Car Rental Market Burning Race Intensifies Business Car Rental Supervision Policy is Promising

Burning competition in the car rental market intensified

Baidu pulls Uber against Tencent Ali

It is expected that Baidu will announce a strategic investment in Uber (Uber), a global taxi application, with an investment amount of up to US$600 million. This means that Uber, which officially landed on the Chinese market in February this year, is expected to further expand its penetration in the Chinese market through cooperation with Baidu, which has the strength to compete with major competitors Alibaba (Fast) and Tencent (Didi) in the car rental market. "Three Kingdoms War."

Car rental market continues to burn a lot

Daqi snatches the mobile payment market

The previous week, Didi had just announced that it had invested 700 million U.S. dollars, and Tencent continued to participate in the investment in betting. The reporter learned that the fast taxi will also complete a new round of financing recently. It is expected that the scale will not be small, and Alibaba will participate in it.

In the taxi subsidy war at the beginning of this year, drab taxis and fast taxis burned about 2 billion yuan. However, the fight between Tencent and Ali’s taxi is actually a battle for both to compete for the mobile payment market. Currently, WeChat Payment and Alipay have gathered over 100 million mobile payment users. Baidu’s Baidu wallet, a mobile payment brand, is slightly behind.

Uber, the U.S. taxi giant, raised US$1.2 billion in a new round of global financing. The company’s valuation has reached 41 billion U.S. dollars. This time, Baidu announced its strategic investment in Uber, intending to snatch the mobile payment market and even behind the Internet financial users.

At present, Didi has begun to lay out the commercial car rental market, set up a "U-pick car," and Tencent has also invested 3 billion yuan in car rental business. Analyst Analyst Zhu Zhengji believes that the commercial car rental market has developed rapidly, and the country has started official car reforms to encourage social resources to participate in the supply of official vehicles, which is also good for commercial car rentals.

   Disputes on the legality of commercial car rental

The controversy caused by Uber's expansion on a global scale has continued and even in some countries it has been banned. A taxi driver said that Uber's problems in the global market are also likely to occur in China. Chinese law explicitly prohibits non-operating vehicles, that is, private cars, from engaging in car rental business. This is a major part of Uber's business. Uber expands the market by using the "grey zone" defined by the law between "carpooling" and "black car" in China. It will inevitably lead to serious legal disputes.

Zhu Zhengyu said that the legality of commercial rental cars is controversial. Local governments have considered public vehicles that do not have a taxi operating license to be considered as black cars. At present, they have a deterrent attitude. However, at the national level, the reform of official vehicles is currently under way to encourage social resources. Participate in official vehicles, so the future attitude of the government for commercial car rental is expected to gradually be tolerant of the adoption of the reform policy.

A person from Tencent commented that taxi drivers have a lot of travel information and it is still a question whether these sensitive information can be held by foreign investors. In addition, Uber currently has less than 10 cities in China, and its development has a long way to go.

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