Uber valuation 40 billion, China's car rental market bright future?

Beijing time November 26 Morning News, Bloomberg reported that the U.S. car rental applications Uber will be 35 billion to 40 billion U.S. dollars in the valuation of a new round of financing, financing at least 1 billion U.S. dollars.

The message is called T. Rowe Price group may become the new shareholder of Uber, and the existing shareholder Fidelity Investment may also participate in this round of financing. In June this year, Uber's valuation was 17 billion dollars. Today, 35 billion to 40 billion of valuations are about 1.5 times times the market value of companies such as Twitter and Kraft Foods. The degree of capital bullish is insane.

Speaking of Uber, we think of China's easy to use car, the Chinese version of the Uber in the C round of financing also melted to 100 million U.S. dollars, and we are familiar with the quick taxi also launched a car service, the same sword refers to the commercial rental market. Does the market really have a bright future?

The car rental market with Chinese characteristics

Commercial car rental itself is not a new business, as long as the internet before the advent of the car rental companies exist for a long time, but Uber opened the private car and car rental access. Uber using the popularity of smartphones and GPS positioning in recent years, providing a platform to both sides, owners can earn income, users can rent the car they want, and Uber from the Commission, is happy. Uber once made 10.7 million dollars a day, no wonder the capital gave it an overvalued value.

Easy to use the car and the quick one to copy the Uber model, but in China has encountered regulatory troubles. In China, a private person who engages in a charging behavior is considered to be operating. If there is no corresponding operation procedures, it is considered illegal operation, is an offence. is also the transport Department to focus on the black taxis. So Uber into China after abandoning the private car operation mode, and the car rental companies to cooperate.

The easy to use car is a reflection of the Chinese people's cleverness, it first set up a linked car rental companies, and then together with car rental companies to pull in private cars. First let the owner of the private car linked to the rental company, and then the owner by way of application to the car rental company as a driver, to resolve the private car can not participate in the taxi operation of the law, and finally by the car rental company and easy to cooperate.

However, this way was soon to be concerned about the department, in August, the relevant departments issued the "Beijing Transport Committee Transport Administration on the prohibition of Car rental enterprises for illegal operation to provide convenient notice", the requirements of leasing companies must have car property rights, the target is easy to use cars, private car detour mode end.

Ii. The essence of Chinese characteristics

Some people think that the government issued the "notice" is to standardize market behavior. In fact, behind the naked interests of the dispute. Uber in the United States, but the problem is even worse in China.

The right to operate a Chinese taxi is a monopolistic auction. Government monopoly of the operation of taxis, high-priced auction, rental companies to obtain the right to operate after the recruitment of drivers, charging high fees. Eventually these costs are passed on to consumers and become part of the price of taxis.

In addition to strengthening management and protecting passenger safety, the crackdown on black taxis. An important aim is to limit the competition between taxis and cabs that do not pay high management fees, and to maintain monopolistic interests in operating rights.

In this way, Peer-to-peer car rental cars and rental companies can replace taxis. If this way becomes mainstream, the taxi operation power loses the value, the related department also cannot obtain the benefit, this is the Chinese characteristic car rental real question. The question of how to solve the conflict of interest is how China's car-renting app can develop like Uber.

Iii. the revelation of Taobao

In fact, the problem of renting a car app is a bit like Taobao. When Taobao Rose, there was a controversy over tax evasion. Later, when Taobao big, there are some local tax authorities forced Taobao shop levy a business tax. But relying on strong public opinion and a deep background, Alibaba has been sticking to the present. Now the U.S. listing, the halo of business heroes to make Taobao more secure.

When the old interests are violated, there must be a new vested interest, a new model can be born and developed, in fact, the result of conflict of interest. Or the new interest groups defeat the old interest groups, gain the right to speak, give way to the government's policies, or the new and old interest groups to complete the exchange of benefits and compromise, to share new interests. The future of the car rental app will have to go this way in China.

Don't ignore the quick taxi

Although Uber is an international enterprise, although easy to use the car started earlier, but in the car rental market is the most likely to be a quick taxi.

Use the car software need map, pay the industry chain, this aspect Ali most mature. In the biggest obstacle to the government, Ali also has a strong PR strength, Taobao is proof. If everyone has passed the policy, spell the strength of the funds, Ali also has the biggest advantage, who can be more than Ma Yun Rich?

Therefore, the future of the car rental app in China is bright, depends on the new and old interest groups between the struggle and compromise, from Taobao example, the new model is likely to eventually win. In China's car rental app market, quick Taxi is likely to come from behind, more than Uber and easy to use the car.