Chinese ride-sharing giant Didi Chuxing announced on August 23 that it has launched its own online car rental business in cooperation with existing leasing companies to offer to-door delivery.
The move is in line with Didi’s asset-free strategy in that it works with local partners or registered drivers to provide transport services, thus freeing up the company from having to own its own fleet of vehicles.
In 2015, 2.34 billion of China’s 4 billion domestic tourist trips, or 58.5% of the total, were completed in rental cars. The number is expected to surpass 5.8 billion by 2020, according to estimates by the China Tourism Automobile and Cruise Association (CTACA).
The value of China’s short-term car rental market will grow from RMB 6 billion in 2013 to RMB 18 billion in 2018, at a compound annual growth rate (CAGR) of 27%, according to Roland Berger Strategy Consultants.
Didi Car Rental said that it is in discussions with major Chinese car rental firms, including eHi Car Services, on potential collaboration in sharing vehicles and other operational resources.
The company was selected on the Fortune list of "2016 Change the World" as the only Chinese mainland company on the list.
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