Ofo Bicycle Sharing System

Ofo bicycle sharing system was initiated in 2014, and is the first company around the
globe that operates “non-docking” bicycle rental system on the Internet. Its innovative
idea of “sharing economy + smart appliances” aims to solve the commute problems
on the “last mile”. Ofo created an unprecedented bicycle sharing system that does not
require the implementation of a docking station. Users only need to key in the number
of license plate on the ofo bicycle via the App to receive the unlock code of the
bicycle, and the bicycle then be used whenever and wherever in need; users can also
share their own bicycles on the platform in exchange for the unlimited use of any ofo
bicycles, sharing one getting access to all.

Ofo has provided commuters with a convenient, affordable and low-carbon way of
traveling, greatly reduced the urban traffic congestion, saving energy and optimizing
the utilization of city resources.

Ofo’s mission is to “make bicycles available to its users anytime and anywhere”.
Instead of manufacturing more bicycles to meet the demand, its ultimate goal is to
connect existing bicycles with people in demand, so that people around the world can
unlock any ofo bicycle via the platform to meet their need for a short trip.

As an open platform with the spirit of sharing, ofo would love to collaborate with
bicycle manufactures around the globe, and also with ofo users, encouraging sharing
of bicycles on the platform. Guided by the innovative model inspired by sharing
economy and facilitated by technological advancement, ofo is able to maximize the
utilization of bicycle resources and save public space in cities. Ofo also advocates
sustainable use of bicycles, using modern technology to standardize the operation of
ofo bicycle sharing system, collaborating with the local government and the general
public to optimize bicycle sharing scheme.

Funding of the system

So far, ofo has completed C round financing.

As of September 2016, ofo had attracted investments from Will Hunting Capital,
dongfang, GSR Ventures, ZhenFund, Angel Investor Gang Wang, Matrix Partners
China.

On October 10th 2016, ofo announced its C round financing of 130 million US dollars,
including millions of US dollars from Didi Chuxing as C1 strategic investment,
followed by C2 investments from Coatur, Xiaomi, Shunwei, CITIC Private Equity,
and those early investors including Vision Capital, Yuri Milner, Didi Chuxing, Matrix


Partners China, GSR Vemtures.

Originality of “non-docking bicycle sharing system”

Over the past years, public bicycles have become a trend in some of the big cities
around the world; cities like Paris and Hangzhou are both operating worldly renowned
public bicycle systems. Traditional public bicycle system requires a docking station,
which not only occupies public spaces, but also makes it inconvenient for users to
pick up and drop off bicycles. It also requires substantial funding from organizations
including local government to maintain the infrastructure of the system, which greatly
hinders its development.

Ofo is the first company to propose the bicycle sharing model which does not require
a docking station. The core concept “non-docking” break free from the restraints of
traditional docking station, combined with Internet technology and smartphone,
making the shared bicycle a truly bicycle-on-demand anytime and anywhere. It also
infused public bicycle system with vitality, turning it into a program with promising
commercial value.

Business growth

Since ofo launched its first service in June 2015, it has now become the world’s
largest bicycle sharing platform with the most rapid growth of users, and covering the
most cities. Ofo currently connects with more than 300 000 bicycles, with over 5
million registered users, providing more than 50 million rides in 24 cities in China. It
will launch its service simultaneously in the US, UK and Singapore which will make
ofo the first Chinese Internet technology company launching its operation on a global
scale.

In China, ofo bike sharing system has entered more than 200 universities, including
Peking University, Tsinghua University and Fudan University.

As of beginning of December, ofo’s daily order exceeded 1.5 million, following major
platforms such as Taobao, Tmall, Meituan, Ele.me, JD.com and Didi, becoming the
ninth company in China whose daily order exceeds a million and the first company in
the bicycle sharing system industry.

Social value

l Improving travel efficiency, optimizing public service



Ofo greatly improves the utilization rate of bicycles, increasing the usage of a single
bicycle from 5 minutes to 76 minutes, from serving only one person to serve at least
10 people per day. The sharing economy embedded in the system plays down the
importance of ownership and emphasizes the sharing of resources; therefore, ofo
utilizes city resources, reduces traffic congestion and promotes low-carbon travel.

l Low-carbon way of transportation

According to statistics, for each mile travelled by ofo users, the carbon emission is
reduced by 0.27kg. Now ofo users have travelled over 50 million kilometers, reducing
the total carbon emission by 13.5 thousand tons.

