Chinese bike sharing company ofo has hit another speed bump in its international markets.
According to media reports, Ofo is pulling operations out in cities in Spain, including Madrid, Granada, Valencia, and Marbella, after entering the country less than a year ago. The company told TechNode that ofo is still operating in Spain, but admitted that it is going through restructuring as the company is reconstructing its overall global plans.
The company also stated that there are key markets ofo is going to focus on and different arrangements will be made for other markets based on their current situations, without specifying which are the “key markets”.
However, according to Business Insider, Driss Ibenmansour, General Manager of ofo’s operation in Spain, said that exiting Spain is part of Ofo’s global strategy to stay profitable and the company will focus on operating in Paris, London and Milan, which are thought to be more profitable. High maintenance fees caused by vandalism, theft, and abuse were one of the biggest costs of operating the bike sharing business.
Ofo was reported earlier this month to have exited Germany, Israel, and Australia and scaled back business in the Middle East, India, the UK, and Italy. In June, its overseas markets were showing signs of cash crunch after its main competitor Mobike was acquired by Meituan-Dianping for $3.7 billion in April.