Recently, the bumpy shared car rental stationed in Hangzhou. In less than a year, many P2P car rental platforms have come to Hangzhou to expand the market. As one of the representatives of the “sharing economy”, the P2P rental car seeks to integrate the owners of idle vehicles with the tenants of urgently needed vehicles to achieve a win-win situation and alleviate the traffic problems faced by modern cities.

However, as a new thing, P2P car rental lacks a clear legal and regulatory basis for management. It is the existence of different opinions on whether to guide or contain P2P car rental, which has affected the supervision of the department and the development of the industry. Experts suggest that the legal gap be filled as soon as possible to guide the development of the industry in an orderly manner.

P2P rental car market is vast

In recent years, the traffic congestion situation in major cities has become increasingly serious, and some have introduced restrictive licensing policies. The data from the Traffic Management Bureau of the Ministry of Public Security shows that the number of private cars in China is still less than 100 million in 2013, while the number of motorized drivers has now exceeded 300 million.

The scale of the car rental market is constantly growing. According to Roland Berger Strategy Consultants' report, the scale of the Chinese car rental market in 2013 was 34 billion yuan, which will increase to 65 billion yuan in 2018.

“However, according to our statistics, at present, there are only 400,000 vehicles sold by China’s 5,000 car rental companies. The largest car rental company has only 55,000 vehicles,” said Chen Weiyu, bumpy shared car rental CEO.

Inspired by the sharing economy, P2P car rental platforms represented by PP Car Rental, Treasure Car Rental, Bumper Shared Car Rental etc. have been involved in the car rental market one after another, trying to integrate the owners of idle vehicles and the tenants who urgently need the car. P2P rental cars are favored by tenants because of their large number of models, convenient vehicle pickup, and prices that are 30%-50% lower than the market price. For car owners, they can reduce idle waste and change from "car ownership" to "car support".

At present, the investment companies such as PP Car Rental, Treasure Car Rental, and Bumper Shared Car Rental have all been invested by investment companies. According to Chen Weiyu, since the platform was launched in May 2014, the number of registered users has exceeded 300,000, and nearly 30,000 vehicles have been registered online.

   Sharing economic services first

Sharing the economy is to use the public information platform to integrate resource owners and resource demanders, realize the sharing of usage rights, and revitalize idle business models. This model has been prevalent in Western developed countries and is considered to be conducive to the promotion of green, energy-saving production, living and consumption methods.

Sharing the economy is more vulnerable to the younger generation. According to the statistics of bumpy shared car rental, both young owners and tenants are mainly young people. Nearly 80% of car owners are between 25-40 years old, and nearly 60% of car owners are between 25-35 years old.

In terms of car rental demand, 44% of tenants are used for daily travel, 40% of tenants are traveling around, and 9% of tenants are test drive experiences. Chen Weiyu said that some tenants are trying to experience rare models, or to buy a car before the test drive, which allows them to communicate directly with the owner. "This part of the tenants has exceeded our expectations."

In the eyes of people in the industry, P2P car rentals are different from taxi drivers. In addition to linking tenants and car owners together, they also need to do a good job of operating services before and after. Currently, some of the P2P car rental companies that are responsible for operating services already account for half of the total.

In addition, the security issue is particularly concerned about sharing the economy. The P2P Rental Car Company must provide tenants and car owners with an introductory review and install smart car networking terminals for leased vehicles to view information such as vehicle location, vehicle health, and fuel consumption. At present, some P2P rental companies have partnered with third-party guarantee companies to provide consumers with a full range of liability insurance.

     Legal gap to be filled

In recent days, discussions on whether or not the Drop Train No. 1 is a “black car” have been heard. The topic of whether or not the P2P car rental is legal has also attracted public attention.

At present, some local departments have regulated this according to the rules of road transport. For example, the Beijing Traffic Management Bureau's new regulations clearly stipulate that “private cars are strictly prohibited for lease operations”, and the Shanghai Transportation Commission’s Transportation Management Department also proposed that “private cars are prohibited from entering the car rental platform”. The responsible person of the Hangzhou Motor Vehicle Service Administration Automobile Lease Management Office pointed out that the car rental business vehicle should be a vehicle registered by the industry management department.

PP car rental and other online questions on legality indicate that the private car rental contract under the P2P car rental model is a civil contract between equal entities. It is a rights and obligations relationship within the scope of private benefits. It does not belong to passenger transport operations and considers personal car rental ( Such as the sharing of rental mode, the validity of the service contract shall not apply to the "Regulations of the People's Republic of China on Road Transport".

"P2P car rental mainly involves property law, not road transport regulations," said Chen Weiyu. She also said that there is no clear law prohibiting P2P car rental, which is still a legal blank.

Some experts believe that P2P rental management must balance factors such as efficiency, safety, and order. In the case of increasing market demand, it should actively improve laws and regulations to fill gaps and use “sparse” to “block”.

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