(Yicai Global) May 18 -- Hangzhou Chekuailai Technology Co., which operates car-sharing platform Muggle, plans to phase out car rental services by May 20 amid a change in business strategy.

Any users who don't apply for a refund of their security deposit and balance will get them back automatically from June 1, the company said in a statement yesterday. Deposits will be returned directly into bank accounts and any outstanding balance will go to the users' WeChat Wallet.

The firm did not disclose what its new plans are. Its parent, Wuhan Yuanguang Technology Co., is best known as the operator of bus tracking app Chelaile.

Unlike ride-hailing platforms, like Didi Chuxing Technology Co., Muggle's car sharing services are for those who have a driving license but need to rent cars short term. The practice has become more popular as cars, particularly micro new-energy vehicles, become cheaper to make, though issues with parking and other problems still exist.  

Editor: James Boynton