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在线翻译:
szdaily -> In depth -> 
Hailing apps expected to slow amid new car-size regulations
    2016-10-11  08:53    Shenzhen Daily

    ONLINE chauffeured car hailing platforms’ development may slow down in the tough days ahead, as major Chinese cities squeeze out the popular compact vehicles from business.

    Mid-size or bigger car models are required for the burgeoning businesses in Beijing, Shanghai, Guangzhou and Shenzhen, according to the regulation drafts released Saturday for soliciting public opinions.

    Regulations in Beijing, Shanghai and Shenzhen state the vehicle must have a wheelbase longer than 2.7 meters for petrol cars, or 2.65 meters for new-energy vehicles, while Guangzhou’s terms demand a 4.6-meter long car body.

    Industrial experts say the rapidly-developing online chauffeured car hailing businesses are facing a sudden stop, and platform companies need to shift toward heavier assets, and incur higher costs.

    Yale Zhang, managing director of Automotive Foresight (Shanghai) Co., predicted that some of the platform companies might go bankrupt in the near future, as the car-sharing businesses’ development would not meet their projections when the larger, more expensive car models are required.

    He told China Daily, “These companies burned such a large amount of money to attract users, believing the situation to be transitional, but they might not survive long enough to see their age.”

    They were expecting another 10 years of speedy development, hoping that fully autonomous, driving vehicles would eventually boost the car sharing further, allowing them to dominate the future mobility solution markets, Zhang said.

    “Now, their ongoing plans are driving into a dead end. As long as the cars go bigger, the price will climb, and the users will decrease. The platform companies might not make as much profit as expected,” he added.

    Beijing Municipal Commission of Transportation claimed both hailed cars and taxies are operating with much less efficiency than public transport. The city is hoping to increase development of public transport rather than the more labor-intensive individual transportation sector.

    Zheng Yun, executive director of the automotive practice at Roland Berger Strategy Consultants, also sees an end to the online platforms’ speedy growth.

    He said, “When the policies force the individuals’ compact and economy cars out, the companies will have no way to attract drivers to join the platform with their individual cars.”

    Industrial data showed that only 2.4 percent of the Didi Chuxing drivers in Shanghai would meet the requirements. The platforms will have to purchase more mid-size cars to fill the void, so the light-asset platform operators will head toward heavier assets, said Zheng.

    A lawyer at Junhe Law Firm expected a heavy-asset online platform to receive full legitimacy for the company, its fleets and drivers.

    Shenzhou Zhuanche operates its business by renting vehicles from its heavy-asset affiliate CarInc, China’s largest car rental company by fleet scale. The company said the new regulations won’t influence its operation as the business model has always been focused on passenger safety.

    Yidao Inc. said it will follow the government’s regulations, making sure to meet every requirement and get certified with the fleets and drivers accordingly.

    Didi Chuxing, China’s largest online car hailing platform by volume, said in a statement that the operation costs would climb, and users’ payments would increase to more than double standard taxi fare.

    Didi Chuxing also called on local governments to nurture a favorable environment for the emerging car sharing business.

    (China Daily)

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