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The collapse of shared cars is continuing, and it is the turn of the international auto giants.

Many media reported that Car2Go, a shared car brand owned by Daimler Group, the parent company of Mercedes Benz, has been completely offline in Chongqing. Fuel Finance asked Car2Go staff to confirm the matter, and the other party said that there was no official statement.

Chongqing is the only city in China that operates car2go cars, and also the first city in Asia to provide this service. According to public data, four months after car2go was launched in Chongqing, the number of registered members exceeded 100000.

When China's car sharing companies fell one after another, car2go, which was once famous in Chongqing, was not spared.

Car2go China encounters acclimatization

The exit of car2go has been predicted. Zhang Lei is one of the first users of car2go in Chongqing. He usually uses car2go more than taking a taxi. "Since about a month ago, Chongqing's car2go cars have been gradually transported away by trucks." At the same time, Zhang Lei opened the car2goApp and found that there were no cars available in the city.

Car2go was first launched by Daimler Group in Germany in 2008. It was put into operation in Chongqing in April 2016. At the beginning of its launch, 400 Mercedes Benz Smart cars were launched. At that time, car2go had already reached 15000 vehicles in global operation.

Chongqing is probably the most competitive city for shared cars in China. In addition to car2go, there are nearly ten shared car brands such as Lifen Auto's Wanda, Chang'an Travel of Chang'an Auto, GoFun of Shouqi, EVCARD of SAIC, etc. Car2Go quickly opened the market in Chongqing with its unique Smart model and preferential policy of zero deposit. "At the beginning, car2go is much cheaper than Didi Taxi for the same distance." Zhang Lei said.

Although the competition is fierce, car2go has a huge advantage by virtue of its cooperation with Chongqing government and commercial institutions. When other shared cars must be picked up and returned at the designated place, car2go can park in the public parking space of the city through communication with the Chongqing Municipal Government.

Car2Go also reached cooperation with Longhu Real Estate. "The shopping malls under Chongqing Longhu Real Estate will separate a part of the area for car2go in the square for parking, and there are also some parking spaces in the community under Longhu Real Estate." Zhang Lei told Fuel Finance, "and members and community users of the shopping malls under Longhu Real Estate can waive the registration fee of car2go."

However, these actions cannot solve the parking problem of car2go. Yun Tao, who was among the first to experience car2go services in Austin, USA, told us that when looking for Chinese makers, car2go parking space in China is still the biggest problem compared with the United States.

"There are still too few free parking spaces in China. The market share of government parking spaces in Europe and the United States is very high, and they are charged by code meters. Car2go uses such parking spaces for free, while the number of free municipal parking spaces in China is much less." According to the 2018-2023 China Parking Industry Market Survey and Development Strategy Research and Consultation Report, The average ratio of cars to parking spaces is about 1:0.8, compared with 1:1.3 in developed countries, the proportion of parking spaces in China is low, and the gap of parking spaces in China exceeds 50 million.

Another problem is the customer price of car2go. "Taxi fees in Europe and the United States are particularly high, compared with car2go's pricing, which has sufficient advantages. However, domestic taxi fares are very cheap, and if we want to reflect the price advantage, the passenger price of car2go cannot be increased." The cost of Mercedes Benz Smart used in car2go is far higher than that of domestic shared car brands, and the passenger price cannot be increased, so it is inevitable to encounter acclimatization in China.

International car enterprises layout and share travel

The concept of sharing economy flourished in China, but the sharing car industry was started by Daimler ten years ago.

Daimler first launched the car sharing service in 2008, which was tested by internal staff and first promoted in Europe. The earliest car2go cars used battery energy, but due to the lack of charging stations, their promotion in Europe met resistance, and they withdrew from many cities in the UK after less than a year of operation. After learning the lessons, the Smart cars used by car2go in China are all fuel powered vehicles.

Car2go is an important step for Daimler to plan its travel. In addition to the well-known Mercedes Benz brand, Daimler also acquired the taxi application MyTaxi in 2014, which is now the largest taxi application in Europe. In the same year, Daimler acquired RideScout, a German car sharing software, and on this basis, it incubated its time-sharing rental business car2go.

As for the news of this withdrawal from Chongqing, car2go user service center responded that "the company is making strategic adjustment". Some insiders believed that the adjustment might be related to the cooperation between Daimler and BMW. On March 28 last year, BMW and Daimler reached a cooperation to establish a new car sharing company ShareNow to integrate their original DriveNow and car2go businesses.

The contract clearly stated that "both parties will each hold 50% of the shares of the joint venture. But in their respective core business areas, both parties will still maintain a competitive relationship".

It is reported that ShareNow has BMW, Mercedes Benz, Smart and MINI brand cars, mainly concentrated in Europe and North America, with a number of more than 20000. The company's business will be dominated by Olivier Reppert, the former general manager of car2go.

Daimler has shown great interest in China's travel market. On May 9, Daimler and Geely established a joint venture, Weixing Technology Co., Ltd., with 50% shares held by both parties and a registered capital of 1.7 billion yuan. The goal is to provide high-end special car travel services to some Chinese cities. Joining hands with Geely is regarded as an important step for Daimler to lay out China's online car hailing industry.

In addition to Daimler, BMW has also begun to layout the travel market in China. As early as 2017, ReachNow, a time-sharing rental project under BMW, entered Chengdu, China, and cooperated with EVCARD to officially launch shared travel services in China.

In the future, in addition to the sales of private brand cars, international auto manufacturers may play an additional role in China - mobile travel service providers.

It's not easy for domestic travel sharing players

In China's travel market, the layout of domestic and foreign manufacturers is in sharp contrast. While international auto brands continue to increase their weight on China's travel market, domestic car sharing manufacturers have a hard time.

It is reported that in 2015, there were hundreds of enterprises with time-sharing lease as their main business. In 2017, EZZY shared car broke down, becoming the first domestic shared car project to declare failure, which also triggered the collapse of the foam in the shared car industry.

According to incomplete statistics, as of the end of 2018, the shared automobile industry had completed 31 financing transactions, including 10 financing transactions in the amount of more than 100 million. Also in 2018, EZZY, Zhongguan Shared Automobile, Muggle Travel and Youyou Car four shared automobile platforms announced that they would stop operating. The decline is still continuing this year. At the beginning of 2019, some platforms encountered a wave of refunds.

Audi for 50 cents, BMW i3 for 1 yuan, and BMW 1-Series for 1 yuan... In 2017, the first year of the so-called shared car, similar crazy promotion methods have appeared on many shared car platforms.

The pace of crazy expansion cannot cover up the business model that is difficult to make profits. Compared with bike sharing, the early investment of car sharing is huge. The vehicle purchase cost, parking cost, fuel cost, maintenance cost and operation and maintenance cost involved in each car are huge costs. At the same time, due to the traffic conditions, car sharing cannot be expanded in a large scale in a short time like bike sharing.

From birth to maturity, it took nearly 5 years for shared bicycles to be recognized by the market and consumers. In contrast, the shared automobile industry, which has higher costs and higher technical barriers, will only take longer.

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