Photo credit: Zoomcar
Zoomcar has announced that it will stop its business operations in Vietnam due to unfavorable market conditions and complications in the self-drive car rental service.
The company said it will fulfill its obligations to all customers, car owners, and suppliers shortly. It will stop accepting rides from May 24 and will pay weekly payments and bonuses to car owner partners until June 30. Zoomcar Vietnam will also contact each supplier to agree on plans moving forward.
“Vietnam possesses a great potential market for the car rental industry. However, it requires additional time and effort to educate and change customer behaviors to fully embrace this service,” said Nhut Nguyen, operations lead for Zoomcar in Vietnam, in a LinkedIn post.
India-based Zoomcar launched its service in Vietnam in 2021. The rollout was part of its efforts to extend its reach into Southeast Asia, having planned to pump over US$100 million into the region.
See also: Nasdaq-bound Zoomcar takes SPAC route despite bear warnings
Around the time of its launch in Vietnam, the company raised US$92 million in a private placement to fuel its expansion plans and to bankroll the setup of its US office ahead of its listing.
Editing by Lorenzo Kyle Subido
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