The Chinese market will exceed 100 billion yuan next year

Compared with the three car rental companies in the head, they have formed a certain city coverage and vehicle scale. It is understood that at present, China Car rental covers more than 300 cities, the fleet size of more than 150,000 vehicles. The linkage cloud covers more than 360 cities with a fleet size of 100,000 vehicles, while the linkage Cloud will also purchase 35,000 vehicles to expand the fleet. Ehi Car Rental covers 450 cities with a fleet size of 70,000 vehicles.

Founded in 2007, China Car Rental was listed on the Hong Kong stock exchange in 2014 and was privatized in 2021. Ehi Car Rental was founded in 2006 and listed on the New York Stock Exchange in 2014. However, since the listing, the company's market value has been undervalued by the US stock market for a long time, and Ehi Car Rental has also announced plans to land on the Hong Kong Stock Exchange.

Different from China Car Rental and Ehi Car Rental, which have been established for more than ten years and have had capital market experience, Linkage Cloud, which also occupies the first echelon position in the car rental market, was established only five years ago.

"When the traditional car rental platform has a certain brand and scale, as a later entrant in the industry, if you still imitate and follow, there is no way out!" Che Xinli, president of Linkage Cloud, said, "The market environment at that time decided that we must go out of our own way."

From the perspective of the global market, the car rental industry is characterized by "heavy assets, light profits", the traditional business model does not have much imagination, and the sharing of cars that were booming at that time let the linkage cloud see the opportunity. This will make the consumption frequency greatly increased, and through this high-frequency consumption entrance can be extended to the entire automobile ecological chain, extending a variety of business forms closely related to automobiles. According to this, Che Xinli put forward the strategic concept of "car rental first, ecological encirclement".

In this Analysys data report, it also restores the development path of linkage cloud for more than 4 years: When linkage cloud was established in 2016, it chose to build its own science and technology team; In 2017, we explored a new model of car rental and laid out the after-car service market. In 2018, it entered 100 cities and launched auto financial products. So far, Linkage Cloud has been stationed in more than 360 cities and innovated local life services.

At the same time, it is worth noting that in terms of urban expansion strategy, linkage Cloud made the development strategy of entering the sinking market first in 2016. Car Xinli previously told the 21st Century Business News that the user demand in second-tier to fifth-tier cities is actually very large, due to the density characteristics of the network, in fact, the sinking market of car orders, daily orders of bicycles and other consumption toughness.

After accumulating experience and user base in the sinking market, linkage Cloud began to enter first-tier cities such as Guangzhou and Shenzhen in 2018. From the sinking market to the first-tier cities, the linkage cloud has also been upgraded to a certain extent.

It is understood that the travel market of second-tier to fifth-tier cities is easy to reach saturation, but in first-tier cities such as Guangzhou, Shenzhen, Shanghai and Beijing, travel demand is greater, and entry costs will be higher. In the absence of a license plate reserve, the linkage cloud entered the market with the help of social vehicles. In addition to self-operated vehicles, Linkage Cloud has opened a third-party vehicle access mode, and private owners and enterprises with vehicles in Beijing and Shanghai can access the linkage cloud car rental platform to revitalize idle travel resources.

Car rental market in the future four major development trends to focus on

At the end of the analysis report, Analysys also forecasts the development trend of China's car rental market.

First of all, minimalist, personalized needs to activate the car rental market more long tail products to promote market growth. At present, the post-60 group has gradually entered the state of retirement, as consumers with money and leisure, many post-60 choose to rent RV travel to start retirement life. Rv and SUVs have become popular choices for elderly people to rent cars, while young users prefer sports cars, luxury models, SUVs and other models. At the same time, for business users and daily car rental users, their needs have a short, minimalist characteristics.

Second, in-line services and post-line services will gradually expand to help enterprises tap more value from users. For car rental platforms, revenue will not only come from vehicle rental, in-line and post-line services also contribute more revenue sources. For example, when users rent a car on a road trip, based on car networking and big data, accurate destination activities can be recommended for users. At the same time, advertising/service recommendation can be carried out in the body, inside the car and APP, and relevant businesses can achieve cross-border diversion, resulting in actual economic benefits.