Car burning money when Hugh grant: subsidies double-edged sword who is a waste of resources
Fast taxi on Thursday raised US $ 600 million, Li min, Deputy Chief said the financing will be used primarily for the development of the new car business. The flip side, fastest competitor drops a taxi announced one month ago raise 700 million dollars.
After you harvest the taxi market, drops faster and easier main battleground moved to liquidate the Internet car market. Taxi software just as they did during the melee, cash subsidies as a major promotion. If nothing else, fodder enough drops fast will prompt another round of expensive wars in the car market.
Car markets and taxi markets are not the same
Subsidies for large areas and long time, taxi drivers, taxis to install and use the software encourages passengers, has been proved to be the fastest drops a simple and crude but effective way of promoting. This success story has been transplanted into the car market.
But both markets are very different, and this difference may lead to special software application has encountered a problem.
Taxi drivers will pull taxi software as a complement to live, pull out Street in the rush of passengers, taxi software can be put aside. But car drivers, in particular full time shuttle driver, was particularly rely on special software, because there is no Dome light, they almost all of the tourists came from special software. Which is why the limousine service providers can participate in from the start into an important reason.
Under the stimulus of subsidies, car compare taxi has obvious advantages, as many drivers and even some taxi drivers of new destination. Which brings the question is, with the car on the road more and more, limousine driver response to speed faster and faster, tourists will become a scarce commodity. Many passengers had called a taxi, was stimulated by the subsidies before attempting to use the limousine service, once the subsidies stopped and the number of passengers using limousine services there would be no small declines.
How to find a source for sharp growth in the number of car drivers, is a limousine service providers need to take into account issues. This breakthrough of taxi market that year did not affect the overall result, but in the car market will be enlarged.
Because this is a core issue. Car market forward, limousine service provider wants to profit and must rely on a large group of large quantities and stable source. In any market, prices are what determine the target number of users, one of the most important criteria. Car prices, regardless of the case of subsidies is about 2-3 times the taxi, car users, most of them are taxi users. Either subsidies or lower prices enough to compete with taxis, this is the dilemma facing the pool bus service.
Not enough passengers, car drivers in unsaturated, is likely to switch to other trades. The current number of special trains on the Beijing market has so much that taxi drivers nervous. Therefore, tourists this problem in a more competitive market environment will soon appear. Want to scale to defeat your opponent, you must reserve enough resources, financing, vehicle and driver is the core resource of car market. First-tier cities in China, brought too many limousine service provider. Car and driver, the foreseeable will one day soon become unsalable goods, but tourists will be relatively stable and may even decline. So, either by copying the cab marketing experience, may not be very effective.
Car companies established car rental companies is a waste of resources to buy a car?
Difference with taxi software originator Uber is, domestic car companies began to build rental company’s direction. Uber traffic sources in a foreign country can be divided into two categories, a rental-car company, is also the personal cars. Uber worldwide explosive growth mainly due to the integration of the unused vehicle resources and efficiently distributed to passengers. So in a foreign country, Uber facing regulatory pressure is not smaller than the drops are the fastest in China.
Although the Department of transportation already gave the green light for limousine services, but on special trains, especially limousine private regulation did not relax. Limousine service provider in order to bypass the grey areas in the country, began to build the rental company offers limousine services. Easy-to-use vehicle recently announced it will spend 8 billion yuan to set up car rental companies, in response to the issue of the car. Established car rental company also plans to use its vehicles into China auto rental car market.
Quantitative point of view, certainly much larger than the car rental companies all private cars, but also far more flexibility than the latter. Sharing economy to global and highly distributed resources, directly related to the extremely low cost of the services provided. In the limousine this was proven by Uber marketing, Chinese car companies are using their own vehicles to participate in the competition, the money is worth burning is controversial. Idle its car rental companies as well as private cars on the market, should become the vehicle’s main force, this is the reasonable distribution of social resources, rather than to rebuild a car rental company, which is a waste of resources. Regardless of whether the regulation, cars idle resources car future. Believe one day join limousine cars will get regulatory approval, assuming, of course, pay a certain amount of supervision fees. Limousine service provider owned vehicles will be of little value.
Limousine service provider established car rental companies, is in fact a new taxi company, once the market reaching saturation, driver will face pressure of contracting vehicle, so much that the stigma of nouns is likely to return to the car company. This flourishing car market at present is a disaster.
Tourists are able to stabilize, and that the fleet is worth having, is the next round of car burning money war core question, I hope China travel service travel market can become an effective complement, rather than mess, caused a lot of unnecessary waste of resources.