On February 17, Shanghai-based Internet advertising service provider "eMedia" filed an IPO application with the U.S. Securities and Exchange Commission, planning to raise $100 million in a Nasdaq listing; on the same day, brand discount e-commerce company "Vipshop" also submitted its IPO application documents to the SEC, intending to list on the NYSE and raise up to $125 million. Prior to this, last autumn, Wheelz CEO Jeff Miller told AllThingsD that Wheelz had two advantages: one was its focus on the campus market, and the other was its team's relevant experience from electric vehicle infrastructure provider Better Place and Mercedes-Benz. China's largest car rental company, "Rental Car China,"
had already submitted its IPO application to the SEC on January 18, planning to list on the NYSE and raise about $300 million. This was also the first Chinese enterprise to file an application with the SEC after the SEC revised the submission rules in December 2011. Due to being in the quiet period before the IPO, none of the three companies accepted interviews from CCTV reporters, but the reporter learned from the prospectuses of the three companies that despite the short selling faced by Chinese concept stocks last year, these three companies still looked favorably upon their IPOs in the United States. However, whether these three companies can successfully go public remains highly uncertain. Taking the application documents provided by Rental Car China as an example, as of December 2011, Rental Car China had over 500 rental outlets in 66 cities across China, with a fleet size of approximately 26,000 vehicles, which was four times that of the second-largest competitor in the industry. However, for the years 2009, 2010, and the first nine months of 2011, the company reported net losses of RMB 3.2 million, RMB 43.3 million, and RMB 117.6 million respectively. Although Rental Car China hopes to become the first stock in China's car rental industry, its path to going public is fraught with challenges.
From the perspective of market rules, supply falling short of demand indicates that there are still gaps in the market that need filling, meaning there are many areas within our city’s car rental market that can be further developed and nurtured. Reflecting on the “hot” car rental situation during the Spring Festival, early preparation and strategic planning were key.
The significant loss of "franchise cars" by various car rental companies during the Spring Festival greatly reduced the number of cars available in the holiday market. Industry insiders suggest that given the current situation where demand is increasing while supply is decreasing, car rental companies could minimize losses caused by franchise car owners reclaiming their vehicles at the last minute by signing agreements with them in advance.
Moreover, industry participants should take into account the consumption habits of the primary target groups during festivals, understand consumer behavior during the Spring Festival, plan marketing activities ahead of time, and reasonably arrange the structure ratio between short-term rentals and full-month packages to ensure adequate market supply.
Hu Xing, manager of Changshun Car Rental Co., Ltd., introduced that for consumers, due to the limited availability of cars in the local car rental market, it is essential to make reservations well in advance for the next Spring Festival and prepare all necessary procedures in advance to meet the demands at that time.