CAR Inc. declares war against Uber in China

CAR Inc. Monday uploaded an announcement on HKEx that it has recently commenced a collaboration with UCAR Inc. to launch a chauffeured car service under the co-branded name “UCAR Shenzhou Private Car”. Customers from 58 major cities in China were using Shenzhou Private Car service which implies that the Company has officially entered the chauffeured car service market through the collaboration with UCAR.

UCAR is an independent third party, the announcement reads. Under the Collaboration, CAR will provide cars to UCAR under both long-term and short-term rental terms at the prevailing market rates to develop the private hire car business. In addition, the Company will have a right of first refusal in UCAR’s future equity financings. The Company believes that the Collaboration will further enhance its brand recognition and customer retention, create cross selling opportunities, improve its fleet management efficiency, and help secure future strategic opportunities. The Collaboration is in line with the Company’s growth strategies, including continuing product innovation and further expansion along the value chain.

Market experts point out that the move of CAR Inc. entering the private hire car market through the collaboration with UCAR helps achieve three key goals. First, from the legal point of view, CAR Inc. will be able to be excluded from the regulation of“Car rental service providers are not allowed to participate in public transport” given that the Company will only be providing vehicles. Second, from the operation point of view, the private hire car business will be independent from CAR Inc., which will help CAR as a listed company to avoid any losses related to early development costs. Third, from the customer point of view, CAR’s strong reputation will help Shenzhou Private Car quickly increase its brand awareness and reputation and attract more customers

On 8 January 2015, the Ministry of Transport of the People’s Republic of China issued an official announcement to define private hire car, encourage the development of private hire car business and strictly prohibit private vehicles to become private hire cars. According to the announcement, private hire car business integrates with the internet and a third party service provider to provide chauffeured car service according to the passengers’ instruction creates a new era of car rental business. This partnership marks a breakthrough in traditional car rental business and is in line with the Ministry of Transport’s announcement in January 2015 which supports innovative business models that meet the demand for high quality, diversified and highly-differentiated transportation.

It is believed that Shenzhou Private Car is consistent to the guidance of the announcement of the Ministry of Transport of the People’s Republic of China, and will lead the direction of the future development of the private hire car business. As the largest online car rental service provider in China with a fleet size of nearly 60,000 vehicles, along with a highly recognized brand, large client base and strong track record of successful execution, CAR Inc. is set to revolutionize the private hire car market.

《CAR Inc. declares war against Uber in China》永久阅读地址: http://91kudian.com/yingyu/19366/