After Divorce, I Can Hear the Future

Chapter 53: OFO Shared Bikes

Chapter 53: OFO Shared Bikes“Hello, Professor Liang. My name is Lu Liang, from Tianxing Investments...”  

At the expo’s management office, Lu Liang introduced himself and inquired about the entrepreneurial team behind the yellow bikes.  

"Yellow bikes?"  

Following Lu Liang’s gaze, Liang Juntao suddenly understood. “Mr. Lu, that’s OFO, a shared bike startup team from Peking University. They’re participating in our entrepreneurship expo, but their slot is scheduled for tomorrow.”  

This year, the expo had been extended to two days due to an overwhelming number of applications, with teams split across two sessions.  

“Are you interested in their project, Mr. Lu? We could arrange an introduction for you,” Liang offered.  

OFO’s founder came from a distinguished background, and Liang had received instructions from his superiors to pay special attention to their team and connect them with potential investors. It was a rare opportunity to earn goodwill effortlessly.  

While Liang hadn’t heard of Tianxing Investments, the gold-trimmed invitation Lu Liang carried signified high status.  

“I would appreciate it, Professor Liang.”  

“Please wait a moment. Here’s their proposal for you to review while I contact Dai Wei, their team leader.”  

Lu Liang was shown to a lounge, where a part-time student worker softly asked, “Sir, what would you like to drink?”  

“Iced water, please.”  

As he browsed OFO’s proposal, his mind wandered.  

OFO’s business model combined the shared economy with smart hardware, aiming to address the “last mile” travel problem.  

Founded last December with a registered capital of 1 million yuan, the company operated 1,800 shared bikes across four campuses, including Peking and Tsinghua Universities.  

To prepare for the expo, OFO had deployed 300 bikes at Shanghai Finance University over the past week.  

Their revenue model charged users 0.5 yuan per hour, with a maximum daily charge of 2 yuan.  

Currently, OFO had over 20,000 paying users and an average of 8,000 daily rides. The company was valued at 5 million yuan and sought 10% equity for 500,000 yuan in angel investment.  

Lu Liang opened the window to let in fresh air, lit a cigarette, and pondered.  

The concept of OFO was promising but faced a significant challenge—scaling beyond campus environments.  

Over six months, they had deployed 1,800 bikes with a loss rate of only 1.7%, a testament to the high caliber of Peking and Tsinghua’s communities. Outside campus, however, the loss rate could easily exceed 20%, which would be disastrous.  

Each yellow bike cost 330 yuan to produce. Even with cost-cutting measures, high damage and theft rates would render the business unsustainable.  

Lu Liang

“And if you’re the only player in the market, pricing could rise to 1 or even 2 yuan per ride, yielding daily revenues of 100 million or 200 million yuan.”  

Lu Liang painted a grand vision, captivating Dai and his team, who began envisioning this prosperous future.  

But just as they were lost in the dream, Lu Liang punctured it with a cold dose of reality.  

“But your project has a fatal flaw,” he said bluntly.  

“Please, Mr. Lu, what is it?” Dai asked, now entirely serious.  

“You lack core technology. Your concept is extremely easy to replicate.”  

Each word landed like a blow. Dai knew this truth well.  

Last month, Dai had learned from a friend in Hangzhou that a competing bike-sharing service, Mobike, had launched there. With strikingly similar operations and deployment strategies, Mobike had already entered university towns, signaling an imminent threat in the winner-takes-all market.  

This was why OFO had offered 10% equity at a low valuation—they urgently needed funding to expand and secure their position.