Strategy and prospect

Ofo is the only bicycle sharing platform in the industry that committed to the business
model of sharing economy. It provides a platform connecting bicycle manufactures
around the globe and bicycles shared by ofo users, promoting the development of
China’s bicycle manufacturing industry.

Ofo will gradually expand its operation to all cities around the world, aiming to be the
first Internet startup company exporting its business model abroad and become a pilot
in China enterprises exploring global market.

Case and experience: ofo×Peking University

“Ofo bicycle sharing system” was initiated in Peking University in 2015 and quickly
became available in 200 universities over 24 cities in China; meanwhile, the company
operated in Beijing, Shanghai, Guangzhou, Shenzhen, Chendu and Xiamen.

“Ofo bicycle sharing system” proposed a new model that bicycle owners who are
willing to share their bicycles have access to all ofo bicycles free of charge, while
ohter users pay to use ofo bicycles.

Ofo bicycles come from three sources:

-University students and staff sharing their own bicycles;

-Overhauled bicycles abandoned in the campus;

-A number of “seed bicycles” provided by ofo during its initial stage of operation on
campus, intending to promote the bicycle sharing behavior. The number of “seed
bicycle” is then adjusted according to the actual demand.


“ofo bicycle sharing system” benefits the students and staff on campus in the way
that:

-It’s more convenient to travel within campus and reduces the incident of stolen
bicycle and the need for repair.

-Reduces the overall number of bicycles on campus as purchasing a bicycle is no

longer necessary; therefore, reducing the maintenance cost.

-The recycle of abandoned bikes on campus utilizes resources and tidy up the
environment.

Peking University now has over 40000 students and staff, among which over 29000
are registered users of ofo bicycle, with a daily order over 37000.

The ofo bicycles in bold yellow color are visible in every corner of Peking University
campus, including lecture buildings, dormitory, cafeteria and common areas, ready to
be used by people in need.

Ofo has also worked with the university to recycle and refurbish the old bicycles on
campus that are not claimed by the owner. After the repair, repaint, license registration
and installation of a lock, those abandoned bicycles are ready to be used by registered
students and staff. So far, over a thousand bicycles were recycled and put back to use.

Every September, ofo will hold a campaign to promote bicycle sharing. Freshmen and
a large number of audience will opt for ofo bicycles rather than purchasing their own,
which substantially relieves the pressure for the storage of bicycles.

Safety

In every university where “ofo bicycle sharing system” is operated, the company will
deploy a full time maintenance team to manage, examine and repair the bicycles,
making sure they are up to standards for user safety. Up until now, in over 20
universities in Beijing in which ofo bicycles are used, there has never been a report of
accident caused by the quality of ofo bicycles.

In addition, we have purchased travel insurance for every ride by ofo users, making
riders safety an absolute priority.
ofo
Bike-Sharing Platform
Who We Are
• Founded in 2014

• The first non-docking bike-sharing platform in the world

• Initiated in Peking University, now expanded to 34 cities in China

• Largest bicycle-sharing platform with the fastest user growth

• Completed series C funding of US$130 million

Problems with Urban Traffic
• 1：Traffic congestion, high volume of carbon emission and
environmental pollution caused by automobiles

Congestion Carbon Emissions Pollution

2：High cost of short-distance transportation

500 m

Not so near, not so far

3 km
We need Bicycles
More and more countries begin to realize the importance of bicycles in
the planning of urban transportation
Bicycles are returning to cities gradually
Problems with Private Bicycle

Not always
Theft Money & Time Often left unused by your side
Problems of Public Bike-Sharing with
Docking Stations

Distance between
Limited and fixed
destination and Low efficiency
docking spaces
docking station
Here comes our solution
World’s first
Non-docking
Bicycle-Sharing Platform
Sharing Economy + Smart Appliance
Pick Up, Ride Away

Enter the bicycle ID Use the code to Bikes can be left at any
with ofo APP to get unlock a bike easily bike parking spaces, ready
the unlock code for other users to use
 Advantage

• Flexible trips without

docking stations
• Reduce carbon emission
& eco-friendly • Reduce the overall
amount of bikes in a city
• Sharing economy +
Smart Appliance

• Easy to find • Relieve traffic congestion

ofo Urban Bike-sharing Plan

1 ofo bike sharing platform N

Users can share their own bicycles through the platform

in exchange for the unlimited use of any ofo bicycle
Sharing One and Getting Access to All
 Large volume of users
& abundant operation experience

34 Cities
800,000 Bikes
10,000,000 Users
100,000,000 Orders
The 9th company to exceed 1 million
daily transactions

Tmall Taobao JD Meituan

Ele.me Didi Uber China Yidao

Successful Case: Peking University

2000 bikes contribute to 30,000+ orders per day, 15-20 transactions/bike·day on average
Going Global
• Why Cambridge?

