The transformation of conservative industries has never been achieved overnight. It requires the industry to break free from existing shackles and integrate new techniques, new forms, and other shopping factors into it. Only through continuous practice can the industry truly deteriorate.
The same applies to the car rental industry, which is most closely related to people’s lives.
In recent years, Zhejiang Province, Inner Mongolia Autonomous Region, Dalian and other places have gradually stopped the test of “network tour integration”, so that the conservative tour without renting a car can be integrated with the digital management plan of the Internet platform, and promote the continuous growth of the “tour without renting a car” ecology.
There have been cases of suspension of operations under the domination of authorities, as well as spontaneous construction by industry associations, and there have even been no cases of enterprises operating independently. For the hope of reform, urge the industry to stop exploring diversification.
The most intuitive change brought about by the test is that the collective expenses of drivers who do not rent cars have increased, and there are fewer refusals and usage restrictions in the non rental car industry. The operational efficiency of non rental cars has significantly improved.
The footsteps of “patrol network integration” have never stopped. At present, cities such as Beijing, Shanghai, Chongqing, Guangzhou, Hangzhou, Xi’an, Kunming, Shenzhen, Dalian, Shantou, etc. have applied digital techniques to promote conservative car rental property, and have conducted a lot of practical exploration, achieving phased results.
But the industry is still in a period of exploration. How should all parties cooperate under different forms? How do skills and shopping malls participate in innovation? How to eliminate the consequences of high volume? In the exploration of these achievements, a grand “experiment” in the non rental car industry is leveraging the influence of shopping factors, and by pursuing win-win situations from multiple parties, unleashing the vitality of the non rental car ecosystem in shopping.
A “reform” experiment
Car rental drivers are familiar with every route in the city and know where the easiest and fastest routes are to pick up passengers. Two years ago, a pilot program allowed teachers and teachers to taste the taste of “reform”.
In 2022, Zhejiang Province took the lead in testing innovation and revised the Zhejiang Province Route Transportation Regulations. After revision, if tour operators in Zhejiang Province recruit customers through collection and reservation, they will not be charged according to the displayed amount on the meter, nor will they be charged according to the pricing rules for ride hailing services.
This has shown the industry the comfort brought by commercialization.
After the revision of the regulations, several non rental car companies in Zhejiang province have suspended pilot operations, with more than half of the drivers choosing to operate at commercial rates and refusing to use higher service standards to pick up and drop off passengers. The Gaode “good no rent” patrol network integration plan has been adopted in this pilot. According to calculations, during the pilot period in Zhejiang Province, the number of driver orders during peak hours increased by 41%; The total cost of drivers did not increase by 34% compared to before.
In fact, the actual background of this birth is precisely that the industry is beginning to think about how to truly bring more incremental space to various parties through the commercialization factor.
The integration of patrol networks is not the latest viewpoint in the industry. Since the implementation of the no rental car reform in 2016, the collection of pre booked no rental cars (“ride hailing services”) has been included in the standard management. Under the guidance of the overall reform concept of “new and old business models are staggered and integrated, and a diversified and differentiated no rental service system is established”, various regions have accelerated the promotion of the no rental car reform for tourism, and the actual results have also achieved significant results.
But overall, conservative car rentals have just achieved a fundamental downgrading of digitization and morality. This is like a new city achieving route restoration, allowing more individuals and objects to participate in the growth of the city. This is a truly provocative proposition. For the non rental car industry, the introduction of more commercialized factors may be necessary in the challenging stage in order to realize the Pareto transformation of the non rental car industry.
The exploration in Inner Mongolia Autonomous Region is a model of commercial mutual aid.
In pilot areas such as Wuhai City, Manzhouli City, and Ordos, Inner Mongolia is exploring new operational routes – revising or implementing new online ride hailing strategies in pilot areas, integrating meter based pricing and online ride hailing pricing, and allowing online ride hailing platforms to develop network patrol integration in the local area. Without adding new online ride hailing capacity, Inner Mongolia is applying the existing functions of tour buses to coordinate online ride hailing, and online orders are charged according to the online ride hailing format.
In the specific implementation process, the first approach taken by Inner Mongolia is to issue operating licenses to ride hailing platforms in pilot areas, and stipulate that they are only limited to handling integrated patrols and not allowed to dispatch tickets to non tourist vehicles. The voluntary decision for sightseeing buses is to cancel the registration of parked vehicles and drivers on the online ride hailing platform, and operate in a flexible form of online ride hailing. The platform assists in obtaining new orders for sightseeing buses in the upstream shopping mall.
In terms of price, Inner Mongolia has adopted the practice of combining two billing forms, allowing tour buses to fulfill the “one car, two prices” policy. When the sightseeing vehicle is connected to the online booking platform for online services, the platform’s pricing will be fulfilled by clicking on the meter for pricing in the form of sightseeing.
Inner Mongolia’s reform has also adopted the Gaode “good without rent” network integration plan. This move means that the industry has begun to deeply introduce the Internet platform for stop and mutual aid. The main goal is to provide multiple supports for tour buses in terms of traffic, skills, data, etc.
