The media broke the news that most orders could not be paid for.

All along, due to the high damage rate, ofo Xiao Huang car has not only been criticized by users, but also increased the company's operating and maintenance costs. In the early stages of the competition for the market, acquiring users through low prices is an important means of differentiated competition between ofo and Mob. But now, a series of new actions by OFO prove that the "low-price competition" means is not the winning weapon of OFO and it is no longer destructive to competitors.

On June 20th, ofo raised the deposit from 99 yuan to 199 yuan without any indication. On June 21st, OFO spread a new generation of "Internet of Things smart locks." From these two points, it can be seen that the mode of yellow vehicles that are forced to “bomb” the market by low cost and quantity is being upgraded and transformed.

But will the transformation ofofo be so easy?

According to the report of the 21st Century Business Herald on June 22, Xiao Huang car had given up the intelligent model from the beginning. It uses mechanical locks, and the password for each bike is fixed. It is easy for users to skip the APP to use the password to ride for free. In the first half of this year, Xiao Huangche began installing electronic locks that are compatible with mechanical locks and issued passwords in the form of password tokens. However, due to lack of GPS positioning, it is very difficult for Xiao Huang to avoid being privately occupied by users and problems in operation and maintenance.

An industry source who declined to be named told 21st Century Business Herald reporter that ofo's operation and maintenance costs are almost a dozen times that of other bicycles. Although the cost of vehicles is low, management is also out of control as the amount of vehicles is increasing. "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. ”

It is understood that, before ofo on-line red car activities, but due to mechanical lock holes and can not GPS positioning, into a single black hole. The media broke the news ofo burned 25 million every day, but also can not change loyalty users.

The low cost does make ofo taste the sweetness at the beginning. But the transition 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.

In view of this, ofo will also carry out new financing. On June 16th, Mobi confirmed Tencent’s $600 million E round of financing led by Tencent, and the financing war between the two sides entered a new phase. For ofo, raising the deposit to some extent can also ease the pressure on costs.

However, according to the author's opinion, according to the recent performance of ofo, the malpractices of its model have been clearly disclosed. Not only is the transition difficult, I am afraid that it will be difficult to obtain financing. (Source: Legal and Social)


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