Ofo is struggling with its cash flow problems.
On one hand, it is trying very hard to sell its consumer traffic to advertisers, service providers and lenders. Tough effort, given that the users are becoming less and less active thanks to the poorer and poorer maintenance of the bikes.
On the other hand, users are complaining about not able to get their safety deposit back.
There is one jokingly suggestion that has been circulating around China’s social media:
“Ofo is really short of good marketing talent…
If I were the CEO of Ofo I would be focusing on selling ads pegged to refund.
If you want your refund, each ad click will get you CNY0.5, and each sharing of the ad will earn you CNY 1.
I would then charge advertisers based on clicks and influence. If any click results in purchase, the user will get CNY10 refund – using the CPS (cost per sale) model.
Within one month, Ofo would become profitable.”
Maybe the person who proposed this knows Qutoutiao (QTT) too well?
Thanks for reading The Low Down (TLD), the blog by the team at Momentum Works. Got a different perspective or have a burning opinion to share? Let us know at [email protected].