Singapore’s car leasing sector has experienced significant turbulence in 2025, with more than 220 firms shutting down operations, leaving a number of private-hire and other drivers without vehicles and uncertain about their livelihoods. 

Industry observers say the wave of closures stems from financial stress among major operators and broader market pressures. High-profile companies, including car-sharing service providers and leasing groups, have grappled with mounting debts, cost pressures and declining returns in the face of rising operational costs. 

Among the affected operators is a well-known car-sharing brand that announced a pause in its vehicle rental services towards the end of 2025 as it conducts an internal business restructuring and service review. 

Drivers who depend on leased vehicles have described abrupt cancellations, last-minute fleet recalls and repossessions that have left them scrambling for alternatives. Some reported returning vehicles earlier than planned after learning about the companies’ financial troubles, and others have expressed concern about unresolved outstanding payments or future work prospects. 

Analysts note that several leasing companies and car-sharing firms have sought creditor reprieves and restructuring options, with some exploring judicial moratoriums to halt winding-up actions as debts mount into the hundreds of millions of dollars. 

The upheaval has prompted calls for clearer industry safeguards and better support mechanisms for drivers whose incomes hinge on access to reliable leased vehicles, even as firms and financial institutions work through complex restructuring negotiations.