Company: ZCARW
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076590
Chunk: 608

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part II, Item 1
Chunk 608
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 platform does not load as quickly as users expect, Hosts and Guests may not return to our platform
as often in the future, or at all, and may use our competitors’ products, services, or offerings more often. Although we have attempted
to prepare for contingencies through redundancy measures and disaster recovery plans, such preparation may not be sufficient, and we do
not carry business interruption insurance. Despite any precautions we may take, the occurrence of a natural disaster, such as an earthquake,
flood or fire, or other unanticipated problems in the jurisdictions where we operate, including power outages, telecommunications delays
or failures, break-ins to our systems or computer viruses, could result in delays or interruptions to our platform, our app and website,
and loss of data and business interruption for us and our Hosts and Guests. Any of these events could damage our reputation, significantly
disrupt our operations, and subject us to liability, which could materially and adversely affect our business, financial condition, and
results of operations.

Our business operations may result in losses
for which we are not insured. 

Our current business model
consists of a peer-to-peer car-sharing platform which facilitates sharing of vehicles between Hosts and Guests. In this context, we are
a facilitator of vehicle bookings but disclaim legal responsibility for cars owned by Hosts and for actions by Hosts and Guests on our
platform and during bookings. Our platform terms and conditions, inform the Hosts and Guests that booking, sharing, and using cars through
the platform is undertaken at their own risk; the lease agreement entered into between Hosts and Guests prior to each booking that occurs
in India also disclaims our responsibility for Host and Guest property and for other damages incurred in relation to bookings. We also
include in our platform terms and conditions a limit on our overall liability equal to the greater of the booking value of each trip and
$120. However, we cannot be certain of the extent to which such disclaimers and limitations would be upheld as legally enforceable in
every jurisdiction or circumstance. We regularly receive communication from Hosts (and from time to time, Guests) asserting that we are
responsible, and requesting reimbursement for damages to vehicles, lost property and other losses. All of our Guests pay a “value
added” trip protection fee as part of a booking, however, the amount available to us from Guest trip protection fees is not sufficient
to offset the amounts requested to cover the cost of all damages claims,