Car-sharing company Shariot said on Wednesday, December 31, that it has paused its vehicle rental services "until further notice", citing an internal business review and restructuring process.
In a Facebook post on Wednesday, the company said the suspension was "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."
The announcement prompted swift reactions from customers, many of whom expressed surprise in the comments section of the post.
Some users asked about refunds for payments already made for bookings scheduled later on December 31. Others raised concerns about retrieving personal belongings left inside Shariot vehicles, noting that the company's fleet is fully keyless and accessed only through its mobile application.
The pause in services comes amid wider financial difficulties within the Shariot group. In December, Shariot and 17 related companies, including Autobahn Rent A Car, applied to the High Court for a six-month moratorium to suspend creditor actions such as asset repossession, while they work on a proposed scheme of arrangement.
Court documents show that the companies collectively owe $305.9 million to financial institutions, businesses and government agencies, including DBS, UOB and OCBC banks.
The application stated that the companies are functionally and financially interconnected, having been formed or acquired over time as the business expanded.
The group's entities manage various aspects of its automotive operations, including motor workshop and repair services, fleet management for ride-hailing drivers, leasing for partner firms, and the management of multiple vehicle pools financed by different lenders.
Most of the outstanding debt is linked to vehicle hire-purchase agreements, with the remainder comprising business loans, mortgages and service-related fees.
Shariot's move follows similar developments in Singapore's car-sharing sector.
In August, fellow car-sharing operator BlueSG announced it would wind down its operations, citing a major platform upgrade to better meet the "evolving needs of urban mobility" in Singapore. The company later disposed of its entire fleet of hundreds of electric vehicles.