• “city of cycling”

• Pioneering operation experience in campus

• Strategic position of Cambridge

• Open and diversified environment

Going Local
• Offer flexible bike service to local people and tourists

• Hire local people to gain local insights

• Participate in local transportation development schemes

• Get involved with local community to create a more cycling-friendly

environment

• Cooperate with local organizations to promote cycling

Thank you


ofo Company Introduction

Founded in 2014, ofo is the world’s first “non-docking” bicycle-sharing platform

operated via an online mobile app. This pioneering platform combines the twin
concepts of sharing economy and smart appliances to overcome the “last mile
of travel” challenges of urbanites.

ofo has created a unique bicycle-sharing system that does not require “docking
stations”. Using the ofo app, users simply enter the bicycle plate number to
receive an unlock code and then begin riding. Users can also share their own
bicycles through the platform in exchange for the unlimited use of any ofo
bicycles, thereby sharing one and getting access to all.

ofo is a convenient, affordable and low-carbon way to travel, which is

improving the urban transport environment by reducing traffic congestion,
saving energy and promoting better living.

ofo’s mission is to “unlock every corner of the world, making bicycles available
to users anytime and anywhere”. Instead of manufacturing more bicycles to
meet this demand, ofo is incorporating existing bicycles into its platform so that


users around the world can unlock and use any ofo-registered bicycle for their
short trip.

The ofo platform is built around the spirit of sharing and the company is eager
to collaborate with bicycle manufactures and users worldwide to encourage
complete sharing of bicycles through its platform. By way of this pioneering
model, which is inspired by the sharing economy and facilitated by the latest
smartphone technology, ofo aims to maximize bicycle resources and save
public space in cities. ofo uses technology to standardize bicycle-sharing and
collaborates with local governments and the public to provide a more
sustainable means of urban travel.

Rationale Behind “Non-docking” Bicycle-Sharing

In recent years there has been a boom in the number of self-service public
bicycle-sharing schemes in big cities around the world. Cities like Paris,
London and Hangzhou are operating world-renowned public bicycle-sharing
schemes. While these schemes have proven relatively successful, the
requirement of “docking stations” not only occupy additional pedestrian space
but also make it inconvenient for users to pick up and drop off bicycles. These
schemes also require substantial funding from local government and public
funds to maintain the infrastructure of the system, which can hinder
development.

ofo was the first company to propose a bicycle-sharing model without “docking”
stations. The “non-docking” concept enables users to break free from
traditional “docking” constraints, working in combination with smartphone


technology to provide a true bicycle-on-demand service, anytime and

anywhere. The ofo concept is a pioneering one, which has breathed new life
into the bicycle-sharing industry and shaped a new business model with
immense potential.

Business Growth

ofo, which first began in Beijing, is now the world’s largest bicycle-sharing
platform with the fastest growth of new users. It has more than 5 million
registered users and a fleet of over 800,000 bicycles in 34 cities across China.
It has handled more than 100 million rides since its establishment and
operates in more than 200 Chinese universities, including Peking University,
Tsinghua University and Fudan University. With the launch of its platform in the
US, UK and Singapore, ofo will become the first Chinese internet technology
company to launch globally.

At the beginning of December 2016, ofo was handling more than 1.8 million
transactions per day. It is the first company in the bicycle-sharing industry to
exceed one million daily online transactions and only the ninth to achieve this
feat in China, putting ofo in a group with other major platforms including
Taobao, Tmall, Meituan, Ele.me, JD.com and Didi.

ofo Funding


ofo has completed a Series C round of financing.

By September 2016, ofo had attracted investment from Will Hunting Capital,
Dongfang, GSR Ventures, ZhenFund, Matrix Partners China, and angel
investor Gang Wang.

On October 10th 2016, ofo announced a Series C round of financing worth

US$130 million, including over US$10 million from Didi Chuxing as a C1
strategic investment.
C2 investments followed from Coatue, Xiaomi, Shunwei and CITIC Private
Equity. VisionPlus Capital, Yuri Milner, and early investors Matrix Partners and
GSR Ventures also contributed.

