SINGAPORE: Car-sharing company Shariot announced on Dec 31 that it has paused its vehicle rental services “until further notice”.
Shariot said in a Facebook post on Dec 31 that the move is “part of an internal business restructuring and service review”.
“This pause allows us to realign our operations and assess the next phase of our service direction,” it said.
“We sincerely appreciate your understanding and continued support during this period. Updates will be shared should there be any changes.”
In comments on Shariot’s Facebook post, customers expressed surprise at the sudden announcement. Some asked about refunds for payments made for bookings for later timeslots on Dec 31.
Several customers also asked Shariot how they would retrieve their belongings within the vehicles, given the company’s fleet is completely keyless and vehicles are accessed through the app.
The Straits Times has contacted Shariot for more information.
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, including the repossession of assets, while they work out a proposed scheme of arrangement.
According to documents, the companies collectively owe S$305.9 million (US$237.9 million) to various financial institutions, businesses and government agencies, including DBS, UOB and OCBC banks.
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.
These companies handle different facets of the group’s 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.
Most of the debts are related to vehicle hire-purchase agreements, with the remainder comprising business loans, mortgages and fees for services.
In August, another car-sharing company, BlueSG, announced it would be winding down its operations, citing a major platform upgrade to better serve the “evolving needs of urban mobility” in Singapore as the reason behind the move. The company then disposed of its entire fleet of hundreds of electric vehicles. - The Straits Times/ANN
