Daimler Group grabs car rental smart rental car pilot Chongqing

By the end of 2015, hundreds of smart cars wearing the “immediate” logo will appear at Chongqing’s airports, railway stations, universities and the city’s main streets.

Unlike traditional car rental, passengers only need to use the mobile phone APP to find nearby rentable vehicles, and use the smart card to unlock the car and rent it on a minute basis. After the car is used, instead of driving back to the designated point, it can be delivered to any legal parking spot in the city. You can use the bank card or Alipay to complete the payment.

This smart car rental business, which was initiated by Germany's Daimler Group in 2008, launched 12,000 vehicles in Europe and the United States. After 32 million times of time-sharing, it entered Asia for the first time and Chongqing was chosen as the first stop.

On January 8th, Tang Zongwei, deputy director of Chongqing Liangjiang New Area Management Committee, who successfully introduced the Mercedes-Benz manufacturer into Chongqing, said at a news conference that under the concept of reducing urban congestion and car sharing, Daimler Group’s smart car rental will be Chongqing's smart traffic construction contributes.

In an interview with a reporter from the 21st Century Business Herald, Guo Lu, head of Daimler's China region, said that compared to traditional car rental services, real-time car rental has two features: First, renting and returning cars is free. Users do not have to sign a binding contract or buy insurance in advance, and can rent the car at any parking spot in the city without staff intervention. The second is charging by the minute, instead of the daily or hourly fee of the traditional car rental industry. Instead of the user renting for a long time and removing the vehicle and refueling time, it takes only two hours or so.

He also stated that since it is still in the research stage, the rental price charged by the minute cannot be revealed temporarily, but it is closely related to the number of vehicles put by Daimler Group.

Using the technology software developed by the Group itself, passengers only need to pay for their fares once they have used the car, which already includes vehicle insurance, membership fees, and rental fees.

As for whether auto dealers will be exposed to such risks as huge amounts of arrears and illegal fines, Guo Sheng stated that although the auto leasing industry is “plainly injured”, the group will also adopt the auto sharing policy as the Chongqing municipal government supports it. Reward the risk by rewarding the premium members with the number of minutes and charging the malicious member a penalty for illegal parking as a deposit.

For the first time, the Daimler Group's smart car rental business has entered the Asia-Pacific region. Why do we not choose first-tier cities such as Beijing and Shanghai, or other countries such as Japan and South Korea?

Guo Sheng said that Japan and South Korea and other automobile powers have many restrictions on foreign brands entering the car rental market. The excessively large first-tier cities in China are not conducive to pilot projects. The warm invitation of Chongqing Liangjiang New District and the importance attached to the automobile industry are important reasons for attracting Daimler Group. Daimler Group also prefers medium-sized cities, and will launch smart vehicles in smart cars in 29 cities across the country.

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