Can 10 million users get their money back by filing a lawsuit with ofo for one yuan?

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 Can 10 million users get their money back by filing a lawsuit with ofo for one yuan?


After the good days of burning Renminbi for heating passed, the bitter winter of sharing bicycles suddenly came.

A building on the West North Fourth Ring Road, Haidian District, Beijing. Separated by a wall, it blocked the anger between the inside of ofo Xiaohuang car and the users of bicycle deposit.

Within the wall, Dai Wei, founder of ofo and CEO of Beijing Baiklock Technology Co., Ltd. (hereinafter referred to as Baiklock Company), continues to urge employees to identify with and firm beliefs, not to escape, and to live bravely; outside the wall, consumers who no longer have trust in ofo and Dai Wei are seeking a result through various channels, such as law.

Im not asking for the 199 yuan. Im asking for a statement. A deposit refund process has been going on for more than a month, an ofo user told First Financial Journalist.

Standing at the peak of capital, ofo used to be the market leader. But what capital seeks is business, and it turns out to be faster than turning a book.

Face-to-face conflict

Shared bicycle was born on the campus of Peking University in 2015. The first company to enter the market is ofo. The Shanghai Bicycle Industry Association had statistics in 2017. At that time, the total number of shared bicycles in China was nearly 15 million. Mobai bicycles and ofo accounted for nearly 80% of the total, which showed the status of ofo. At the peak of the boom, the daily order volume of ofo exceeded 30 million orders.

But sharing bicycle mode is very, very dangerous. Wang Gongquan, a well-known investor, once told the media.

The days of cooking oil on fire did not last long. At the end of last year, Cool Cycling and Little Blue Cycling collapsed one after another. In 2018, Moby bicycles were sold to the American Regiment. Ofo sold advertisements in an attempt to save itself from hematopoiesis and cancel the deposit exemption because of the tight capital chain. After that, not only a number of pledges were continuously generated, but also news of withdrawal from the Japanese market came out.

The conflict between consumers and ofo has developed to an irreconcilable stage because of the deposit problem. Since December 17, 2018, hundreds of ofo users have gone downstairs to the headquarters of Beijing Haidian District Company to apply for the deposit refund offline.

Because of the sudden incident, the internal security of the building was apparently caught off guard. Consumers from the outside to the fifth floor of the building, like waves of people, rushed to the company one after another. A few security personnel, while maintaining order, called the building property to seek assistance.

With the spread of news on December 18, more and more defaulted deposit users gathered from all sides. As of December 18, 2037, more than 10 million deposit refund users were queued online and offline.

On the 19th, the building where ofo headquarters is located still gathered a large number of people, aged across the old, middle-aged and young people. A young woman told First Financial Journalist that she went offline to refund her deposit simply because the company was nearby, otherwise she would not run in long queues during the working day and the time cost would be too high.

Even so, she went through the complicated procedures of queuing, filling in specific account information, personal identity information, online deposit refund time and so on.

The court cant control ofo

In the ofo user rights group, a variety of voices are rampant - sympathizing with ofo, resenting, and indifferent to 199 yuan.

A 23-year-old student who was not in Beijing and could not go to the ofo headquarters line to apply for a deposit refund said that 199 yuan was already a huge property for him, and he usually saved a little money; another older person said to the post that he did not care about the deposit, but hoped that ofo could return the deposit to the student party under greater economic pressure as soon as possible.

Protecting rights and discussing opinions are keywords in the group, and controversy and refutation are also normal.

One group member suggested that everyone pay one yuan to fight a lawsuit together, while the other disagreed. He said, The lawsuit process is really troublesome, and you have to collect evidence by yourself. The cycle is too long to afford such a high time cost at all.

Is it okay to go through legal procedures? A group of members concluded directly in a sarcastic tone that the court cant control ofo.

Another practical case was posted - when a user ran to court to sue ofo for non-refund of deposit. The Peoples Court of Haidian District, Beijing, heard the case at that time and ruled to reject the users claim, because Article 15 of the Rules of the User Registration Agreement agreed by the consumer stipulates that any dispute arising from or relating to this Agreement shall be submitted to the China International Economic and Trade Arbitration Commission. The arbitration shall be conducted in accordance with the existing arbitration rules in force at the time of applying for arbitration.