According to Guo Ying, Director of the Secretariat of Inner Mongolia Provincial Department, taking Ordos as an example, there are currently more than 400 drivers participating in the city. After a month of integrated operation of the patrol network, the average daily online order cost per driver is about 200 yuan, with the highest monthly online order cost being 20000 yuan.
The crux of breaking the game: embracing the mall
The approach of the above cases is largely influenced by the introduction of commercialized factors. And the foot of the “shopping mall” that has never been overlooked by the car rental industry is establishing such a revival state.
After introducing the factor of commercialization, the most direct effect and response come from the driver side. The relevant person in charge of the Dalian Non Rental Automobile Association stated in an interview that after the Dalian Non Rental Automobile Industry Association launched the Dalian Patrol Network Integration Platform “Dalian Taxi” based on the “Good Non Rental” plan of Gaode, the average monthly expenses of drivers have not increased by nearly 800 yuan.
Besides drivers, the overall operation of the car rental industry also needs to lose discrimination. In the actual situation of Jiaozuo City, Henan Province, the integration of patrol and network has focused on the situation of enterprises, transforming the existing conservative six non rental car companies into intensive, large-scale, and corporate. Jiaozuo has established an intensive enterprise that integrates ownership, with several companies gathered together to achieve overall positive cyclical growth.
It is worth mentioning that good innovation can potentially benefit all ecological parties. Beijing does not rent cars. The central government handles the dismantling of Mingche in the urban and suburban areas of Beijing. It is the operator of the same call platform 96106 and the elderly assistance hotline 95128 in Beijing. Based on the “Good No Rent” patrol network integration plan of Gaode, the central government has downgraded the conservative electric calling platform for the adjustment of Beijing’s no rent cars, increasing the success rate of electric calling cars from 50% to 85%.
With the flexible market-based plan, the Central Government also explored the trade form of mileage service fees to realize the stable participation in operation and governance. With this, the integration of patrol networks is no longer a superficial innovation, but truly has a path of continuous growth.
Various practical verifications have shown that in order to create a true “ecological economy” in the car rental industry, it is far from enough to only cause losses for one party. Only by introducing the factor of commercialization can we enable drivers to increase their expenses, non rental car companies to enter the cycle, and platform companies to participate in continuous research and development. The path to integration of patrol and network is to enable multiple parties to enter a mutually beneficial cycle of continuous iteration.
As Zhao Ming, Deputy Director and Senior Economist of the Central Committee for Route Transportation in Jiaozuo City, Henan Province, said, “The integration of patrol and network services is a new form of development, but we must not take the first step (i.e., the reduction of tourist bus networks). We must grasp the characteristics of non rental passengers, focus on passengers, and renovate through skills and forms to do more things. This is the direction of the future.”
In fact, all parties involved in promoting innovation have also recognized this. The use of techniques, forms, and systems to transform the market has become a prerequisite for the integration and win-win of ecology, which has resonated.
On April 25th, Gaode announced the “Good No Rent” 3.0 Patrol Network Integration Processing Plan. The plan for the downgraded “Good No Rent” 3.0 pregnancy AI dynamic and static price adjustment model and skill base is aimed at injecting commercial vitality into the integration of patrol networks through price adjustment capabilities that match supply and demand, win-win trade forms, and skill initiated service insurance. Since 2020, Gaode has launched a “good no rent” online tour integration plan, and has gone through two iterations. The shopping mall has helped the no rent industry achieve digital and moral downgrading.
Nowadays, the industry has tasted the fruits of the integration and innovation of the patrol network, inheriting and introducing the factor of commercialization, revitalizing the industry ecology, and becoming the focus of the next stage. According to acquaintances, Inner Mongolia Autonomous Region plans to inherit and track based on the current pilot situation, while applying big data analysis to summarize resumes and compete for implementation throughout the region. Next, they hope to truly promote the two-way integration of tourism without rental cars and collecting pre booked without rental cars.
According to Han Biao, a professor at Shenzhen University, the continuous growth of the car rental industry is definitely based on win-win cooperation among multiple parties. Close mutual assistance between mall entities, with more patience and exploration, can lead to a greater level of win-win situation.
2024 is the year of breaking through the special pilot program for the restoration of a strong transportation country. The industry generally believes that this is also a crucial year for the car rental industry to deepen innovation and build new productivity. In this context, how to inherit and use shopping malls to revitalize the ecosystem has become the crux of whether patrol network integration will continue to grow, and it is also a crucial issue that all parties need to explore.
“The growth of new productivity can revolutionize conservative production forms.” Cheng Guohua, a central researcher at the Road Traffic Growth Research Institute of the Ministry of Transport, believes that new skills, forms, and systems are crucial for the transformation and downgrading of conservative tourist vehicles. Among them, in the process of price changes from the authorities to the authorities, new techniques need to be adopted to provide technical support for deepening the reform of freight rates. In addition, it is also possible to optimize and integrate the distribution of benefits in the rental car industry through renovation.