Chinese bicycle company Ofo sued Shanghai Phoenix bicycle "unpaid bills" and announced that they totaled about 10 million dollars Financial Times. This is the latest of a series of setbacks this year and shows some of the problems faced by on-demand bicycle manufacturers all over the world.
by FTOfo contracted manufacturers with 5 million bicycles in May 2017 and purchased it over a year. But during this period, Ofo bought 2 million motorcycles, Shanghai Phoenix Bicycles caused income to decline 55%, causing a lawsuit. At the beginning of this year, the manufacturer said that it is likely to deliver less than 100,000 bicycles to Oo between January and April.
This latest exam is another symptom of the industry, Ofo's different headache. The decline in demand seems to be due both to intensifying competition with other bicycle sharing companies and to increasing transit service regulations in cities around the world that are not surprised by the bicycle outlook.
In the last two years, we spend a lot of money in Asia, Europe and the US, and this slowing down of demand is causing problems. He had to raise about $ 900 million in May and began withdrawing from several markets that he just entered and pulled out altogether.
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Ofo sued a $ 10 million unpaid invoice from a Chinese bicycle maker
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