Bluegogo Collapsed? CEO Fled the Country! Deposits are Gone

Posted by Internsinbeijing on November 16, 2017November 16, 2017

Bluegogo, a famous bike sharing company in China shocks the world! The CEO left the country and the deposits are gone!

Company Background

– Bluegogo was founded by Gang “Tony” Li in November 2016 in Shenzhen. Since then they raised over 58 million US$ over 1 year on a company evaluation of 140 million$. With this Bluegogo was the number 3 in the bike sharing war in China.

Latest numbers show they claim around 20 million users which with a deposit of 99RMB would be around ~2 billion RMB deposit. All money that now is not available anymore! (eventually not all paid the deposit). Also latest numbers show that they had over 350’000 bikes on the streets.

After their shut down, do we need to fear that others will follow? Should we take out our deposits? If we do so, I am sure that other sharing companies would not be able to cash out and the whole thing would end as a domino effect!

The empty office at the Bluegogo Headquarter in Beijing

The consequences are harsh! If you paid a deposit for Bluegogo you might never see it again!

The Vice President of Bluegogo admitted that he left the company months ago, same as many other top managers at Bluegogo. Also the CEO disappeared and seems to be in an unknown other country.

The employees are waiting for their salaries which they might only get in February if ever. Today about 70 vendors gathered in front of the headquarters in Beijing to get their money back and find things valuable to replace the debts of Bluegogo.

Risk of Deposits

Since there are no clear guidelines on how to manage deposits in China yet, it might be hard to get the deposit back.

This will certainly lead to some second thoughts next time when you need to pay a deposit.

Leading to the question: Do you trust in getting your deposits back?

Bluegogo CEO Li Gang left the country

Many users asked by InternsInBeijing didn’t get their deposit back even though they claimed it back around 1 month ago. Please let us know your story in the comments below:

How the news from Bluegogo affect you?

Did you pay a deposit with them? Did you get it back?

Will you now be more careful with putting a deposit in such companies?

Will you abandon other bike sharing companies such as ofo, Mobike or maybe smaller ones?

IS THIS JUST THE BEGINNING?

Let us know in the Comments below.

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