Chinese bike-sharing company Ofo has launched video advertising on its app as it looks to create new revenue channels.
The bike sharing company is running five-second video adverts when users open the app to unlock a bike. Coca-Cola and Chips Ahoy are among the first brands to use the new platform.
The move is the latest in a string of revenue raising exercises as the bike-share company battles rumours of dwindling cash-flow as the once-booming bike-share market matures and slows.
Ofo has also recently launched advertising on its bicycles, although this has been banned in some cities such as Shanghai, it has also launched banner ads on the app.
At the height of its popularity, Ofo rolled its service out globally across Asia, the Middle East, Europe, US and Australia. However, dwindling fortunes saw the company pull out of markets including Germany, Isreal, Malaysia and Australia in a bid to focus on “priority markets” including Hong Kong, Japan, Singapore and China.
Recent reports suggest Ofo’s Japan operation is also looking shaky following reports three key staff including its marketing director, country manager and pr manager have all recently left the business.
The company has been plagued by rumours it is in acquisition talks with ride-share company Didi Chuxing, however, these have been denied by Ofo.