Legal compliance research of shared bicycle's financial risks in the ofo case 

Xiao Yunqi

Shanghai Zhongqiao Vocational and Technical University, Shanghai China，201514；

Abstract：In this era of the share economy, all the things that seem to meet the needs of users can be shared objects for example sharing a charging battery, sharing an umbrella, sharing a car or even sharing a plane, all of which may become objects of entrepreneurs’ business plan. The share economy especially the shared bicycle, is becoming more and more popular in our daily life. Shared bicycle in China has ever been hailed as the "New Four Great Inventions" of the Internet and a model of sharing economy entrepreneurship.Therefore, my paper will be focused on their financing attribute of internet financing and the successful factors of ofo, their different kinds of financial risks and the compliance subjects of the the shared bicycle in the legal perspective through the ofo case study. And finally to find a solution to improve their service and financial risk and to give recommendation to the shared bicycle industry.Furthermore, by identifying the financial risks they are facing with, I will invest our resources to investigate in one representative company “ofo”in share bicycle industry. I will find the reason behind ofo’ s success and problems in chinese market by comparing with other competitors in this industry, in the respective of the regulation and compliance issues in chinese market: for instance, in the perspective of the protection of the customers, the responsibility of financial supervision.Finally, I will also discuss the recommendation to the other financial risks which I have deeply analyzed before such as compliance risk, credit risk and investment risk etc. At the end, I will give my general advice to the sharing bicycle industry who has the similar operational model or will meet the same problems as ofo enterprise.

Keywords: ofo shared bicycles; financing attributes; financial risk; financial supervision; compliance suggestion

References

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