Shanghai Dazhong Taxi & Car Leasing Corporate in China has asked for governmental investigation into operation of companies proving service of car renting online by Ministry of Transport of China, reflecting the fact that development of business of online car rental has made threat to taxi market in China.
Uncertainty of governmental policy has led to development of service of car sharing. Strategies including price-lowering and employ of ineligible private cars have resulted in animus competition, breaking the rule of the market, as Shanghai Dazhong pointed out.
Governmental regulations on operation this online service may have great impact on development of companies including China Didi and Uber China.
However, advantages including customer service of high quality, safety, lower price have led to improvement in customer satisfaction on online car rental service.
Improvement on operation efficiency through increase in the number of private cars rather than employ of strategy of lowering price may create better future of these companies as well as enhance quality of livelihood of Chinese people.
Source:Gasgoo