Company: ZCARW
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076590
Chunk: 620

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part II, Item 1
Chunk 620
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 Hosts and Guests on our platform. For example, we have in the past received, and expect to continue
to receive, complaints from Hosts regarding damage to, or loss, theft, or impounding of, their vehicles and requests for damage reimbursement,
and from Guests regarding quality or serviceability of the vehicles, other safety and security issues, and actual or perceived discrimination
in connection with Hosts declining trips and requests for reimbursement of their trip fees, as well as actual or threatened legal action
against us if no reimbursement or perceived incomplete reimbursement is made. In addition, some of our Hosts may list or have listed vehicles
on our platform in violation of their lease or financing agreements or personal automobile insurance policies, or in violation of applicable
legal restrictions on subleasing. Except for the examination of vehicle registration certificates at the time of the Host onboarding and
listing process, we do not screen vehicles for compliance with safety standards or make efforts to determine whether they are legally
registered to be driven on public roads, and it is possible that some vehicle registration certificates may be forged, or some of our
Hosts may list or have listed vehicles on our platform that fail to meet basic safety or legal requirements for a vehicle. Our trust and
safety checks and qualification procedures may not be capable of identifying all quality and safety issues, including safety recalls,
and our systems are not designed to identify legal, quality, and safety issues that may occur after initial sign-up. Consequently, we
could be and have been subject to liabilities incurred from local or state regulators and courts regarding the activities of Hosts and
Guests on our platform or related legal, safety, and security issues.

If we are found to be subject
to liability or claims of liability relating to the acts of Hosts or Guests, or for failure to pay fees, fines, or taxes owed by them,
we may be subject to negative publicity or other reputational harm, even if we are not found to be subject to such liability, and this
may cause us to incur additional expenses, which could harm our business, results of operations, and financial condition.

Host, Guest, or third-party actions that
are criminal, violent, inappropriate, dangerous, or fraudulent may undermine the trust and safety or perception of trust and safety of
our marketplace and our ability to attract and retain Hosts and Guests, which could materially and adversely affect our reputation, business,
results of operations, and financial condition. 

We have no control over or ability to predict
the actions