Zhou Hang, founder and CEO of ride-hailing service Yidao Yongche (易到 in Chinese), admitted yesterday in a statement that the firm has cash problems. He blames this on its controlling shareholder LeEco diverting to other purposes an RMB 1.3 billion fund originally earmarked for the firm, our sister site TechNode Chinese is reporting.

Zhou made the statement in response to a stream of negative publicity about the firm’s troubled operations recently.

Rants and complaints against the ride-hailing service have kept growing over the past few months. Drivers of the ride-hailing service feel aggrieved for being unable to receive their payments from the car-hailing platform, while passengers grumbled that there are often no cars available even if they opt to pay higher fees for their trips, and found it difficult to have their prepaid funds refunded.

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Sheila Yu

Sheila Yu is a Shanghai-based technology writer. She brings readers the biggest news from Chinese language tech media. Reach her at sheila@technode.com.