Tag Archives: transportation

OFO Bike Sharing Market Research

3 Dec

Image result for OFO

My students in microeconomics were recently studying quantity demand and ways to improve profits. Before we moved onto changing prices, we spent some time discussing ways they can change or alter the other 5 factors of demand (Income, Price of Related Goods, Taste, Future Price, and Number of Buyers in the Market).

This brought us to Consumer Research and how companies gather information about their buyers, products, and demand markets.

I recently noticed that the OFO bicycle system has just started operating on the Northeast Normal University campus this semester. For those of you unfamiliar with the system, OFO is an app that allows users to rent bicycles and drive them around town with no designated pick-up or drop-off site.

It was originally founded in Beijing in 2014, but has since spread to cities around China and more countries besides.

The theory of the system is rather simple.

Users download the application on their cell phones and set up an account. The start-up deposit fee has traditionally been 199RMB in China (about $30) which then goes to your account. Then it costs a small amount (1-2RMB) per hour (about $0.16) that you ride. To get a bicycle you locate the familiar yellow bike and use the Code Scanner on your phone to read the bicycle’s bar code. That registers the bicycle to you, and you then ride around wherever you want to go. When you are finished, you cancel the agreement and leave the bicycle wherever you stopped.

There are many conveniences to the program (handy for local transportation, students enjoy the system). But there are some inconveniences as well (too many bicycles left lying in the way of sidewalks and doors, bicycles can be difficult to find, etc).

So I arranged a small market survey and sent it out to my students. They shared it with the freshman (and a few with their parents / siblings) and we used KwikSurveys.com to analyze our results.

Although it is not official, it was a lot of fun and we did learn some interesting results that I thought I would share.

Income

We started by testing the income level of our respondents. We agreed that 199RMB was a lot for students with less than 1000RMB per month. There were a few students who thought it was too expensive as a start-up deposit. Especially since most of them felt they may not ever use that much money in the long run. Some of the students complained that since Changchun is in the north (with very cold weather very early in the fall and late in the sprint), their time to use it was limited. This much money for something they would only use a few months was a stretch.

Demographics

To get a feel for our response bias and the real category of people we reached, we also established some demographics.  

Most of the boys agreed they had tried it, but we had a difficult time getting them to take the survey. 🙂

The students also agreed that, although our survey never reached them, their parents and grandparents were a possible market for OFO. Several students said their parents had already tried it as well. The 21 – 25 year olds were mostly our Junior students. The 15-18 year olds were Freshmen.

Reputation of OFO

At this point, most of the students were familiar with the system. Those who did not recognize the same were aware of the “Yellow Bicycle”

PAST PERFORMANCE

The students also agreed that 24% was a high number for a company like OFO. Although it has only been in Changchun this year, it has been operating in China for a while. They recommended that OFO help teach people how to ride bicycles or show people how to set up the account. They felt like there was not enough information about OFO or people introducing them to OFO.

Some students (and me) had trouble setting up the OFO account. Most of the unhappy users felt like the system was clear, but it often didn’t work or was broken. They complained that they would try to put in all the information and then would get an error code. But quite a few thought it went pretty smoothly.

The Bicycle “easy to reserve” part was must less satisfying amongst the students. The majority complained that there weren’t enough bicycles. They paid a high start-up deposit fee, but then could not ever find bicycles in their area. The bicycles were far away or were already being used. They wanted OFO to provide more bicycles in the area. At the same time, we discussed Beijing and Shanghai’s problems where there are TOO many bicycles available. The bicycles are parked on the sidewalks, and with so many taking up the space, people are forced to walk in the busy streets.

Most agreed that they enjoyed the experience overall. Some felt that it was too cold when they tried it (October — people in the far north are already bundling up for winter and heaters are turning on). Perhaps after summer they will have a different impression. Others felt like it was a lot of money and aggravation to get it all going. Many felt like it was a lot of fun for entertainment, but would not replace taxi or DiDi services.

FUTURE INTEREST

Overall, students seemed to feel that the program had a lot of potential and possibility. They did however think there were areas where it could be improved. It was a fascinating discussion, and the students responded very well!

#Tech Smart – Using #Didi in China

11 Aug

SUCCESS! I finally tried using #Didi for the first time this week! In the US, we have #uber but China has a program called #Didi as their alternative. 🚗
I really enjoyed it actually! You put in your pick-up spot and destination. It finds a driver and tells you how long till they arrive, a map tracking their car coming to you, their license plate #, and a car description (i.e. black Toyota). They pick you up, take you to the destination, trigger the receipt – it is automatically paid for via #alipay or #wechat and you rate their service.
By the grace of God they Actually now have an #English versionof the app which lets you type the names of places in English or #Pinyin. Super convenient!!
I do so love #tech advancements 😜

Fun #Train Fact!

22 Jun

Learned something #new today! The bullet #train 🚄 in #China 🇨🇳has seats A, B, C, D, and F.  I asked why no E? ❓

According to my #student the trains are copying the #flight system.  It used to be there were six letters . . . So A & F were #window seat, B & E were #middle seats, and C & D were #aisle seats.  Now if there is no middle seat, they skip that letter.  😜  The things I learn!

Coex Mall & Aquarium

27 Nov

Gangnam Style!

This past summer, a Korean song artist, Psy, produced what would become almost an instant hit–“Gangnam Style.”  Snappy, Fast-paced, Easy to listen to, the song captured the world’s hearts and minds (literally, that song is stuck in your brain once you hear it).

As the song professes, Gangnam (a district in Seoul located on the south side of the Han River) has a life all of its own.  Well known for its particularly high level of wealth and standard of living, Gangnam is basically the Korean version of Beverly Hills or upper-class NYC.  It houses many of the financial centers of the world economy, as well as the central offices for several international companies.  Naturally, the attractions are as amazing as the rest of the area; it is definitely one of the best places to wander around if you are a visitor.

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Travelling in a 외국의 (foreign) Land

8 Nov

Travelling–the great journey into the unknown.  Dun dun duunnn…  They tell you the world is vast, and you sort of understand that when you begin to travel.  But nothing quite seems to prepare you for that first step off the runway and into a whole new world.  Luckily, at least in the countries I have visited, that new world has seemed just familiar enough (they had normal American toilets and a Dunkin Donuts. . . always a plus) that I wasn’t completely dumped into culture shock.

However, I was recently asked by my supervisor to draw up some tips for fellow  students visiting countries where the language is a barrier.  I got to thinking about it, and I decided to focus on what I learned on my most recent visit to Korea.   By miracle alone, I had the luck to be roomed with a local girl for the first two weeks, or I have no idea what I would have done.  Travelling in a new country without the benefit of language proficiency is difficult, but there are a few things that can make your life so much easier.

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