Caixin Global – Latest China News & Headlines

Home >

by Isabelle Li / Dec 17, 2018 07:54 PM / Business & Tech

Users of yet another sharing service are having trouble getting their deposits back. 

This time it is the vehicle-sharing venture Togo that is having refund issues, local media reported Monday.

Users in Beijing, Shenzhen and Chengdu have complained that they are having unexpected difficulties getting their deposits back from the platform.

The amount of the deposit is 1,500 yuan ($218), five times more than the typical deposit for bike-sharing services in China.

Under Togo’s user agreement, the company is supposed to return user deposits within seven days of a refund request, the Beijing Daily reports. However, some users have been waiting more than two months for their refunds.

China’s internet industry embraced a shared economy boom in recent years, but several companies have suffered deposit refund problems as cash flow pressures have weighed in on these "innovative" platforms.

The scandal comes as a surprise given that Togo had just announced in October that it had raised tens of millions of dollars in its latest round of fund raising. In addition to Togo, many other car-sharing services, such as that of online services giant Meituan, have been shuttered or sold off due to financial problems, according to previous media reports.

Share this article
Open WeChat and scan the QR code