Chinese Bike-Rental Startup Ofo Eyes Global Expansion

The video discusses China's commitment to green energy, focusing on the bike-sharing startup Ofo, which raised $700 million. Ofo, backed by Alibaba, is competing with Mobike, backed by Tencent, in a market likened to a proxy war. The model is more bike rental than sharing, with users not required to return bikes to specific locations, posing risks. Ofo plans to expand to 20 countries with 20 million bikes, already having 6.5 million bikes in 150 cities. The business model is costly due to production, inventory risks, and theft, with significant operational challenges in cities like Beijing and Shanghai.

What is the primary focus of China's recent green energy investments?

• Solar power plants

• Wind energy farms

• Hydroelectric dams

• Bike-sharing initiatives

Which companies are backing the bike-sharing startups Ofo and Mobike?

• Microsoft and Apple

• Amazon and Netflix

• Alibaba and Tencent

• Google and Facebook

What is a unique feature of the bike rental model used by Ofo and Mobike?

• Users can leave bikes anywhere on the street

• Users need to own the bikes after renting

• Bikes must be returned to designated stations

• Bikes are rented for a minimum of one hour

What is one of the major risks associated with the bike rental model?

• Potential for theft and vandalism

• Limited user base

• Complex user interface

• High maintenance costs

How many countries does Ofo plan to expand to with their bike-sharing service?

• 10 countries

• 15 countries

• 20 countries

• 25 countries