(Yicai Global) March 13 -- The spring season of time-share leasing of new energy vehicles has passed, with players already announcing closures driven by capital pressure.
Also called 'shared cars,' time-share car leasing features smart phone ordering, pay-as-you-go driving, and time-share payments.
Uucars.com officially announced it is closing on March 10, citing "investment signed before was not paid in" as the direct cause.
Beijing UU Lianchuang Information Technology Co. is the firm behind Uucars.com. It once secured two rounds of financing worth a total of more than USD20 million, Beijing Business Daily reported. The company registered main business income of CNY2.404 million, a net loss of CNY14.142 million, and total liabilities of CNY21.737 million in 2015.
Many pressure factors underlie the closedown, but the strain from capital and new energy vehicle licenses is the biggest, an unidentified executive of Uucars.com recently told Beijing Business Daily.
Time-share leasing of new energy vehicles relies heavily on operating efficiency. Greater efficiency means higher profit. One way to raise efficiency is to invest in more vehicles, which entails more costs. Therefore, vehicle purchase and license plate resources are key to efficient platform operations. Small players have found it hard to keep going due to high maintenance costs, parking fees and early vehicle input.
As the time-share lease' model for new energy vehicles is still immature, capital markets have adopted a wary wait-and-see attitude towards its development, Sun said.