Private Hire Vehicle (PHV) drivers in Singapore faced a sudden disruption over the past week after rental cars linked to Autobahn Rent A Car were repossessed and towed away. This came after Autobahn and its related companies failed in their bid to secure a temporary suspension of obligations through the courts. As a result, many drivers who relied on these vehicles for daily or weekly rentals were left without cars, and in turn, without work, at a time when the year was drawing to a close.
Court proceedings involving Autobahn
According to reports by The Straits Times, Autobahn Rent A Car, and its linked companies operate a fleet of about 1,700 vehicles, most of which are rented out under hire purchase arrangements. The group had applied for creditor protection, including a six-month moratorium that would have paused debt repayments. The Business Times reported that the group owed a total of S$371.5 million to 58 creditors.
Among the largest creditors were DBS, which owed S$102.6 million, Teck Wei Credit with S$74.2 million, and Toyota Financial Services with S$43.1 million. On Dec. 26, the High Court rejected Autobahn’s application. If approved, the application would have protected the company from creditor actions and allowed it to restructure under a scheme of arrangement. Instead, the court decision opened the door for creditor action and insolvency proceedings, which could include liquidation.
Why were cars repossessed?
An automatic moratorium, which usually provides a 30-day pause when a restructuring application is filed, expired on Dec. 26. With this lapse, creditors were legally allowed to act. Since the vehicles belong to Autobahn and the company had failed to service its debts, creditors had the right to repossess assets, including cars that were still being rented by PHV drivers.
On Dec. 29, Autobahn filed an appeal against the High Court decision and asked for expedited hearings, according to a Business Times update. The appeal involved a potential Singapore Exchange-listed investor who had shown interest in the group and could prevent liquidation.
Drivers react online
Many affected drivers took to social media to share their frustration. In a Dec. 29 Facebook post on the group Professional PHV Drivers Singapore, drivers discussed the sudden towing of vehicles and asked whether the National Private Hire Vehicles Association could step in “to protect PHV livelihoods.”
In another post dated Dec. 28, drivers questioned whether they would be able to recover their rental payments and security deposits after their cars were repossessed. A separate post on Dec. 30 warned renters to clear their personal belongings from the vehicles and to avoid owing the company more than their current deposit.
One driver, Wu Xiao Ming, shared details of his conversation with an Autobahn representative. He alleged that the company asked him to “pay last week’s rental and they will give me this week’s rental for free to offset the deposit.” According to an explainer post by former presidential candidate Tan Kin Lian, deposits typically range from “S$500 for a used car and $1,000 for a new car.”
Company response and platform reactions
Earlier on Dec. 26, Autobahn management posted a letter on Facebook to reassure customers after the court decision. The letter stated, “During this period, the Company’s business operations will continue as usual. Vehicle usage and hirer arrangements remain in force, and all services will continue to operate under normal terms.” Despite this, Autobahn’s website later showed a “coming soon” message when users clicked on the car rental section.
Ride-hailing platforms said they were monitoring the situation. A Grab spokesperson said, “We’ve heard about what’s happening with Autobahn and will be getting in touch with the affected driver-partners to see how we can help them with the transition and get back on the road.” Tada also confirmed awareness of the situation, saying it would continue to support drivers and provide assistance where possible.
NPHVA and NTA Lead Tripartite Response
The National Private Hire Vehicles Association (NPHVA) and the National Taxi Association (NTA) have called for an immediate tripartite response to protect driver livelihoods. Working alongside the LTA and major platform operators, the associations are addressing urgent concerns regarding vehicle repossessions, the recovery of security deposits, and clarity on contract terms.
NTUC Assistant Secretary-General Yeo Wan Ling emphasized that the associations take these hardships seriously. The priority is to help affected drivers return to the road as quickly as possible through coordinated support.
Support from Platform Operators
To minimize downtime, various platform operators have introduced favorable leasing terms for affected drivers:
- ComfortDelGro: Offering $0 driveaway and security deposit waivers. They provide flexible rental options and additional incentives to help drivers recover lost income.
- Grab: Providing $0 deposits for GrabRentals mileage cars and completion bonuses of up to $1,000. They are also protecting drivers’ loyalty tiers to maintain earnings eligibility.
- STRIDES Premier: Offering rentals from $75 per day with no deposit required. The first three days of rental are free, and drivers can travel to West Malaysia at no extra cost.
Legal Assistance for Members
Affected NTUC members who have questions about their contractual obligations or security deposits with Autobahn can seek guidance through the union. Legal assistance is available via NTUC’s legal clinic to help drivers navigate their rights and handle the ongoing financial challenges.