After hearing, the court held that the claimant had reached an agreement with Baiklock Company through the user registration agreement, and the dispute between the two parties was arbitrated by the China International Economic and Trade Arbitration Commission. Therefore, the Peoples Court of Haidian District of Beijing ruled to dismiss the lawsuit in accordance with the law.

Haidian Court specifically reminded the judge that according to the relevant provisions of the law, the parties can agree on the way of dispute settlement, which can be settled through arbitration or litigation. Once the parties have agreed to arbitrate, the peoples court will have no jurisdiction.

Funds turn out to be the last straw

As the public opinion of the incident grew louder and louder, Dai Wei finally made his voice on the evening of December 19.

In this internal letter, he wrote: Everyone has experienced tremendous suffering and pressure in recent days, and I have persevered in pain and despair. Since the company failed to make a correct judgment on the changes of the external environment from the end of last year to the beginning of this year, the company has been under tremendous cash flow pressure throughout the year. Return users deposit, pay the suppliers arrears, maintain the companys operation, and break a dollar into three dollars. Dai Wei said he had thought about going bankrupt himself.

I tell myself, and I tell every ofo, that there is hope in living, that we have to bear the greatest pressure, and that we have to overcome the greatest difficulties.

It is obvious that inflammatory text can no longer appeal to ofo users. Most of the users who spoke in the deposit refund group expressed distrust and expectation.

It feels like this letter is procrastinating. Its hard to believe what ofo does.Theres no solution to this problem.

However, some people affirmed ofo and its founding team, believing that it is not easy for college students just out of campus to crush the start-up companies under the pressure of giants to achieve the present level, and they are willing not to withdraw the deposit of 199 yuan to show their support. Ordinary users who had previously returned their deposits submitted their deposits again and bought the amount of money they used, saying they were unwilling to be the stones that fell into the well when others were in distress.

The second-tier shared bicycle, Cool Riding and Little Blue Bike, has fallen one after another.

Funds have become ofos last straw, saving its life or crushing it.

In late November, some netizens posted on Weibo that ofo cooperated with PPmoney, an internet financial platform, to launch free riding activities, provided that the deposit paid was upgraded to PPmoney-specific assets with a 30-day asset lock-in period, and personal information such as ID cards, phone calls and mailboxes was also required. After successful drainage, PPmoney paid ofo a drainage fee of 100 yuan per person.

According to the exclusive knowledge of the First Financial Journalist, ofos asset cooperation in the field of P2P started as early as the end of 2017, including the cooperation with Ningbo Finance in October last year. When users refund their deposit, they can choose to put it in Ningbo Finance, the latter will give one persons diversion fee of Ningbo 99 yuan. But this kind of income is very small, and it is not enough to alleviate the plight of ofo in the capital chain. Yan Yan, a lawyer at Beijing Normal Law Institute, told First Financial Journalist that it was unlikely that ofo could refund all consumer deposits. Although ofo officially promised, as the main body of a limited liability company, it had to refund according to the companys property situation. In other words, the company would refund as much money as it had, and it might go bankruptcy liquidation if it could not. But according to the amount of more than one hundred yuan per person, Yan Yan believes that it is not enough to gather people to form a large-scale run. Source: First Financial Responsibility Editor: Wang Fengzhi_NT2541

According to the exclusive knowledge of the First Financial Journalist, ofos asset cooperation in the field of P2P started as early as the end of 2017, including the cooperation with Ningbo Finance in October last year. When users refund their deposit, they can choose to put it in Ningbo Finance, the latter will give one persons diversion fee of Ningbo 99 yuan. But this kind of income is very small, and it is not enough to alleviate the plight of ofo in the capital chain.

Yan Yan, a lawyer at Beijing Normal Law Institute, told First Financial Journalist that it was unlikely that ofo could refund all consumer deposits. Although ofo officially promised, as the main body of a limited liability company, it had to refund according to the companys property situation. In other words, the company would refund as much money as it had, and it might go bankruptcy liquidation if it could not. But according to the amount of more than one hundred yuan per person, Yan Yan believes that it is not enough to gather people to form a large-scale run.