· Zero sharing game between car sharing platforms

Founder and CEO of Baojia Renting Car
In the past 2014, although the concept of car sharing has just been recognized by the people of the country, this does not prevent the car sharing platforms that have emerged from the announcement of the collective financing of financing. This reflects the huge potential of the domestic car rental market and the huge advantages of car sharing car rental compared to traditional car rental in terms of cost performance and convenience.
With the gradual improvement of people's living standards, the demand for convenient travel will become stronger and stronger. However, the traffic network capacity and economic structure of first-tier cities in China have determined that it is impossible for all people to purchase private cars. This kind of rapidly increasing demand for automobiles will eventually be released to the rental market. This is only time. problem. In fact, it is the same. According to the prediction of Roland Berger, an internationally renowned consulting firm, China's self-driving car rental market reached 38 billion yuan in 2014 and will grow rapidly at a compound annual growth rate of 27% in the next five years. However, although the prospects of the car sharing model are consistently optimistic, this does not mean that the future of each car sharing car rental platform will be even better. Compared to the traditional car rental industry can achieve the status quo of thousands of car rental companies, the car sharing field is much more cruel. The reason is that, like almost all Internet e-commerce platforms, there is a zero-sum game between the car sharing platforms. Absolutely you are born and dead, and it is impossible for many to coexist. This determines the staking between the car sharing car rental platforms. Accelerating and fierce competition, there will be no more than three companies in this field that will survive in the future, and most of them will soon be eliminated, just like the group buying industry in previous years.
I think this watershed is the $30 million Series A financing of the car rental car in December 2014. This is the largest A-round financing of the car-sharing car rental industry to date, and the financing amount of 30 million US dollars exceeds the sum of the A-round financing amount of several other competitors in the car-sharing industry. This means that after the business model and market prospects of car sharing car rentals are unanimously recognized, the capital market begins to bet on some advantageous platforms, hoping to accelerate the integration through the power of capital, which means that the domestic car sharing car rental market has entered the stage of card competition. The fierce competition between car sharing car rental platforms will be inevitable.
The more cruel the market is, the more it needs to have sufficient ammunition reserves. Of course, sufficient capital only allows the platform to qualify for competition. The ability to have sufficient localized operations and rapid expansion is the key to the success of a car-sharing project. The car sharing car rental platform is not just an Internet project. The localization characteristics of the car rental source and the source of the car also require the core team to have strong localization operation capability and the management capability to lead the company to expand rapidly in a short period. The city goes to the source and customer resources one by one. Obviously, the strategic investment cooperation with Ping An (601318, shares) and 58 cities can further strengthen the ability of Baoding car rental localization vehicles and users.
The reason why Baojia Renting Car can continue to be favored by investors within half a year is that Baochao Car Rental has the most complete credit information system and risk control system in the industry while maintaining high growth. In fact, Baojia Car Rental is by far the only car rental platform in China that maintains a “0” loss rate. Because it is different from the heavy asset model of the traditional car rental company's self-purchased vehicle expansion, the car sharing car rental platform itself does not own the vehicle, mainly the idle source of the agglomeration society, so the car source expansion, outlet layout, car rental price and the convenience of renting a car Sexuality has great advantages. Therefore, the mainstream view in the industry believes that the booming car rental platform including the car rental in 2014 will have a subversive impact on the traditional chain car rental brands such as China Car Rental.
However, I personally think that this situation will not happen for at least a long period of time. The main reason is that the Chinese car rental market is large enough and scattered, the brand concentration is still very low, and the space for deep excavation is very large.
According to data from Roland Berg, a well-known data research company, China’s car rental market reached 38 billion yuan in 2014 and will continue to grow at a rate of 27% in the future. However, such a big market is still in the stage of extensive development, the market is too scattered, and brand concentration is very low. Although the scale of the car rental and market share of Shenzhou Car Rental is greater than the sum of the second to the twelfth, it only accounts for 30% of the domestic car rental market. The larger market is occupied by more than 60,000 small and medium-sized car rental companies scattered across the country. .
Therefore, whether it is a car sharing car rental platform such as Baojia Renting a car, or a car rental in China, the next step is to standardize the service flow, unified price system and huge brand advantage to jointly increase their respective market shares, thus achieving standard car rental. Behavior to improve the satisfaction of the entire rental car industry.
In addition, in the car sharing car rental mode, tenants do not have to spend an hour or two to go to the traditional car rental store to apply for car rental procedures. All the procedures for finding a car, renting a car, picking up a car, and returning a car can be done directly online, saving time. It is labor-saving, and because the rent is an idle social vehicle source, the price will be 30~50% cheaper than the market price.
Because of this convenience and economy, the car sharing car rental has obvious advantages in meeting some people's immediate needs in the future. It is more suitable for shopping near home, picking up children and using two to three hours of community use and short trips for local business trips or excursions. use.
In contrast, the traditional leasing giant is more suitable for inter-city long-distance travel and travel because of the advantages of being able to return to the car in different places. Because in my opinion, China still has a different national situation from foreign developed countries. Although there are many super-large cities in China, the urban infrastructure is obviously insufficient. The traffic in the city is not developed, and travel is very inconvenient. If traditional car rental companies want to To meet the needs of the community, it is necessary to achieve high-density coverage in the city, which is obviously not their advantage, and it is precisely the advantage of the car sharing car rental platform. Therefore, the car sharing car rental between China and the car rental car will form a clear separation in the future, which is also proved in mature markets abroad.

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