Singapore’s car-sharing and rental landscape is facing turbulence, as multiple companies linked through shared ownership seek breathing room from creditors amid mounting debts. A group of 18 firms, including Shariot and Autobahn Rent A Car, applied for a six-month moratorium on debt recovery in December, signaling widespread financial strain.
Restructuring Efforts Underway for Car Rental Groups
Several car-sharing and rental companies in Singapore are attempting to restructure their finances while facing notable debt obligations.
- Shariot and Autobahn Rent A Car are among 18 companies seeking protection from creditors.
- Teh total debt reportedly reaches up to S$306 million.
- BlueSG previously announced a suspension of operations in August.
- Creditors include major Singaporean banks DBS, UOB, and OCBC.
What’s happening wiht car-sharing companies in Singapore? Several car-sharing and rental businesses are currently navigating financial difficulties, with a collective debt of up to S$306 million, and are seeking a temporary halt to debt recovery proceedings.
according to a November report, Shariot was one of nine related companies that requested creditors postpone debt collection while exploring restructuring options. These companies-Shariot,Autobahn Rent A Car,and seven others-are interconnected through financial,operational,and fleet arrangements,and share common shareholders.
The move follows a similar announcement in August when car-sharing firm BlueSG announced it would suspend operations, catching users by surprise. The company stated at the time that the suspension would affect a portion of its workforce, but that impacted employees would recieve “fair severance.” BlueSG described the move as a “strategic pause” and indicated plans to launch a new service in 2026.
Creditors involved in the moratorium application include DBS, UOB, and OCBC. Representatives from shariot, Autobahn Rent A Car, Grab, Gojek, CDG, TADA, Ryde, and the National Private Hire Vehicles Association have been contacted for comment.
Why is this happening? The financial strain stems from a combination of factors, including high operating costs, competition, and perhaps changing consumer behavior post-pandemic. The interconnected nature of the companies exacerbates the problem, as difficulties at one firm can quickly ripple through the others.
Who is affected? The companies involved – including Shariot and Autobahn Rent A Car – are directly affected, as are their creditors (DBS, UOB, OCBC, among others). users of these services may experience disruptions, and employees face potential job losses.
How did it end? As of December 2023, the situation is ongoing.The companies have applied for a six-month moratorium on debt recovery, which, if granted, will provide them time to restructure. The outcome of this restructuring process remains uncertain.BlueSG’s suspension is a separate,though related,event,with plans for a relaunch in 2026.