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Ofo teams up with largest bicycle producer Fushida

By Sheila Yu

The race is still on in China’s bike-rental sector. Bike-rental startup ofo and the world’s largest bicycle producer Fushida recently entered into a strategic partnership that will see the latter manufacture 10 million bicycles for ofo every year, local media is reporting (in Chinese).

Fushida chairman Xin Jiansheng said the company’s annual production capacity will top 10 million this year, representing a fifth of the global manufacturing output.

In addition, the two companies will build together a global bike R&D center and conduct cooperation in supply chain, overseas market development and other areas.

Ofo and its arch-rival Mobike are well-matched in terms of bike quantity.

Mobike earlier told TechNode that their current annual production capacity is over 10 million bikes, and that they do not need to compete for production capacity as they have set up their own production factory and partnered with over 100 production partners and suppliers.

Ofo CEO Dai Wei said the company now reaped over RMB 10 million in revenue a day and will hopefully turn a profit this year. He also revealed that the company, which had secured US$ 450 million in its Series D this March, will have two new financing rounds in the near future (in Chinese).

In a recent interview with CNBC, Dai said that ofo is worth US$ 2 billion.

Source:: Ofo teams up with largest bicycle producer Fushida

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