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San Francisco-based HiGear, a peer-to-peer car-sharing account focused on affluence vehicles, is shutting bottomward due to annexation incidents involving its members’ cars. According to CEO Ali Moiz, the aggregation will accelerate out an email tomorrow to its associates with a abounding explanation. The account may appear as a shock to some, accustomed that HiGear was acutely accomplishing so able-bodied in contempo months. The aggregation had broadcast to L.A. in November, and was planning expansions to added markets, including Portland and San Diego, by year-end.

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Unlike added car-sharing services, HiGear specialized in “high-end” auto brands only, like Mercedes, BMW, Audi, Aston Martin, Lamborghini and Tesla. It provided absolute accountability and collision insurance and performed affiliate screening, which included active almanac checks and acclaim checks. It additionally calm a aegis drop in adjustment to “encourage safe and fair use of members’ cars.” In added to the rental fee ($125-600, depending on the car), drivers would pay $20-40 per day in rental insurance.

These protections accepted to be insufficient, however, when HiGear was targeted by a bent ring. The accumulation blanket four cars accretion $400,000. The abyss acclimated baseborn identities to bypass HiGear’s aegis checks, and baseborn acclaim cards to pay HiGear’s fees. Badge accept back recovered some of the cars and allowance is now processing claims for the rest, but the adventure has affected HiGear to apprehend that this array of affair may not be preventable in the future. A ages afterwards the incidents occurred, the aggregation fabricated the boxy accommodation to append operations and shut the business down. Abounding capacity will be beatific out to associates tomorrow via the afterward email (below):

Dear Member,

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I am autograph to you today with some sad news. Afterwards a abundant run the accomplished few months, we accept absitively to shut HiGear bottomward and abandon the service. I accept this may appear as a abruptness back the account seemed to be accomplishing so well. HiGear, in the abbreviate amplitude of 6 months back launch, got over 5000 associates and 300 affluence cars listed. We candy hundreds of rentals anniversary ages and got covered by Techcrunch, the Wall Street Journal and added boilerplate press. About an adventure aftermost ages showed us the inherent accident with the peer-to-peer attributes of our service. 

Last ages 4 cars were baseborn on HiGear by a bent ring. The absolute amount of these cars was about $300,000. While our allowance is processing the claims for reimbursement, and the badge accept back recovered some of these cars, this adventure complex adult abyss application character theft, baseborn acclaim cards and baseborn IDs to bypass all the accomplishments checks that we had put in place. This adventure apparent us to the worst-case risks inherent in our service. Even by convalescent aegis and processes, we are not absolutely abiding we can anticipate an adventure of this array from accident afresh accustomed the peer-to-peer attributes of our service. It is difficult to annihilate character artifice absolutely on the internet. Companies like Amazon, Google and Ebay lose millions anniversary year because of it. About back you admixture that with the sum of ample losses (the boilerplate HiGear car is account $70,000), it creates an bottomless situation. 

New anxiety were abeyant on HiGear anon afterwards this incident. We spent a few weeks aggravating to see if situations like these could be prevented in the approaching affordably. Unfortunately, the aftereffect of our investigations has been that in adjustment to best assure car owners and their cars, HiGear needs to be shut bottomward to anticipate organized abomination from demography advantage of the account again. 

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We do not accept added peer-to-peer casework that focus on economy, accustomed cars are at the aforementioned akin of accident of theft. Abyss get a bigger acknowledgment for their efforts with added big-ticket vehicles. At this time we accept that Getaround, RelayRides and added agnate P2P casework action able assurance procedures and protection. We animate you to try the added casework if you would like to abide renting out your car. 

In the meantime, feel chargeless to browse through the HiGear cars and girls while the account is still available. Save your admired as your desktop wallpaper. We’ll absence HiGear as abundant as you. It was a amusement to accommodate this account for our members, and to accompany beatitude to bags of bodies by accepting them into the car of their dreams. 

Feel chargeless to address to myself or Murti alone with any questions or comments. 

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Sincerely,

Ali & Murti

After its beta barrage in August, HiGear announced in November it had logged over 25,000 hours of car shares. Over 2,000 of those hours were in L.A., area it had aloof arrived, advertence abeyant for added growth. At the time, Moiz said that if the accepted advance amount continued, he accepted to see 40,000 to 50,000 hours over the abutting 90 days.

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