Didi Chuxing, China’s largest ride share company, says it has launched its own online auto rental business through an asset-light model in cooperation with existing leasing companies, says a company announcement.
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Didi Chuxing, China’s largest car-on-demand service provider, officially launched an online auto rental service on Monday, in the latest effort to build itself into a one-stop mobile transportation platform.
The service called Didi Car Rental can be found within Didi Chuxing’s application.
It’s launching an online vehicle rental service in the country to capitalise on the billions of domestic tourist trips made throughout the country, which is expected to grow to 5.8bn by 2020.
Didi Chuxing’s auto rental service has been in beta testing since July. The number is expected to surpass 5.8 billion by 2020, according to estimates by the China Tourism Automobile and Cruise Association (CTACA).
With its recent takeover of Uber’s China operations, Fortune has ranked Didi 30th on its list of the world’s 50 top firms working to advance society and generate profit.
The value of China’s short-term auto rental market will grow from RMB6 billion in 2013 to RMB18 billion in 2018, at a compound annual growth rate (CAGR) of 27%, according to Roland Berger Strategy Consultants.
Unlike traditional auto leasing service, Didi users can book cars online and the cars will then arrive at their doorstep, it said.
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As the only Chinese mainland company on the annual list of the USA -based magazine, Didi Chuxing, estimated to be worth US$35 billion, ranked the 30th mainly because of its contribution to the environment. By this merge, investors in Uber China unit will own 20 percent of Didi; while Didi will invest US$1 billion in Uber.
