糖心视频

So far in 2019, some of the world鈥檚 largest tech companies are learning a hard lesson: growth has consequences. For bike-sharing startups in China, the consequences include and riches lost.

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Ofo, the yellow rimmed leader of the pack, picked up a massive $2.2 billion in known funding from its investors in just under five years, per Crunchbase. After flooding the streets of Beijing and other major cities in China, the company launched in the U.S. in 2017. A year later, ofo significantly scaled back its international operations in July 2018, just a few months after raising its largest led by Alibaba Group. According to , the company鈥檚 CEO Dai Wei was blacklisted for defaulting on debt in December 2018, and ofo of bankruptcy in a Weibo post earlier this month. Other outlets reported that Singapore鈥檚 transportation department revoked the company鈥檚 license to operate in the country.

Mobike鈥檚 investors, on the other hand, took a different route. The company found an early exit in China-based Meituan Dianping, a company which has eyes on the mobility space, after raising . Its investors included the illustrious WeChat owner, Tencent, and Singapore鈥檚 Temasek. According to reports, Meituan Dianping recently introduced fees for bikes parked outside of specified zones. Lesser-known was acquired by China鈥檚 ridesharing giant in after experiencing its own tough times in 2017. Both companies have reportedly in to combat losses. Take the revenue where you can get it when you鈥檙e in a cash-burning business like bike sharing.

Despite the signs that companies seem to be focused on major damage control, that Shanghai-based Hellobike, which is backed by Alibaba鈥檚 fintech affiliate Ant Financial, is looking to raise up to $500 million more. We鈥檒l see if its investors think there is a light at the end of this tunnel, or if piles of bicycles and lines of disgruntled customers and employees block the way.

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