In 2025, approximately 12% of the car rental industry faced closure, with 227 companies ceasing operations by December 24, according to reports from CNA. The total number of entities engaged in private car rentals without drivers stood at 1,634 as of the same date. Recent notable failures include AutoBahn Rent A Car, which oversaw its car-sharing subsidiary Shariot and has amassed debts exceeding S$300 million.
Shariot halted its rental services on December 31, citing the need for “internal business restructuring and service review.” The situation has prompted organizations such as the National Trades Union Congress and the Land Transport Authority to initiate support measures for affected drivers, who are left without vehicles needed for their livelihoods. Assistant Secretary-General Yeo Wan Ling emphasized the significant hardship this has caused for many.
Challenges within the industry have been linked to unsustainable investments and aggressive pricing strategies, as noted by industry experts. Kenneth Lee from the Vehicle Rental Association highlighted that some companies overextended themselves with debt while neglecting profitability in favor of market expansion, leaving them vulnerable as economic conditions fluctuate.