Legitimacy of conventional car rental methods challenged

Recently, the practice of providing drivers for long-term rental cars in car rental companies has been questioned. Li Xuening, an attorney of Beijing Heda Law Firm, publicly stated that this kind of “car rental and renting” service on behalf of the driver violated the “Regulations of the People’s Republic of China on Road Transport” and “Administrative Measures for Automobile Leases” and other regulations. It is reported that Li Xuening has reported this situation to the industrial and commercial and traffic management departments of 6 cities including Beijing and Shanghai respectively. The Shanghai, Tianjin and Beijing Administration of Industry and Communications and Traffic Management Department have given a reply that they will investigate such illegal business practices. For a while, the long-standing rental model has been challenged.

Driving Car Rental Suspected of Violations It is reported that Li Xuening has questioned the traditional "drive car rental", which means that when a customer hires a car, the car rental company will be accompanied by a driver. Although the difference between a car rental car and a driver car rental car, there are great differences in the nature of the law. According to the legal definition, self-driving car rental is a kind of property lease. From the perspective of industry properties, it should be classified into the category of car rental industry. Driver-driven car rental is essentially a passenger transport operation and essentially belongs to the taxi industry.

After searching through the Internet for most of the car rental companies in Shanghai, the reporter found that almost all car rental companies have a “drive car rental” project. A car rental company official told reporters that from the day when the car rental market was born, car hire started to exist. This is an open rule in the car rental industry, and the drive for car rental is larger than the market for self-driving cars, and the market demand is even stronger.

In fact, currently 14 cities such as Beijing, Shanghai, Chongqing, and Hangzhou have clearly defined the business scope of the car rental industry, stating that “car leasing operators must not engage in or disguise the road transport business activities by providing driving services”. If you want to engage in car rental service, you need to obtain relevant permits. According to the reporter's understanding, so far, there is no car rental company in China that has obtained a legitimate license for car rental.

In this regard, Li Xuening believes that the driving behavior of “car rental and renting” belongs to passenger transport services and must achieve passenger qualification. However, the car rental company has not yet obtained the relevant qualifications and it is illegally operating. The rented car company rents the right to use the vehicle itself and provides the driver with labor export. Unless the car rental company requires the customer to first sign the car rental slip and sign another labor dispatching list, the act of “car rental and renter” is a violation of the law.

Management unit supervision is not uniform It is reported that the reason why many car rental companies currently provide this service, because the car rental and renters can give car rental companies a very high profit.

According to an industry source, the main customers of driver's car rental are enterprises and business people, who belong to the high-end consumer groups in the car rental industry, and the return on business profits is quite high.

The profits from driving a car rental car are about twice as high as car rental business. Self-driving services are charged 24 hours per day, while driving services are divided into three types: daily, half-day, and point-to-point (from one destination to another). If the schedule is reasonable, it is not a problem for a driving driver to pick up 3-4 orders a day. Due to the high single fee, the profits from car rental are surprisingly high compared with self-driving cars.

In addition to high profits, the blank of legal management has also caused the "drive car rental" violations in many places for many years. In an interview, Li Xuening pointed out that the management departments of car rental agencies around the country are different, some are urban management departments, some are transportation departments, and some are public security bureaus. Unless there are user complaints, these departments will not take the initiative to investigate, otherwise it is suspected of "fishing law enforcement."

Insiders pointed out that if the legal status of car rental is granted, it will lead to a series of new problems. For example, how to define how to rent a car and a taxi, how to use a driver to rent a car, how to manage a passenger car, and how to manage a driver of a car rental car.

Relevant departments should carefully consider related issues and do not simplify them.

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