Hong Kong (CNN Business)Not so long ago, Chinese bike-sharing firm Ofo was flush with cash and hailed as a game-changing tech startup. Today, it’s struggling to stay afloat.
Backed by billions of dollars from high-profile investors like Alibaba (BABA), Ofo helped pioneer the dockless bike-sharing phenomenon that swept across Chinese cities in recent years. The bikes can be locked and unlocked anywhere via a smartphone app, which means users don’t have to return them to designated stations.
Ofo fended off dozens of copycat rivals, but it now risks becoming the latest casualty of a cut-throat industry. Hordes of angry customers gathered outside its headquarters in Beijing this week to demand refunds. The company and its founder have been put on a government black list for failing to pay debts.
