(Yicai Global) Aug. 23 -- Didi Chuxing, the largest Internet-based taxi hailing service provider in China, began consumer trials in Shanghai on Aug. 7, prior to the launch of its car rental business.
After its Shanghai debut, Didi's rental service will be later rolled out to many first and second-tier cities. The main selling point of Didi's car leasing business is a free door-to-door service, with cars delivered to user's homes, upon request. Didi customers can now book cars, make payments and modify orders online.
As Didi does not own any vehicles itself, their car rental service is offered in partnership with other companies. Didi is in negotiations with several other car rental firms, including eHi Car Services [NYSE:EHIC], a leading car services provider in China. This will help them cut operational, sourcing and management costs.
China's car rental market reached CNY54.4 billion in 2016. With the average annual growth rate projected to be 21.07 percent during 2016-2020, its volume will grow to CNY116.8 billion by 2020, according to a CI Consulting report.