Tech sector sources said that the amount being raised by the company was "staggering" against a backdrop which has seen funds fleeing new investments as they seeks to digest the implications of the coronavirus pandemic.
The warning comes after two Arizona news organizations, Phoenix New Times and ABC15, reported on travelers who said they were given misinformation from the unit owners about the danger of coronavirus when they tried to cancel trips and get refunds.
The startup, whose backers include SoftBank’s $100 billion Vision Fund, has been one of the two leading companies in the peer-to-peer car-sharing industry, where people can rent out their private vehicles online for hours or days.
Rachael Prasher, the Managing Director of What Car?’s parent company, Haymarket Automotive, said: “This is the right thing to do - for the industry and for us. I've heard it said a lot in the last few days but we are all in this together.”