Car-Sharing Firm EZZY Crashes

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Sharing Economy craze in China is finally facing some tough times. After some bikeshare, umbrella share, stroller share, basketball share problems, car sharing might be another casualty facing a meltdown. Ezzy, car-sharing startup has been disbanded and stopped service. Ezzy announced Wednesday that it will cease operations and close down, becoming the latest failure in China’s sharing economy craze.

Built on electric vehicles, Ezzy was known as the Mobike of cars. Last year, the company ventured into the higher end of the ride-share market by purchasing a fleet of BMW i3s and Audi A3s. The company allowed users to try its services before purchase through the Ezzy app in order to tap into younger costumers.

Beijing Da Dreams Technology Co. Ltd., which runs EZZY, told users in a text message on Wednesday that they should apply for a refund of their deposit. EZZY required users to pay a 2,000 yuan ($301) deposit, after which they could unlock and drive a car. The subsequent fee was based on the length of the drive.

According to an EZZY employee the closure was due to a capital crunch. There is no clue how many users will be affected.