(Yicai Global) Nov. 16 -- Struggling Chinese bike sharer Bluegogo, run by Tianjin Luding Technology Co., has officially dissolved with supplier debts of CNY200 million (USD30.15 million), a company insider posted on social media yesterday.
Only a few technicians are left at the company, online media outlet Bianews quoted the insider as saying. Bluegogo is facing a mountain of debts and its chief executive, Li Gang, is not in China.
The bike-sharing provider owes outstanding payments to over 70 suppliers, with some saying they are due CNY1 million (USD150,996) and others claiming they are owed as much as CNY8 million.
Bluegogo was founded in November last year and pulled in CNY400 million in its A-round financing in February, but in September it hit liquidity problems and many users complained that they were unable to retrieve their security deposits. In October, the company issued a statement guaranteeing it would return user deposits by Nov. 10.
This year has seen the bike-sharing industry expand rapidly in China and worldwide, local domestic governments have now issued policies to suspend or restrict the release of new shared bikes on to the street. Other than top performers Beijing Mobike Technology Co. (Mobike) and Beijing Bikelock Technology Co. (Ofo), almost all bike sharers have run into cash flow problems.