Ofo's Supplier Switches Off Locks Over Unpaid Bill
William Clegg
/SOURCE : Yicai

(Yicai Global) Aug. 10 -- Troubles at Chinese bikesharer OfO continued this week as a supplier of wireless locks on its bicycles switched off its services over an unpaid bill.

The Beijing-based firm owes over half a million dollars to the supplier, which resulted in the disconnection of locks on around 2 million of the company's trademark yellow bikes.

Ofo, which has more than 10 million bikes around the world, said it was working on a solution and all of its bikes can be used as normal.

The bike sharer, backed by e-commerce giant Alibaba, remains in an uphill struggle as it looks to keep abreast of a sector that has wiped out tens of companies in the past year alone. Ofo and Tencent-backed rival Mobike have stood head and shoulders above the competition and represent a 90 percent share of the China market while the likes of Bluegogo and Xiaoming have met their demise.

Ofo has struggled with liquidity this year, and has significantly downsized operations in overseas markets in an effort to focus on its home market of China.

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Keywords: OFO