Evaluating only Ofo’s profile at its peak — without knowing the outcome — the model ranked Unit economics as the #1 likely cause. That’s exactly how it died.
Full Analysis
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Documented cause
Ofo expanded to 200 cities across 20 countries using $2.2B in funding before achieving unit economics. Bikes were abandoned in rivers and vandalized globally. The company could not return deposits to 15M users waiting in a queue. Ofo collapsed under $2.2B in debt by 2019 and became a symbol of China's over-funded startup era.
Lesson
“Geographic expansion multiplies unit economics problems. Fix the model in one city before raising capital to break it in two hundred.”
FAQ
Why did Ofo fail?
Ofo failed because it expanded to 200 cities with $2.2B in funding before achieving unit economics. Bikes were abandoned, vandalized, and stolen globally. Unable to return deposits to 15M users, the company collapsed under debt.