China consumer watchdog takes aim at bike-sharing firm Kuqi over failure to refund deposits
Kuqi Bike has ceased trading, potentially tying up millions of yuan in users’ deposits and highlighting a growing problem in the industry as a shakeout threatens to put more out of business
China’s consumer watchdog has told bicycle-sharing firm Kuqi Bike to return deposits to its users after it ceased trading, as concerns rise about the estimated billions of yuan tied up after a number of similar companies in the industry have run into difficulties.
In an open letter dated Tuesday, the China Consumers Association demanded that Kuqi clarify how the deposits it collected had been used, provide ways to refund the money and assume its legal responsibilities.
“The deposits consumers put down for rental activities are their own property. No company shall have the right of disposal. They should be refunded immediately once the renting is completed,” the association said in the letter.
Beijing-based Kuqi has ceased trading after only a year in business and has been taken over, according to its official Weibo account. It had 16 million registered users, an unknown number of whom had paid deposits of 298 yuan (US$45) each.
The Consumers Association said in the letter that Kuqi had given a fake address for people seeking deposit refunds, and that it had received over 210,000 complaints about the company since August.
Attempts to reach Kuqi were unsuccessful. The three mobile numbers and a hotline it left on its Weibo account for deposit refunds were either engaged or turned off.