Wukong Rent-a-Car CEO Apologizes for Forced Insurance Sales
Chinese car rental platform Wukong Rent-a-Car has apologized following accusations of forcing customers to purchase expensive insurance upon vehicle pickup. The company has announced corrective measures.
Wukong Rent-a-Car, a Chinese car rental platform, is facing scrutiny after a customer reported being compelled to purchase approximately 4000 yuan in insurance for a vehicle initially rented for 1700 yuan. The incident occurred when the car was delivered to the customer.
The customer described the experience as a "low-price lure followed by high-price insurance charges." Reports indicate that refusal to purchase the additional insurance was met with threats, suggesting that any issues with the vehicle would not be covered without it.
In response, Wukong Rent-a-Car CEO Hu Xianhe issued an apology via video, acknowledging the situation and announcing that the company would implement corrective actions. He confirmed that the affected customer has been compensated and the involved merchant has been penalized.
Hu Xianhe cited intense industry competition, leading to rental prices sometimes falling below cost, which makes insurance sales a significant supplementary income for merchants. He asserted that Wukong Rent-a-Car is cracking down on forced insurance sales and promised full refunds to customers who report such incidents with proof of payment. Wukong Rent-a-Car was founded in 2014 and is headquartered in Beijing. It operates across 483 cities in China, offering a fleet of 200,000 vehicles for various services including short-term self-drive rentals, long-term leases, and corporate vehicle solutions.