A pioneer of the sharing economy who was once glamorous
Once upon a time, the sharing economy was seen as the direction of economic development in the new era. As one of the pioneers of bicycle sharing, ofo is undoubtedly the brightest star in this wave. Its founder, Dai Wei, is even more known as the "pride of the sky" and is favored by capital.
In 2014, Dai Wei and several Peking University alumni co-founded Ofo. Initially just to solve the problem of "last mile" travel on campus, I didn't expect the idea to quickly spread across the country. In just a few years, ofo has spread all over the country's large and small cities, with a volume of up to 76 million vehicles. With the first-mover advantage, ofo once occupied 51.2% of the market share and became the "boss" of the industry.
The favor of capital has also made the value of ofo soar. In 2017, ofo was valued at $4 billion. Founders such as Dai Wei became the new "millionaires". This former sharing economy star ended up with chicken feathers.
About Time Coffee:戴威的新创业项目
Today, Dai Wei has opened a chain of coffee shops called About Time Coffee in New York, USA. This shop specializes in trendy drinks such as pearl coffee and targets the young market. It uses a similar "money-burning" model to Luckin Coffee, which uses subsidies to drive app downloads.
About Time Coffee's model is that customers place orders and pay through the app, and the store makes drinks in advance. Its promotional focus is on providing airtight cans for customers to take away. Dine-in seating is also available. Looking at the menu, drinks with Zhen Zhen cost between $6 and $7, and coffee prices range from $3 to $6 per unit.
Despite only opening 5 stores, About Time Coffee has already won the favor of a number of venture capitalists, including IDG Capital, Zhen Fund, and Weili Capital. To date, it has raised more than $10 million at a $40 million valuation.
Reasons why investors are favored
For investors, they value Dai Wei's entrepreneurial ability and past achievements. Dai Wei once single-handedly built a $4 billion "unicorn" company with ofo. Investors are looking forward to his return to glory and hope to take advantage of the opportunity to make significant returns.
The prospect of the coffee market is also a major reason for investors. According to the report, the market value of Zhenjing milk tea in the United States has reached $640 million in 2023 and is expected to grow to $2.2 billion in the next 10 years. The popularity of related content on short video platforms has added fuel to the fire.
Investors also have their own considerations about About Time Coffee's low-price strategy. The average price of the brand is about $1 lower than Starbucks, which is undoubtedly attractive to young people who are looking for value for money.
Users are constantly skeptical
Although About Time Coffee has a good operation, Dai Wei's image as a "laid-back" in the past has made many people question its new project.
According to industry estimates, there are still more than 16 million ofo users' deposits that have not been refunded, totaling up to 1.5 billion yuan. This money is enough for Dai Wei to be "chic" in the United States. Some netizens pointed out that Dai Wei was "taking our deposit to start a business".
Previously, Dai Wei had been restricted from high consumption many times because of arrears of payments to suppliers and employee salaries. There are also media reports that he embezzled a lot of funds when he left ofo and became an "old man".
In this regard, many people believe that Dai Wei should pay off the arrears first and then talk about new projects. Some former ofo users even said that the 99 yuan or 199 yuan deposit they paid was "also a big expense" for college students at that time.
What does the future hold?
In the face of doubts, Dai Wei did not respond positively. Judging from the current operating conditions of About Time Coffee, its prospects may not be too optimistic.
As of December this year, four of About Time Coffee's five stores in New York have reportedly been "permanently closed." Its Instagram account has not been updated since September, and it seems that business has stalled.
Some commentators have pointed out that there are certain problems with the location of About Time Coffee. It is located in a tourist area rather than a gathering area for locals, so it lacks a certain customer stickiness. Others questioned the variety of products and services.
It's too early to say what will happen to Time Coffee. We will wait and see if this new project can bring a new turn for Dai Wei.
A new journey for the heroes of the sharing economy of yesteryear
As one of the pioneers of the sharing economy, Dai Wei's good chess made him a star figure who was once "in the spotlight of all people". In the end, he fell into the predicament of broken capital chain because of poor management.
Today, Dai Wei has embarked on a new entrepreneurial journey in the United States. This time, he aimed at the coffee market and received the support of many well-known investment institutions. His image as an "old man" in the past has made this new project questionable.
Whether he can make a comeback with this, Dai Wei faces a difficult test. For the 16 million ofo users who are waiting for the deposit to be refunded, whether they can still get their wish will be a big knot that Dai Wei needs to face.