Can a tenant rent a nearby car at a price less than 30% of the market? Owners can earn more than 3,000 yuan per month by renting free cars? At present, the largest P2P car rental platform in the country, the development of PP car rental is hot – both tenants and car owners have rapidly increased. However, this new thing has encountered policy restrictions and some experts believe that “identity†is illegal.
PP car rental is a car sharing platform based on internet technology. This platform provides services for car owners who are willing to share their cars to rent car cars and let the car's idle time become cash. At the same time, it provides convenient and low-cost nearest car rental services for users who have car rental needs. According to Zhang Bingjun, the CEO of PP Car Rental, we are the provider of the information platform. Our goal is to be the industry's management and control platform.
Just over a year ago, the PP car rental business has covered 12 first-tier cities across the country. As of the end of November, there were 200,000 vehicles registered nationwide, and the monthly average transaction volume increased by 50%. In accordance with the transaction amount, PP car rental has accounted for 95% of the P2P car rental industry. The current active rate of registered 200,000 vehicles is about 60%, and each vehicle owner earns an average of 3,000 yuan per month.
While being accepted by the market, investors are also optimistic about this platform. In one year, the PP platform has won two rounds of venture capital.
However, this hot new business encountered operational obstacles. The new regulations of the Beijing Traffic Management Bureau clarified that “private cars are strictly prohibited for leasing operations†and the Shanghai Transportation Commission’s Transportation Management Office also proposed that “private cars are prohibited from entering the car rental platformâ€. Hangzhou issued relevant documents prohibiting the rental of private cars. The heads of transportation departments in Changsha and Sanya also pointed out that such P2P involves illegal operations.
Zhang Yibing, an expert of the Taxi and Car Rental Branch of China Road Transport Association, believes that these government documents are based on evidence. Private cars are mainly for private service. If a private car is rented, it is a business activity and it is obviously inconsistent with the purpose of personal use. Business activities should include business registration, taxation management, and issuing invoices. If it is only a public welfare activity, it only needs to provide oil and depreciation expenses.
Zhang Zhuting, director of the Department of Political Science and Law at the Department of Management of the Ministry of Transport, said that connecting the Internet to the traditional car rental industry has improved efficiency. However, private car rental is actually a form of sharing the economy, or “apportionmentâ€. Private car owners apportion the cost of keeping a car to other people to reduce their own costs. At present, there is still a legally unclear area.
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