Briefing: Ofo rumored to disband remaining international businesses

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ofo海外部门解散,员工被要求转岗或离职 – China Entrepreneur

What happened: Chinese bike-rental startup Ofo is reportedly dissolving its remaining overseas businesses. On Tuesday, group head Jeremy Chen gave international staff three options: Transfer to a domestic team at half pay, leave without compensation before Thursday, or neither leave nor transfer voluntarily and receive half pay for December and nothing for January.

Why its important: At the end of 2017, the bike-rental firm operated in 50 cities around the world and claimed to have facilitated more than 10 million rides outside of China. However, it started backpedaling shortly after rumors of a cash crisis began to proliferate, shutting down operations in countries including India, Australia, and seven other markets. It also scaled back operations in locations including Singapore, where its provided 10,000 bicycles. Since then, more than 10 million domestic users have applied to have their deposits refunded, amounting to more than RMB 1 billion (around $145 million). Ofo CEO Dai Wei has also been put on a government blacklist for failing to pay the company’s debts.