In brief: Ofo turns to ecommerce, converts user deposits into discounts

Since the beginning of February, Ofo users who hadn’t requested a deposit refund have found a new option in the Ofo app called “Discount Mall.” They can choose to “upgrade” their deposit to tokens [that] can be used for shopping.

Source: 36kr (in Chinese)

Chinese users of the beleaguered bike-sharing service can convert their locked-up cash deposits into digital currency, which can be used to purchase a range of around 40 products – from coffee to snacks to paper towels – at a discount.

The option is only open to users who have not submitted a refund request for their deposit.

Users besieged the Beijing headquarters of cash-strapped Ofo last December, demanding the return of their deposits as rumor began to swirl about the company’s imminent demise.

Ofo, which has reportedly exited all of its ex-China markets, has made several efforts to monetize its platform in the wake of the cash crunch, such as on-bike and in-app advertising. It has also encouraged users to join peer-to-peer lending schemes.