In this class, I discuss bike-sharing company Ofo. And their spectacular rise and fall in China.

You can listen here or at iTunes here.

The exercise for this class is:

What should Ofo have done?


1) Partner with a major digital platform ASAP. No matter what it takes.

2) Copy Hellobike. Avoid the competition. Go to markets or segments with little competition and try to get to operating break-even.

3) Split the company into a good co and bad co. Fund the good company and don't tie it to the cash drain of the bad co.

4) Carl Icahn option. Go activist investor and try to split the company, replace management or other.

What would you recommend to the CEO?

• Write 3 paragraphs with your answer. Do it on your smartphone. Or a PC. Or a piece of paper (take a picture and save it).
• Think about bundling and the emergence of greater ecosystems.

The McKinsey slide cited is here.

Articles / podcasts cited in this class:

• What Should Giant Bicycles Have Done About Mobike and Ofo?
• How Bundling Benefits Sellers and Buyers (Chris Dixon)

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I write and speak about digital China and Asia’s latest tech trends.

I also run Jeff’s Asia Tech Class, a podcast and subscription newsletter on the strategies of China / Asia tech companies.

This content (articles, podcasts, website info) is not investment advice. The information and opinions from me and any guests may be incorrect. The numbers and information may be wrong. The views expressed may no longer be relevant or accurate. Investing is risky. Do your own research. 

www.jefftowson.com

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