Transport authority urges ofo to expedite online refund process

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The Ministry of Transport on Friday urged China's bike-sharing company ofo to refund users' deposits quickly.

Wu Chungeng, the ministry spokesperson, said ofo should introduce more channels and reduce expenses to expedite the online refund process to protect the legitimate rights and interests of its users.

The ministry also said it would follow the update of the process with other related departments.

Wu added that bike-sharing is a new mode of transportation integrating the mobile Internet with bike-renting in recent years, and the ministry fully supports its operation in a proper way. It provides a new choice for daily commuters and plays an active role in promoting green commuting in a city.

ofo app showing a 199-yuan deposit page. /VCG Photo

Under cash flow pressure, struggle to pay back

Days ago, hundreds of people lined up at the ofo's headquarters in Beijing, asking for a refund of their deposit immediately. Up to now, at least 11 million users are applying refund online, but they have to wait as the company faces debt pressure.

Calculating by its 99-yuan deposit, which is the lowest (another one is 199-yuan), the yellow-bike company have to pay back a whopping amount of 1.1 billion yuan.

Dai Wei, chief executive officer of ofo speaks during a session at the World Economic Forum (WEF) Annual Meeting of the New Champions in Dalian, China, June 27, 2017. /VCG Photo

ofo CEO Dai Wei on Wednesday said in a letter to its employees that the company is under huge pressure on cash flow, but it will try hard to be responsible to its users and never give up.

On December 4, Dai Wei was issued a consumption restriction by a court in Beijing, meaning that he is prohibited from any unnecessary consumption of life and work.

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