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.
Vehicle-sharing firm Togo has become the latest Chinese sharing platform to face problems regarding the repayment of user deposits. With customers in Beijing, Shenzhen and Chengdu all reporting complaints about delays in receiving their CNY1,500 ($218), the company has joined a growing list of firms in the sharing economy that have faced cash flow issues. The company, which is based in Shenzhen, said it had received more than 10,000 deposits from users since its launch on June 30.