Shariot pauses vehicle rental services, citing 'internal business restructuring and service review'

SINGAPORE: Car-sharing company Shariot has paused its rental services until further notice, citing "internal business restructuring and service review".

"This pause allows us to realign our operations and assess the next phase of our service direction," the company said in a Facebook post on Wednesday (Dec 31).

It added that it would share updates "should there be any changes".

Customers were left surprised and confused by the sudden announcement. Posting comments under Shariot's Facebook post, some asked about refunds for bookings made, while others said their belongings were still in the vehicles they had booked.

Shariot is part of a group comprising multiple related automobile companies, which include Autobahn Rent A Car.

According to a November report by The Straits Times, Shariot was among nine related companies that requested their creditors to hold off on recovering debts while they explored restructuring options.

Shariot, Autobahn and seven other companies are reportedly interlinked in terms of their financial, operational and fleet-related arrangements and have the same shareholders.

In December, The Straits Times reported that a group of 18 related companies, including Shariot and Autobahn, had applied to the High Court for a six-month moratorium to halt creditor actions.

Creditors included DBS, UOB and OCBC, and the companies reportedly owed up to S$306 million.

Shariot and Autobahn have yet to respond to CNA's queries.

The suspension of Shariot's car-rental services has affected ride-hailing drivers.

ComfortDelGro said it is actively working to "help the affected drivers maintain their livelihoods and professional stability by providing access to vehicles from our own private hire vehicles and taxi fleets". 

Affected drivers should reach out to ComfortDelGro, a spokesperson added.

Grab told CNA on Wednesday that it was aware of the situation concerning Autobahn and would be contacting affected driver-partners to see how the company could help them with the transition.

Ryde said it is supporting affected drivers by facilitating alternative rental options. 

"Drivers who are impacted are encouraged to contact Ryde Support via the in-app Help Centre so we can assist them promptly," said a spokesperson.

TADA said it was not directly involved in the contractual arrangements between drivers, vehicle owners or rental companies, as its drivers own or rent their vehicles independently. 

"However, the well-being of our driver community is our priority. We will continue supporting our drivers and provide assistance wherever possible to ensure their experience with us remains safe and reliable," it said.

CNA has contacted the National Private Hire Vehicles Association for comment.

Previously, in August, car-sharing firm BlueSG announced that it would be suspending operations, which caught users off guard. 

The company had also told CNA then that the move would impact "a portion" of its workforce, adding that affected employees would receive "fair severance".

Calling it a "strategic pause", BlueSG had said in a media release that it will launch a new service in 2026.