As bike-sharing booms in China, a guideline was released by the government to promote a new form of the sharing economy - this time involving vehicles.
Car-sharing, which provides an alternative for people to travel in cities, will be the new innovation in a service model. The released guideline focuses on legal status, insurance and regular maintenance of cars before they join sharing services. It encourages the development of car-sharing, which is expected to reduce the liking to individually buy vehicles and ease traffic congestion amid a surge in recent years of private-car ownership.
“However, there is a long way to before the purpose of the guideline comes true,” said Xia Xueluan, a professor of sociology. “First, a car costs at least 100.000 yuan, almost 500 times that for a shared bicycle. Besides, shared cars also take the same spaces as other private cars, so parking will be another problem.”
“Meanwhile, traditional car rental companies are competing with the emerging car-sharing business. It's estimated the charges will be almost the same for both forms of cars rentals,” Xia said. “How to survive fierce competition will remain a challenge for car-sharing providers,” he added.
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