Yongche invests US$1.3 billion in rental offshoot
Yongche will launch a car rental operation called Yongche Rental with RMB8 billion.
ChinaTravelNews – Yongche will launch a car rental operation called Yongche Rental with RMB8 billion (approx: US$1.3 billion). It aims to open up channels between online platforms with light assets and car rental companies with heavy assets, and establish an innovative model encompassing driver service, car rental and hire car service to provide users with a safe, high-quality and individualized experience.
The move crystallizes the goal of a strategic partnership between Yongche and Haier Financial Services formed in September 2014, to setup an online transportation resources platform using financial services to promote the development of chauffeur service.
The Ministry of Transportation has decreed that chauffeur service has a positive role in satisfying the needs for quality, diversified and differentiated transportation. As chauffeur service apps must comply with transportation rules and exclude private cars in the service, Yongche has found an apparent solution and after three months of planning is ready to launch the new chauffeur operation model.(Translation by David)