Indian car rental platform ZoomCar has quit the Vietnamese market after operating for over a year, citing difficulties and further challenges ahead.
Addressing car owners in an announcement Tuesday afternoon, it promised however to fulfill all obligations to them and customers.
Technicians will set up a schedule with the owners to collect the equipment installed on their vehicles.
They will be paid their dues by June 30.
ZoomCar was launched in 2013 in India as a platform connecting people owning cars with renters, and came to Ho Chi Minh City in early 2022.
It had earlier considered investing US$25 million in Vietnam.
Within the first four months of coming to Vietnam it had around 1,000 cars for lease, and offered large discounts to both renters and owners.
But the discounts started to dwindle gradually.
Ky, an owner in HCMC’s District 8 since March last year, said he was surprised to learn about the company’s exit.
He had been making less and less money from leasing his car on the app since six months ago.
“The company took a commission of 40% on each trip, which is high, and forced car owners like us to list our vehicle on the platform all the time.”
Recent economic difficulties have reduced demand, he added.