Gov't restrictions are helping to boost the expansion of market
A new player in China's car time sharing business is taking the sector toward a deposit-free mode for the first time.
LeShare, LeEco Holding's time sharing arm, put its app and service into public use on Friday in Beijing, after months of testing, with a fleet of 300 full electric vehicles.
Users need only register with a mobile number through the smartphone app or WeChat account, and upload their driver license information. They will then be able to find the nearest available vehicle from 60 parking sites scattered throughout the capital city.
"Our cars are in use for about 10 hours a day, topping the Chinese market," said Cui Ruizhe, head of product management of LeShare.
Car time sharing operators usually require a cash deposit of about 1,000 yuan ($152.8) or more. Time sharing customers are charged on a time or kilometer basis, bypassing the upfront costs of a car. Users drive the vehicles then return them to any of the parking sites.
The company takes care of vehicle maintenance, insurance and other auxiliary costs. The users and business staff never need to meet in person.
Cui said:"Besides our lower rental fees, each customer gets 30 minutes free use twice every day."
Liu Shijin, former vice-president of the Development Research Center of the State Council, said: "The sharing business, as a new commercial pattern, has higher economic efficiency. It may bring significant improvements to people's well-being and society development."
Duan Liren, former vice-director of the Beijing Municipal Transportation Administration Bureau, said transportation sharing could be a solution to existing traffic issues.
Eight Chinese cities including Beijing, Shanghai, Guangzhou and Shenzhen are restricting new vehicle plate registrations. The policy has triggered acceleration in the expansion of the car sharing market, as the business helps users avoid car plate issues.
A car-sharing branch under the Internet Ecosystem Institute was established on Thursday, led by LeEco Holdings-controlled Yidao Yongche, to research and advise on the fledgling business field.
Time sharing
LeShare plans to expand its fleet to 3,000 units by the end of this year, and provide the service in seven cities including Beijing. Shanghai, Chengdu, and Shenzhen. LeEco Holdings plans to invest 2 billion yuan by 2019, hoping to broaden its service area to 100 cities with 200,000 vehicles.
Shouqi Group's time sharing arm Gofun mainly operates across Beijing. BAIC Group and smartphone maker Taiwan Hon Hai Technology's joint venture GreenGo focuses on shopping areas and industrial parks.
