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Briefing: Ofo founder renounces position amid mounting lawsuits
Ofo founder replaced as bike-sharing firm’s representative amid rash of lawsuits —SCMP
What happened: Founder and CEO of bike-rental platform ofo Da Wei has removed himself from its position of legal representative of the firm. The role was taken over by Chen Zhengjiang, head of the firm’s hardware supply department. The move comes amid mounting lawsuits from unpaid suppliers including Shanghai Phoenix Bicycles and Tianjin Flying Pigeon Cycle Manufacturing. The former is suing ofo for a total of $10 million.
Why it’s important: Ofo has been in a lot of trouble for the past few months, retreating from international markets amid a cash crunch. This previous month has seen a number of rumors about its acquisition. Hello TransTech, previously known as Hello Bike, has confirmed that the company is indeed in negotiations to merge with ofo. However, according to unnamed sources, ofo will find it difficult to prove its valuation despite the $1.4 billion funding it has received so far. Both ofo and Hellobike are backed by Alibaba’s Ant Financial.