Strategy

ofo is the only bicycle-sharing platform with the sharing economy concept at
the center of its business. Its platform connects users with bicycle
manufacturers, which is helping to promote the development of China’s bicycle
manufacturing industry worldwide.

ofo is gradually expanding its operation to cities around the world. It aims to be
the first Chinese internet start-up company to export its business model
overseas and in doing so become an example for other Chinese enterprises
looking to “go global”.

Creating Social Value

l Improving Travel and Optimizing Public Service

The ofo platform is greatly increasing bicycle use in urban environments, from
previously serving one person for 5 minutes per day on average to serving at
least 10 people for a total of 76 minutes per day on average. ofo has been
developed around the concept of the sharing economy and its platform
advocates sharing over and above ownership. In doing so, ofo is improving the
urban transport environment by optimizing city resources, reducing traffic
congestion and promoting low-carbon travel.

l Lowering Carbon Emissions

Our statistics show that carbon emissions are reduced by 0.27kg on average


for every kilometre travelled by ofo users. ofo users combined have travelled
over 50 million kilometres, thereby lowering aggregate carbon emissions by
13,500 tons.

On December 11th, ofo held an event in Beijing called “Blue Beijing – The
Reward For Cycling” in partnership with the Beijing Tourism Commission and
Beijing Television station. The event, which promoted low-carbon travel,
attracted hundreds of participants including environmental protection
ambassadors from 20 organizations, 30 volunteer cyclists as well as university
students, public servants and documentary directors.

During a “red alert” period of heavy smog in Beijing from 17th to 21st December,
when cars were only allowed to travel on alternating days, ofo launched a “free
travel by ofo” campaign and distributed air pollution masks on the street. By
encouraging more people to leave their cars at home and use its
bicycle-sharing platform, ofo is helping to combat air pollution together with
Beijing government.

Safety First

Safety is an absolute priority for ofo at all times. It deploys a full time
maintenance team to manage, inspect and repair bicycles in every university
where it operates its bicycle-sharing platform. The maintenance team ensures
all bicycles are safe and conditioned for use by students on campus. Across


the 24 universities where ofo operates, there has not been a single accident
attributed to quality issues of ofo bicycles. Furthermore, ofo provides travel
insurance for every user on every ride undertaken.

Peking University: An ofo Case Study

Following its first campus roll-out at Peking University in 2015, ofo has
expanded its bicycle-sharing platform to more than 200 universities in 24
Chinese cities, including Beijing, Shanghai, Guangzhou, Shenzhen, Chengdu
and Xiamen.

ofo has integrated a new system into its bicycle-sharing model so that owners
willing to share their bicycles with others are given full access to all ofo
bicycles free of charge. Students that do not have a bicycle to share are
charged a small fee to use ofo-registered bicycles. This system is proving
particularly popular at universities as it gives students access to campus
transportation at low or no cost.

l Sourcing Bicycles

- University students and staff share their own bicycles.

- Reconditioning of damaged and abandoned bicycles found on campus.

- During the early stages of its campus operation at Peking University, ofo
provided “seed bicycles” to help stimulate bicycle-sharing. The number of
“seed bicycles” is adjusted according to usage.

l Benefits

ofo’s bicycle-sharing platform benefits students and staff on campus in the

following ways:

- Provides low cost convenient travel on campus and reduces the incidence
of stolen bicycles and need for bicycles repairs .
- Reduces the overall number and maintenance costs of bicycles on campus
as students no longer need to purchase new bicycles or repair existing
ones.
- The recycling of abandoned bicycles is a better use of resources and
improves the overall environment on campus.

l The ofo Impact



ofo bicycles in their distinctive bold yellow color are visible on every corner of
Peking University campus. They are outside lecture buildings, dormitories,
cafeterias and common areas and are ready for use by students on the move.

ofo has worked and continues to work with Peking University and its students
to recycle those old bicycles on campus which are unclaimed by owners. The
ofo team repairs, repaints, registers and then installs locks on formally
abandoned bicycles so they are ready for use. So far, over one thousand
campus bicycles have been recycled in this way and made available to
registered students and staff.

Every September, at the start of a new university year, ofo begins a campaign
to promote bicycle sharing among new students. A large number of these
students sign-up to the ofo bicycle-sharing platform rather than purchase their
own bicycles, substantially relieving pressure on bicycle storage across
campus.

l Current Operation

Peking University has over 40,000 students and staff, of which over 29,000 are
registered users of ofo’s bicycle-sharing platform. ofo handles more than
37,000 rides by Peking University students every day with demand peaking
around morning lectures, lunch time and at the end of class.