The investors who share bicycles also said that this is probably a losing business.
On December 20, Ubiquitous Bicycles (Red and Green) announced their cooperation with Shanghai Permanent Bicycles and officially entered Shanghai at the beginning of next year. Ubaye stated that with its permanent capacity in bicycle manufacturing and supply chain and 8 years of experience in public bicycles, they will have to put 2.8 million bicycles nationwide in the next year.
However, the day after the news came out, the parent company of the permanent bicycle company Zhonglu Co., Ltd. issued an announcement clarifying the figures involved.
"The company's holding subsidiary, Shanghai, is permanently planning to supply Ubiquitous Bicycles with shared bike bicycle products. At present, it has not yet finalized the supply price and signed a supply contract.
Shanghai Futures (Yuba Bicycle), which is a permanent shareholder of the Company's holding subsidiary, may have significant losses in the future, and the new model of shared bicycles in operation will likely result in a loss of RMB 6.5 million from the investment of the company. "The figure of 6.5 million is just the amount of investment that will be permanently invested in Ubai.
The announcement stated that it was just a bicycle supplier for U-Bike. After signing the contract, the number of first-time bicycles was about 70,000. But at present, they have not even signed the supply contract, and the details have not yet been set.
In addition, in this announcement, the investor’s position on sharing bicycles is also clearly stated, and he believes that it is currently not a business that makes money.
In stark contrast to investors who have become cautious, there is an increasingly hot capital market.
Since entering Mobi in Beijing in August, the shared bicycle market has attracted hundreds of millions of dollars in financing. After Mobike and Ofo, Hellobike and riding bicycles from second-tier cities also reported financing news in succession in November. On the 13th of this month, Uibai Bicycle also announced that it had obtained 100 million A+ round of financing.
The concept shares that shared bicycles and shared cars yesterday had a daily limit, including Shenzhen Zhonghua A, Haima Motors, and Zhong Road shares, which said that sharing bicycles does not make money. Among them, Zhongluo shares have soared by 40% in the past 6 days, while Shanghai Phoenix, another shared concept share, started yesterday to yesterday's close, accumulating a total of 106%.
With the entry of capital, these shared bicycle companies quickly put bicycles into more cities. In particular, after October, a total of 11 companies entered the nine cities of Kitakami Guangzhou-Shenzhen, Chengdu and Ningbo in three months.
Moreover, each ambition is not small. The CEO of Mobike Wang Xiaofeng disclosed in an interview that he plans to invest 100,000 bicycles in each city he enters. Ofo plans to invest 1 million vehicles nationwide by the end of the year. Even if the target is to be placed in a second-tier city such as Ningbo and Suzhou, the number of deposits will range from 20,000 to 100,000.
Although more and more bicycles are available for riding on the road, these companies are far from profitable.
Li Gang, the CEO of Xiao Lan, who just brought his bicycle into the shared bicycle field last month, said in an interview. “Now, no matter how you make money, how much you can burn.â€
The title map comes from wikipedia
Reprinted from: Curiosity Daily
Oxygen Facial Machine,Oxygen Facial Device,Oxygen Facial Equipment,Oxygen Beauty Machine
Guangzhou Lesen Xinpin Electronics Co.,Ltd , https://www.lesenxinpin.com