Car sharing industry in China faces cash crunch
Not just ofos encountering a financial crisis, car-sharing companies are struggling amid the contracting economy too. A report credited to the state broadcaster China Central Television (CCTV) on Sunday disclosed the dilemma which they are in. The low utilization rate and high maintenance expense of vehicles are two obstacles that are blocking the development. However, Tan Yi, CEO of car startup Gofun, still sees a silver lining – by upgrading their fleet to “high-endurance” type vehicles and dispensing with lower quality ones, they have “passed the profit-loss balance line”.