(Yicai Global) Sept. 27 -- Users of Chinese bike-sharing platforms Coolqi Bike, operated by Coolqi Beijing Technology Co., and Xiaoming Bike, run by Guangzhou Yueqi Information Technology Co., are struggling to get back their deposits, Beijing News reported today.

Coolqi is facing a cash crisis and could be close to shutting down, while Xiaoming has been called in by the Shenzhen Consumer Council over the matter, the report added, suggesting that the nation's bike-sharing sector could be due another flogging from regulators.

Some users applied for their deposit back from Coolqi two months ago, and still haven't received it. The bike-sharing firm has responded by saying it is frequently rolling out new functions, which are causing system problems and delaying the return of deposits to some users, the report said.

However, Coolqi's human resources department informed its staff on Sept. 22 that the firm was undergoing a cash crunch that could affect operations. The letter said staff would still be paid their wage, but warned payment may not be on time. It offered up the chance for workers to resign and receive their outstanding salaries on Sept. 30, though they would not receive performance-based bonuses or other subsidies.

Xiaoming's failure to return deposits has also caught official attention. Shenzhen Consumer Council has already had words with the company after receiving a flood of complaints from customers unable to claim back their deposits.

"Online rumors caused consumer panic," a Xiaoming representative said. "This lead to a large number of applications for deposit returns which crashed our system. That, combined with insufficient service workers, led to a sharp increase in complaints." The consumer council stepped in and told the firm to ramp up investment in customer service and technological development, speed up deposit returns and work to achieve an instant refund system for users who have returned their bikes as normal.

The bike-sharing industry isn't profitable yet, so some company owners could abscond with the cash from deposits, said Ding Daoshi, a veteran internet observer.

The internet industry has a window period of just six months, meaning late-comers in the bike-sharing sector have few opportunities. Smaller bike-sharing providers will find it more and more difficult to survive, insiders said.

Though Beijing Bikelock Technology Co., which runs Ofo, and Beijing Mobike Technology Co., which runs Mobike, dominate the market, they still need to pump large amounts of money into operations every month, said Zhu Xiaohu, an Ofo investor, adding that the two may only become profitable if they merge.

The industry landscape has already been outlined, he said, pointing out Ofo and Mobike's combined market share of 95 percent.