(Yicai Global) June 11 -- Ofo’s troubles have spread to its overseas operations with reports that a logistics firm in Singapore has been selling off the firm’s trademark yellow bikes following a dispute over an unpaid bill.
A Singaporean warehouse owned by local storage firm Bok Seng Group has been peddling the bikes for SGD50 (USD37), news site The Paper reported. Ofo’s operator, Bikelock Technology, responded saying it will pay the debt and remains in negotiations on the matter.
“Ofo has an ongoing business arrangement with a freight forward/logistics provider in Singapore and has agreed to pay relevant fees for services,” the bike-sharer said in a statement. “Ofo considers the actions taken by the service provider to be unduly aggressive given the ongoing dialogue with the relevant service provider.”
The sell-off is the latest in a spate of negative news for China's second-biggest bike-sharer. Ofo denied reports last week of large-scale layoffs stemming from a liquidity crisis, with half of staff at its Beijing headquarters possibly facing the ax.
The company is reportedly downsizing its operations in the Southeast Asian city-state by laying off half of its 60-person team less than 17 months since entering the market, Chinese economics magazine Guanchazhe reported. Ofo did not address the matter in its statement.
In its statement, Ofo accused the warehouse of using the bike sell-off as a means to “gain leverage in ongoing commercial discussions” and although the enterprise is exploring legal options, it is confident of resolving the issue outside of court.
Editor: William Clegg