After a lapse of five years, a new round of tragic price wars in the car rental market reopened this fall. 59 yuan Skoda Hao Rui, 55 yuan Buick Excelle, and even 39 yuan daily rental car, "cabbage price" the same daily rental price provoked a lot of car owners. Car rental companies are working hard to attack the city and mobilize their capital. The winds of the Internet have already started, and the cakes in the car rental market are in sight. Whether it is the traditional car rental giants that continue to burn money or the new P2P car rental platform, they are all thinking about the same issue. Who can finally get the recognition of the capital market? Who can make an early profit?
Both the boss and the second are listed. "The wind is close at hand, and the capital must catch up quickly."
After seven or eight years of staking, the car rental industry finally ushered in a climax in the fall, the wind is close at hand, and capital must quickly catch up.
On September 19, on the same day that Ali was listed on the NYSE, China’s car rental was listed in Hong Kong. The financing was about HK$4 billion, and the subscription was over 200 times. The popularity was not to lose to Ali.
For the Shenzhou rental car, which is called “the first stock in China's car rental industry”, this is not the first time to submit an IPO application. As early as 2012, Shenzhou Car Rental submitted a listing application to Nasdaq, but this model of heavy asset expansion was not recognized by investors. China’s car rental report shows that its asset-liability ratio was 95.81% when it was converted to Nasdaq in 2012, and it lost 151 million yuan in 2011. From 2012 to 2013, its net loss was about 132 million yuan and 223 million respectively. yuan.
Although it went to the United States to go public, the major shareholder Legend Holdings has been translating blood in time for the car rental in China, which is in the critical period of car rental expansion. Legend Holdings first introduced Huaping Investment. In July 2012, Huaping invested 200 million US dollars to rent a car in China. In April 2013, global car rental giant Hertz strategically invested in Shenzhou to rent a car, and obtained nearly 20% of the shares of China Car Rental and a board seat.
The injection of large-scale capital has allowed the scale advantage of the car rental in China to be laid. The Shenzhou Car Rental Prospectus shows that as of June 30, 2014, China Car Rental has 52,498 vehicles, 717 direct-operated stores in 70 major cities across the country, and 202 franchise services in 162 smaller cities. The outlets have a net book value of about 4 billion yuan.
At the time when the car rental in China was on the list, the old rivals officially submitted an IPO application to the US Securities and Exchange Commission on October 3, and planned to go public on the NYSE, raising $200 million.
A car rental is a loss-making listing. According to its prospectus, from 2012 to the first half of 2014, the revenue of a car rental was 450 million yuan, 566 million yuan, and 384 million yuan, respectively, and the corresponding net profit after tax was a loss, with a loss of 176 million yuan. , 152 million yuan and 20.7 million yuan.
Although the financial data is still losing money, the US capital market still shows a strong interest in it. “China’s current driver license is far more than the license plate increase. According to the data, as of the end of 2013, the number of Chinese driver’s license holders was about 210 million, but the number of passenger cars was only 84 million. This gap is an opportunity for the car rental industry.” US stock investors who did not want to be named said to the Beijing Morning Post reporter.
Both tradition and new factions have joined the melee. "In this period, market share is more important than anything else."
Burning money has always been an unavoidable topic in the car rental industry. Car rental companies have only a huge investment to maintain the scale of their vehicles. Just after the National Day holiday, the price war in the car rental market has quietly started.
On October 9th, the well-received Shenzhou Car Rental announced that it will launch a large-scale price reduction promotion nationwide to further expand its market share. The price cut covers all models of the national car rental network in China, and is unlimited and unlimited. Beijing Morning News reporter found in the car rental official website of China, the models participating in the 59 yuan price reduction promotion include new Santana, Skoda Hao Rui, Kia K2, Honda Fit, Buick Excelle and other hot-rent models.
In the face of the strong offensive of car rental in China, a car rental quickly responded by launching a new round of price reduction promotion on the evening of October 10, launching an ultra-low-cost car rental with a minimum price of 55 yuan.
In addition to the traditional car rental giants, the new shared P2P car rental platform has also joined the scuffle.
During the “Eleventh” period, AA Car Rental will launch a 65-yuan “tour” fee to provide new coupons for new and old users. On October 11, friends rent a car to play special experience activities, and more than a dozen models are rented. The minimum is 39 yuan, and no matter six days; on October 20th, Baojia Renting Car announced that it will give a new registered user a one-off 200 yuan cash red envelope without any use restriction. "If you choose a model with a daily rent of less than 200 yuan, it means The user’s rent for the first day is zero.” Li Rubin, founder and CEO of Baojia Renting Car, told the Beijing Morning Post that in order to prepare for this round of activities, Bao’s car rental has already prepared for the tens of millions of subsidies.
"China's car rental market is still in its infancy, and during this period, market share is more important than anything else!" said Lu Zhengyao, chairman and CEO of China Car Rental Board.
Wu Sangmao, an analyst at Aimei Asset Management Co., Ltd., said in an interview with the media that the car rental industry has heavy capital and heavy scale. Only when the scale of the fleet expands, the revenue is guaranteed, and the expansion of the scale, the number of stores, can increase the market pricing power, and the pricing power determines the profitability of the enterprise.
The result of burning money cannot be predicted. "Some can burn a future, some can't."
In fact, in the car rental industry for nearly a decade of industry sleep, the once ambitious peers have already left.
As early as 2009 and 2010, a large-scale price war was launched between China and China. At that time, the two sides each received huge financing and had a strong demand to seize market share. After several rounds of fierce price wars, the domestic car rental market is only one mile and two large chain car rental companies in China. The Supreme Car Rental has withdrawn from the personal self-driving market, and the harmonious car rental has closed. Rica and the car express are all in a good position. .
In just two and a half months, the two major car rental brands have staged high-profile in the capital market. Behind the coincidence, the current situation of the domestic car rental market is relatively competitive.
According to Roland Berger's report, China's short-term rental self-driving business will grow at an average annual growth rate of 27% in the next five years. By 2018, the Chinese market will reach 18.3 billion yuan. As of the end of 2013, China Car Rental has the largest fleet of all car rental companies in China. Its fleet size is larger than the total size of the last nine car rental companies, which is more than four times that of the industry's second largest car rental company.
Although not explicitly stated, the above-mentioned "second largest car rental company" refers to a car rental. According to a prospectus, the revenue of the second quarter of 2014 was 200 million yuan, up 9% from the previous quarter and 52% from the same period of last year. The revenue of the first half of the rental car was 383 million yuan. As of the first half of 2014, the fleet size was 15,000.
Tiger Financial Analysis article shows that from the business model, renting a car is undoubtedly the largest source of income for car rental companies. Taking China's car rental as an example, car rental revenue accounted for 85.6% of the first quarter of 2014 revenue. Although the proportion of used car sales has slowly risen in the past few years, by the first quarter of 2014, the share was only 14.4%. Used car sales is a good way for car rental companies to get rid of the “heavy assets” model of being criticized. However, it takes time to realize the realization of assets.
When Shenzhou rented a car to the US in 2012, its large number of vehicles purchased in 2010 and 2011 had not expired for 30 months, so in 2011, only 742 vehicles were sold. In the eyes of investors, this figure cannot provide enough credibility for its future growth.
“Today, there is such a problem with a car rental.” Industry analysts say that the price war for short-term tenants is inevitable in the short term. “Burning money is the norm in the industry, but the result of burning money and burning money is different. Some companies can 'burn a future', and some can't.”