On January 26, Shenzhou Car Rental (HK 0699) announced on the Stock Exchange last night that the company recently started cooperation with UCAR Technology and will launch a co-branded "UCAR Shenzhou Special Vehicle" service. China Shenzhou Express Client Display has opened 58 major cities across the country. This means that China Car Rental will formally enter the special car market through UCAR Technology.

The announcement stated that UCAR is an independent third-party company. According to the agreement, China Car Rental will provide long-term and short-term rental vehicles to UCAR Technology at a fair market price to carry out special car business. In addition, in the future financing activities of UCAR, Shenzhou Car has priority investment rights. China Car Rental said that this cooperation will help the company further enhance brand awareness and customer viscosity, create cross-selling opportunities, improve vehicle management efficiency, and seize strategic development opportunities. This cooperation is in line with the company’s continuous product innovation and development strategy that further extends the value chain.

Experts in the industry pointed out that the route design of China Auto Rental Co., Ltd. to take advantage of UCAR’s strong entry into the special car market is “three birds with one stone”. First, at the level of laws and regulations, China Car Rental only provides vehicles and circumvents the restricted area where “car rental companies may not directly engage in passenger transport”; at the operational level, the special car business is independent of the listed companies of China Car Rental, avoiding the early market investment in the listed companies. The loss came at the customer level, and the Shenzhou car rental brand endorsed the Shenzhou special car to quickly establish brand awareness and reputation, and establish a good customer protection.

On January 8 this year, the Ministry of Transport issued a document affirming the significance of the special car, encouraging the development of private cars and strictly prohibiting private cars from engaging in special car business. According to the document, the special car will integrate rental cars through the Internet and provide driver services through third-party service companies according to the wishes of the passengers. It is an innovative service model that spans the traditional boundaries of taxis and car rentals in the new era and meets the high quality and diversity of the transportation market. Changes and different needs have positive effects.

According to the analysis, Shenzhou Special Vehicle fully complies with the guidance spirit of the Ministry of Communications and is the development direction of the future special car model; as the largest Internet car rental company in China, Shenzhou Car Rental owns nearly 60,000 rental vehicles, and the fleet size exceeds the second to tenth in the industry. The sum of the names and advantages of the resources of the rental fleet are unique. Together with strong brand, customer resources and offline execution capabilities, Shenzhou Car Rental's entry into the special car market will completely change the competitive landscape of the existing car market.

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