Budding luxury peer-to-peer car sharing service HiGear has been forced to shut down after a ring of car thieves stole four cars worth about $300,000.
Prior to the thefts, San Fransisco-based HiGear had enjoyed quick growth thanks to the appeal of the high-end cars it offered, which included models from Aston Martin, Lamborghini, BMW and Tesla. The company had successfully expanded to L.A. in November, was also planning expansions to Portland and San Diego and was projecting growth of 200 percent over the next three months.
Ultimately, the premium cars that attracted customers were also the downfall of the company, as thieves tempted by the ritzy vehicles used fake identities and stolen credit cards to make off with $300,000 in vehicular loot. HiGear’s security measures, which include member screening, driving record and credit checks, simply weren’t enough to deter the criminals.
Though “some” of the cars stolen have been recovered, the company decided that potential future risk of similar thefts was simply too great to continue operating, even with the comprehensive liability insurance it provided to customers.
Still, HiGear mentioned in a written statement to members that it believes similar peer-to-peer car sharing outfits that specialize in more mundane vehicles aren’t as likely to be targeted by serious thieves. “Criminals get a better return for their efforts with more expensive vehicles. At this time we believe that Getaround, RelayRides and other similar P2P services offer adequate safety procedures and protection. We encourage you to try the other services if you would like to continue renting out your car,” the company wrote.
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1.’Thefts force peer…’ view
