The Rise and Fall of ofo Founder Dai Wei: A Business Case Study

Earlier this week, Xiao Hui introduced the story of Mobike founder Hu Weiwei, and today we turn to another shared‑bike giant, ofo, and its founder Dai Wei.

Dai Wei, born into an elite family—his father a former president of China Railway and current chairman of China Chemical Engineering Group—enjoyed a privileged upbringing and attended Peking University’s Guanghua School of Management, where he held leadership positions in student unions.

1

Despite his advantages, controversies surrounded his university years, including allegations of bribery and disputed accusations that were later clarified.

During college, Dai experimented with a night‑time coffee‑shop operation and a teaching stint in Qinghai, experiences that sparked the idea for a bike‑sharing service.

He launched ofo initially as a cycling tourism project, later expanding aggressively, burning cash by giving users free drinks, and eventually shifting to campus‑focused bike sharing.

To fund the venture, he secured a dramatic pledge from over 2,000 Peking University students, promising free use of their bikes, and took on a 6‑million‑yuan loan to grow beyond campuses.

2

In 2016, renowned investor Zhu Xiaohu (the “unicorn catcher”) approached Dai, providing crucial capital and connections, though Zhu’s motives were later questioned as primarily profit‑driven.

Under Zhu’s influence, ofo received significant market attention, but rapid scaling led to operational challenges and missed strategic opportunities, such as declining a timely investment from Tencent.

3

Dai’s partnership with Didi’s founder Cheng Wei deepened, yet Didi eventually took control of ofo’s operations, finance, and personnel, leaving Dai feeling sidelined.

Internal issues surfaced, including data falsification by employees and financial mismanagement, contributing to the company’s instability.

4

Investor Zhu proposed merging ofo with Mobike, a move opposed by Dai, leading to further shareholder tension and Zhu’s exit.

After failed negotiations with Cheng Wei and dwindling capital, ofo faced severe cash shortages, supplier disputes, and massive layoffs.

5

By October 2018, Dai stepped down as ofo’s legal representative; in December, a court placed him under a consumption‑restriction order, and by June 2019, the company was declared insolvent with multiple executives labeled as defaulters.

The story ends with reflections on missed opportunities and the fleeting nature of startup success.