[SINGAPORE] Car-sharing company Shariot announced on Dec 31 that it has paused its vehicle rental services \u201cuntil further notice\u201d.<\/p>\n
Shariot said in a Facebook post that the move is \u201cpart of an internal business restructuring and service review\u201d.<\/p>\n
\u201cThis pause allows us to realign our operations and assess the next phase of our service direction,\u201d it added.<\/p>\n
In comments on Shariot\u2019s Facebook post, customers expressed surprise at the sudden announcement. Some asked about refunds for payments made for bookings for later timeslots on Dec 31.<\/p>\n
Several customers also asked how they would retrieve their belongings within the vehicles,\u00a0given the company\u2019s fleet is completely keyless\u00a0and vehicles are accessed through the app.<\/p>\n
The Straits Times<\/em> has contacted Shariot for more information.<\/p>\n In December, Shariot and 17 related firms, including Autobahn Rent A Car, applied to the High Court for a six-month moratorium to halt creditor actions<\/a>, including the repossession of assets, while they work out a proposed scheme of arrangement.<\/p>\n According to documents, the\u00a0companies collectively owe S$305.9 million\u00a0to various financial institutions, businesses and government agencies, including DBS, UOB and OCBC banks.<\/p>\n The court application also mentioned that the group of companies were interconnected functionally and financially, adding that the various companies were formed or acquired over time as the business developed.<\/p>\n SEE ALSO<\/p>\n These companies handle different facets of the group\u2019s automotive business, including motor workshop and repair, fleet management for ride-hailing service drivers, leasing for partner companies, and the management of multiple pools of vehicles financed under various lenders.<\/p>\n Most of the debts are related to vehicle hire-purchase agreements, with the remainder comprising business loans, mortgages and fees for services.<\/p>\n In August, another car-sharing company,\u00a0BlueSG, announced it would be winding down its operations, citing a major platform upgrade to better serve the \u201cevolving needs of urban mobility\u201d in Singapore as the reason behind the move. The company then\u00a0disposed of its entire fleet of hundreds of electric vehicles. THE STRAITS TIMES<\/a><\/p>\n Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter.<\/span> Delivered to your inbox. Free.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/a><\/div>\n<\/div>\n<\/div>\n<\/div>\n
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