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China's bike-sharing Ofo app is now worth $1B

After raising $450 million in a recent round of funding, the bike-sharing company is worth $1 billion. And it's planning to come to the US.

Zoey Chong Reporter
Zoey is CNET's Asia News Reporter based in Singapore. She prefers variety to monotony and owns an Android mobile device, a Windows PC and Apple's MacBook Pro all at the same time. Outside of the office, she can be found binging on Korean variety shows, if not chilling out with a book at a café recommended by a friend.
Zoey Chong
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Bernard Weil, Toronto Star

There are a few companies working to make bike-sharing as ubiquitous as ride-hailing, and one Chinese company just got a step closer.

Bike-sharing app Ofo raised $450 million in its latest round of funding, reports Bloomberg. That raises its valuation to over $1 billion.

The service, targeting those tired of congested roads and public transport, allows users to locate a bicycle parked near them, unlock it through an app and hop on for a ride. The fee is paid upon arrival at destination.

Bike sharing is not a new concept, with companies such as Citi Bike already taking users on rides along the streets of New York. But while other countries' bike-sharing schemes require bikes to be returned to designated locations after use, Chinese bike-sharing companies allow riders to park their bikes anywhere in the city.

Ofo, previously funded by the Uber-slaying Didi Chuxing, is working at expanding its global footprint, as the company's bikes are due to arrive in several countries around the world, including the US, reports the South China Morning Post.

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