In a survey conducted by Tencent, 17% respondents said it’s convenient for their daily transport with taxi service mobile apps while 45% had no idea about what such mobile app is. Since 26% respondents thought it still needs to improve and many Chinese mobile users are not aware of taxi service mobile app, there is much potential for its development in China.
According to Tencent’s latest survey about business-car renting, 16% respondents considered it cheap to have such service while over half of them never used business-car renting. DiDi Taxi and Kuaidi Taxi are popular taxi apps in China, now they are making efforts on business-car renting.
Uber has been introduced into Shanghai in 2013 and now it provides car service in Shanghai, Beijing, Guangzhou and Shenzhen. AAyongche, another car service providers, will expand its car renting service to 20 cities till end of year 2014.
There are 3 sources of profit for these car service providers: commission, value added service, logistics profit.
However, there are still much concern for development of business-car renting service in China:
- Since the business-car renting cost consumers a lot, much more than taxi fare, there will be not so many renters at the beginning
- There are many restrictions for business-car renting in certain cities in China
- Business-car renting service providers should cooperate with reliable insurance companies.
- GPS system is indispensable for tracing rented cars.
- Be careful with competitors in business-car renting market since competition will be fierce.
Also read: Kuaidi Taxi APP Released Its Q1 Financial Performance