Last weekend, a poster of ofo having a warehouse sale, selling its bikes from $50 onwards, surfaced on the internet.
TechNode, a Chinese tech website, first reported that a source said the bike sharing giant launched the sale to downsize its operations in Singapore due to a cash crunch.
With intense competition to offer users the best value in an overly saturated market, it’s not surprising that some bike sharing firms are burning more cash than they earn.
However, ofo responded saying that the sale is actually a move made by their freight forwarding partner in Singapore over a commercial dispute.
Dispute Over Failure To Pay Fees
The freight forwarding company, which has not been named, is taking action against ofo for failure to pay their freight and logistics fees.
It plans to sell off around 9,000 new ofo bikes that were shipped over from China.
The sale will supposedly be held from 15 to 17 June at 5 Tuas Avenue 3, in a warehouse space rented from Bok Seng Logistics.
The price the bikes will be sold at, $50, is estimated to be 30% lower than what ofo pays their supplier, Shanghai Phoenix.
ofo said it has agreed to pay the relevant fees, and that it finds the arrangement “unduly aggressive” since both parties are in ongoing talks to resolve the matter.
Said ofo head of policy and communications for Southeast Asia, Christopher Hilton, “In ofo’s view, such a sale is being unreasonably pursued to gain leverage in completing ongoing commercial discussions.”
But Will The Sale Actually Happen?
Those hoping to hop on the sale and get an ofo bike for cheap may have to cancel their plans.
According to The Straits Times, a Bok Seng Logistics spokesperson said the company did not receive formal notice of the sale, and has not authorised the event.
“Therefore, no sales will be conducted on the mentioned dates,” the spokesperson added.
Furthermore, Hilton said ofo is “considering its legal options” while they are also “working in good faith” in hopes of avoiding having their property sold off.
What do you think? Would you still be holding out for a chance to clinch a $50 bike?
Featured Image Credit: ofo / TechNode