State-Backed Chinese Car-Sharer Struggles to Pay Back User Deposits
Zhang Yushuo
/SOURCE : yicai
State-Backed Chinese Car-Sharer Struggles to Pay Back User Deposits

(Yicai Global) Jan. 23 -- GoFun, a unit of state-backed Shouqi Group, is checking technical issues on its Chinese car-sharing platform after users complained that they were unable to cash-out their deposits.

"Our technical staff are still looking into the reason why refunds through WeChat have been unsuccessful," a source at the company told Yicai Global. "We will verify the issue and refund the deposits as soon as possible."

Users have trouble receiving refunds on their CNY699 (USD102.7) deposits since the turn of the year, according to China News Service, with the Beijing-based firm previously blaming system problems.

Some users reported that it is taking up to one month to get their money back, compared with the five-to-seven-day period stated on the GoFun app.

China's once-thriving sharing economy has been rocked in recent times as users struggle to get their deposits back. Major bike-sharer Ofo has suffered from such issues recently.

Set up in 2016, GoFun covers nearly 80 cities across the country, with its coverage of first-tier cities growing at a rate of 15 percent and that of the second-tier cities rising 44 percent annually. 

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Keywords: GoFun , Car Sharing , Deposit