit for existing users remains at RMB 99. In addition, Ofo said that it has offered a deposit-free riding service to more than 10 mln users through partnerships with platforms such as Chinese third-party payment processor Alipay. As the new system is introduced, users with a high credit score will enjoy various benefits.

Editor's Note: In 2016, total users of dockless bicycle-sharing services in China reached over 20 mln, and total market size exceeded RMB 1 bln. Rapid expansion into new cities and steady uptake by new users will drive up these figures dramatically in 2017 to over 200 mln users and nearly RMB 10 bln in revenues. At the same time, China's top bike-sharing operators have already begun trial operations in several overseas markets, and, looking to capitalize on their accumulated industry knowledge, secured supply chain advantages, and strong financial backing, are preparing to rapidly accelerate overseas expansion efforts. To help investors and potential technology, channel, and marketing partners identify opportunities in China’s booming bike-sharing industry, Marbridge has researched and formulated the Chinese Bike-Sharing Industry Matrix. The Q1 2017 edition of the Matrix provides details on 20 leading dockless bike-sharing operators. For more details on Marbridge's Q1 2017 Chinese Bike-Sharing Industry Matrix, please click here.

Keywords: wireless Bikelock Ofo mobile application credit rating bicycle sharing

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