A little car rental: How big is the self-serving "point car" market?


Following the Shanghai Traffic Commission's seizure of 12 illegally-operated DDT cars, Beijing announced on January 6 that it had scrutinized "black vehicles illegally operated through the use of Internet platforms and mobile phone software," and there have been follow-up taxi strikes in multiple cities. The discussion on whether or not the car service platform is compliant is very important. The P2P mode of time-sharing car rental service has been pushed to the cusp. Whether or not it has “legitimate operation” qualification is the core content of this supervision.

At present, there are four main types of time-shared car rental services in China: The first type is the P2P non-self-driving platform represented by Dripping and Fast, which covers both taxis with legal operating qualifications and the aforementioned “Black car”; the second type is the P2P non-self-driving platform represented by everyday car and ha ha carpool, and the vehicles are from private cars; the third type is the P2P self-driving service platform represented by PP car rental and Youyou car rental; the vehicles are from private cars; The four types of O2O time-sharing self-service car rental platforms represented by one-time car rental and car enjoyment come from rental companies and manufacturers. The first two types of renters do not need to have driving qualifications, and the latter two types of renters must have driving qualifications.

A little car rental process: self-help, self-driving, returning the car in situ, hourly rent

If the “legitimate operation” is strictly used to draw a red line, only the fourth category will not be affected by this supervision. A little car rental belongs to the fourth platform, which is a time-sharing car rental platform. It charges by the hour, has no stores, and the vehicles are arranged in every corner of the city. Currently, there are 570 car rental points in 10 cities. The user can self-service the car and return the car at the car rental point and self-service according to the standardization process.

The process of using a car to rent a car is as follows: After installing a car rental app, the user can onlinely certify the driver's license and other information, search for nearby vehicles through the app, and book any time according to the time of using the car. After paying the reservation, the user can go to the parking spot of the car. When the app clicks on the button to retrieve the car, the car door is automatically unlocked, the car's key is placed in the car, the car is parked and the car is parked in the same place, and the app or credit card is locked to complete the return procedure.

The standardization process of self-service car rental by users reduces the staff cost of renting a car, and does not depend on stores and customer service. At present, there are more than 50 people who rent car headquarters in Beijing, plus a total of less than 90 people in other cities. The team is divided into the core layer and the executive layer. At the core layer, many technical teams come from Huawei and its operating members come from Baidu, as well as easy-to-reach management personnel.

In August last year, at that time, the amount of car rental business covered 5 cities across the country, with more than 20,000 users, and it received Series A financing of millions of yuan of Renminbi shares. The current rental car business covers 10 cities and the number of users has expanded to 500,000. At the same time, it is approaching a new round of financing.

How much is the price? How to profit?

The car rental founder and CEO Liu Wenjie once compared a bit of car rental to a community convenience store to provide standardization and a small number of services. In fact, the profit model of one car rental is more like that of a secondary distributor. The vehicle is from a car rental company. The parking lot is a public resource and the right to use the car is sold on an hourly basis to earn the difference.

In the process of use, the user needs to pay the hourly rental according to the length of time the car is used and pay mileage mileage according to the driving distance. There is a difference between the models and car rental prices announced by the car rental website in cities. For example, the Beijing model is mainly based on Santana (7L2) and Jetta, with a rental of 15.9 yuan/hour, mileage mileage of 1.2 yuan/km, and Shijiazhuang models The Mark 207 and Buick Excelle are the mainstays, with a rent of 12.7 yuan per hour and mileage mileage of 1.2 yuan per kilometer.

The daily rental price of the Jetta Car Rental Jetta (24 hours) is 209 yuan, with an average of 8.7 yuan per hour. Although Liu Wenjie did not disclose which car rental car the car rental company is from, how can the bargaining power, but you can refer to the data to roughly estimate the room for profit.

For what people? How to promote?

The key to the operation of a rental car is how to reduce the idleness of rented vehicles. The first is to expand the market and increase the number of users. The second is how to choose parking addresses so that users can get car rental more effectively.

A little car rental market strategy to expand new users, as with other entrepreneurial teams, there is no significant advantage, mainly rely on word of mouth + sharing, friends circle game marketing. Once in the circle of friends to promote the car's game, the day received 100,000 people's participation. However, the conversion rate of this promotion method is not high, and there is a lack of persistence. At the same time, it is difficult to establish the brand trust of users.

In addition to expanding the market, the focus of user operations is to improve the retention rate of the old users. At present, the retention rate of customers is about 50%.

Liu Wenjie said: "A little car rental is willing to do a certain market segment, this segment of the crowd has been very clear." That has the ability to drive, with short-haul travel habits of fixed users.

Product value - "anytime", "anywhere", how to ensure delivery?

As the "two traffickers" of the car rental market, the value of a car rental is actually to provide users with more flexible choices, from time to place. But the reason why other car rental companies are not flexible is because it is not easy to manage. How can a car rental be provided to the car at any time and everywhere?

Liu Wenjie said that to achieve "anytime", a little rental car must abandon the traditional lease mode of pursuing high customer price, and accept low-cost unit price, multi-user, multi-frequency mode. Because the high passenger unit price may make one-point rental car excessively dependent on a small number of users, lose accurate users who have been clearly portrayed, and be forced to compete with traditional car rental giants such as Shenzhou and Yili. This is not wise for a car rental service with limited operating resources.

Whereas "wherever" is related to site selection, compared to the team structure of traditional Internet companies, a little rental car has more ground-level operation teams and undertakes very important site selection and ground-sucking work. Several people in each city are scattered in 10 cities, and the personnel turnover is faster. The team selected the site through data analysis and sensory judgment. According to Liu Wenjie, the failure rate of the site selection was only 10%.

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