Zoomcar has assessed the business conditions in Vietnam to be excessively challenging and expects them to persist. The company is committed to fulfilling its obligations to customers and partners.
This service announced to leave Vietnam after entering the market from the end of 2021. Photo: Zoomcar.
Zoomcar, a self-drive car rental application from India, has recently announced the cessation of its operations in the Vietnamese market, citing general market conditions and specific difficulties in the self-drive rental service. Zoomcar even forecasts that the situation will continue to be complex in the coming period.
“Zoomcar Vietnam regrets to announce the discontinuation of its business operations in the Vietnamese market. Zoomcar Vietnam commits to fulfilling its obligations to all customers, vehicle owners, and suppliers in the near future,” stated the application.
For customers, the application and website provided by the company will stop accepting bookings from 12:00 a.m. on May 24. Bookings confirmed before this time with trip end times before 11:59 p.m. on May 28 will still be serviced as usual.
However, trips scheduled to end after 12:00 a.m. on May 29 will be canceled according to Zoomcar’s policy.
The application pledges to process payments for trips as usual, according to the agreed-upon terms, until June 30 for vehicle owners. The schedule for revenue and weekly bonuses remains unchanged until the final trips conclude.
The technical team of Zoomcar Vietnam will contact vehicle owners separately to arrange the retrieval of equipment. This process aims to ensure safety and information security for partners after the company ceases its business operations in Vietnam.
Regarding suppliers, the company will reach out to each party to coordinate specific plans in the coming period.
Founded in 2013, Zoomcar is a startup from India operating in the car-sharing sector in developing markets in Asia. With a capital-efficient business model, this platform connects car owners with customers who have flexible needs for business or leisure purposes. Apart from Vietnam and its home country India, the company also has a presence in Indonesia and Egypt.
Zoomcar focuses on markets with developing transportation means, based on the average vehicle ownership rate below 10% in core markets. It is estimated that this market will achieve $90 billion in revenue across regions by 2025.