Ofo Users Pushed to Sign up to Third Party Loan Service
As of Nov 23, bike rental firm Ofo has begun urging its users to transfer their existing deposits in the app to online loan platform PPmoney as part of a commercial agreement with the lender, our sister site is reporting.
Ofo
last year increased its deposits for new users from RMB 99 to RMB 199,
though existing users were not affected. Now, riders who have not
upgraded to the new deposit tier have been presented with an in-app pop
up prompting them to convert their RMB 99 deposit to a RMB 100 asset in
the PPmoney ecosystem in order to enjoy deposit-free rides. Users who do
not want to take part can refund their deposits, according to the
company.
PPmoney then has a 30-day lock-in period in which users
don’t have access to their money. However, the company claims that once
the time has lapsed, users can withdraw the deposit with interest.
Ofo
has been criticized for the move, with commenters saying it is selling
its users and attempting to avoid paying back deposits. Ofo responded by
saying that it is a typical market activity and that it is limited to
riders who have paid RMB 99 deposits. Users are also required to submit
their ID information when opening new PPmoney accounts. Ofo added that
its current refund process could take up to 15 days.
Several Ofo
users told local media that despite the company’s 15-day refund policy,
they have been waiting for a refund for up to a month.
PPmoney defended the partnership by saying that the companies have many overlaps in their user base.
Rumors
of Ofo's cash crunch have been circulating for the better part of a
year. The company has been pulling out of international markets and
having its global assets sold. It has faced lawsuits from suppliers
claiming the company has yet to pay its debts and has been rumored to be
in the midst of a takeover by ride-hailing giant Didi.
Read more about the latest tech news and advancements in China right here:
This post comes courtesy of our content partners at TechNode.
Photo: Technode
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