Shao Yi, the head of the B2B business division of ofo, revealed that “the B2B business goes on smoothly”
While a large cash crisis seems to be breaking down on the company, ofo says its B2B businesses have made over RMB 100 million for revenue
Shao Yi, the head of ofo’s B2B business division, revealed that “ofo B2B business is going smoothly. As of now, its revenue has passed the RMB 100 million mark. At the same time, ofo’s B2B business in over 100 cities in China has managed to turn profits.”
Ofo’s B2B division activities are mainly concentrated on business ranges from include bike-body ads, in-app ads and the corporate green card.
Shao Yi: “User traffic can be diverted to the advertiser’s online or offline channels”
Shao also described the characteristics of users, saying that usually these users mainly use ofo with an inelastic demand: “Tens of thousands of ofo bikes are being ridden around cities, and so O2O ads get more exposure. In addition, ofo user traffic can be directly diverted to advertiser’s online or offline channels. Advertisers value ofo’s integrated O2O marketing resources and user conversion capabilities.”
Ofo is not the only Chinese company to use advertising to increase its low revenues. Even other Chinese bicycle rental companies are increasingly trying to profit from advertising, although some Chinese regions have issued bans to place advertisements on bicycles.
MORE ON THIS TOPIC