Industry insiders indicated that, if everything goes well in the car rental process, the cost of renting from a chain agency would be much cheaper than renting from a local one. However, once scratches or collisions occur during usage, consumers would have to pay relatively higher compensation fees. Therefore, how to choose a car rental depends on consumer consideration.
Against this "bleak" backdrop, three Chinese companies - CAR Inc., VIPshop, and Wodingche.com - have gone against the trend and applied for overseas IPOs. Aside from corporate development strategies and the demand for cashing out by investors, this move may also be related to the recent renewed favor of internet concepts in overseas capital markets.
Such performance cannot meet the profitability requirements for domestic listing, thus going public overseas has become the only option for CAR Inc. CAR Inc. hopes to become the "first stock" in China's car rental industry, but its heavy debt burden, consecutive years of losses, the yet-to-mature Chinese car rental market, and its unclear financial reports all make its path to listing full of obstacles.
It is worth noting that there are currently no unified standards or regulations for car rental insurance. In order for this industry to develop better, relevant departments are advised to unify and standardize this matter, so as to avoid a series of disputes and conflicts arising from car rental insurance costs. Car rental websites, car rental services, and car booking platforms: www.wodingche.com.