On March 16, 2022, Wukong Car Rental, together with Sunac City of Dreams and Haval brand, held a blockbuster integration strategy conference with the theme of "Dare to Dream, Dare to Enlighten, Dare to Create". As the leading aggregation platform in the field of domestic Internet car rental travel, Wukong Car Rental completely broke the traditional cognition of the car rental industry from the outside world at this conference, and released a new APP (including mini program) product form upgrade, a new brand Slogan, a new brand promotional trailer trailer, a new original design of the brand's main IP form and many other fierce materials, just two hours of the conference, a large number of new elements are overwhelmed, which can be called dry goods, full of sincerity.
Over the years, the vast majority of users, for the matter of car rental, there has always been a relatively traditional cognition, that car rental is only a choice to make up for daily travel, is a "alternative" in addition to vehicle self-sustaining, taxi and public transportation. In this regard, Hu Xianhe, founder & CEO of Wukong Car Rental, said that in the future, people will generally pursue use, rather than ownership. This is an unstoppable megatrend of socio-economic progress.
Hu Xianhe predicts that in the next 8 years, by 2030, automobile manufacturers and travel service providers will be deeply integrated, not only in industrial cooperation, but also in the equity structure, you have me, I have you, and work together to travel car services. At the same time, with the development of technology, the CaaS model (Car as a Service), which is a subscription-based on-demand car rental, will replace most of the existing travel modes, and people will move from the pursuit of ownership to the pursuit of use, so as to achieve true shared travel.
The following is the full text of Hu Xianhe's speech:
Hello everyone, I'm Hu Xianhe. Many friends can't come to the scene because of the epidemic, and we especially understand it. We are particularly touched by the friends who took the risk to come to our press conference today, and we are real friends! Thank you!
The world in 2022 is too chaotic, but we in China are still wonderful: the just-concluded Beijing Winter Olympics and Winter Paralympic Games have been very successful; next, we will also usher in the 100th anniversary of the founding of the Communist Youth League, the 95th anniversary of the founding of the Army, the Chengdu World Universiade, the Hangzhou Asian Games, which are worth looking forward to;
In the past 2 years, our biggest problem is that the epidemic is constantly troublesome, every festival, there will be an epidemic, once the peak season, there will be a lockdown, resulting in a difficult situation for many enterprises, however, as an entrepreneur in the travel industry, I always firmly believe that we will find a better coping strategy, we will definitely defeat the epidemic, we will return to normal state and enjoy a free travel life; in short, no matter how difficult the impact of the epidemic is today, I am still full of expectations...
The more difficult it is, the more we must face the difficulties and boldly seek change! Wukong Car Rental and Sunac Cultural Dream City, as well as the Haval brand, will carry out all-round strategic integration and cooperation from 2022 to jointly open a new era of "dare to dream, dare to go, dare to create", which is also the theme of our press conference today, let us look forward to it together.
In the past 8 years, the automotive industry and the travel industry can be said to have undergone great changes, the rise of shared travel, the rise of new energy car manufacturing forces, the entry of countless capital and startups, all traditional automobile manufacturers and traditional travel service providers are changing and transforming, and Wukong Car Rental is also one of the participants and witnesses of this change.
What does the future hold for the automotive industry? What does the future hold for mobility? What are the future plans for Goku Car Rentals? That's the topic I want to talk to you about today.
Some of my content today may subvert some of your inherent cognition, and even have great controversy, please be a little mentally prepared.
First of all, I would like to ask you a digression question, are you in favor of seeing different ideas? Are you in favor of going to three or four? Are you in favor of liking the new and hating the old? Or are you in favor of polygamy/polygamy? After all, monogamy is the mainstream system that has only been formed in the last hundred years, and a hundred years ago, most parts of the world supported polygamy.
But today, I think the vast majority of people are against polygamy because it is no longer in line with the values of modern civilization; I myself am firmly opposed, but I am mainly afraid that my wife will know that the consequences will be very serious.
But what if I'm talking about renting a car? My answer is Yes!
Think about it, a post-90s wage earner, if you want to own a million luxury car, unless you win the lottery or family demolition, basically can't achieve it, but what if it is a car rental? Millionaire cars can also be rented at any time, and you can change cars every week, as long as you are an old driver. We have a lot of Millionaire cars on the Wukong platform, and we found that there are some young people who go to places like Guangzhou, Shenzhen, Sanya, and often rent a BMW Z4 convertible, or a Porsche 718 convertible, or even a Ferrari California convertible, a Masarati convertible, they may not be able to afford these luxury cars, but they dare to spend in a rental way. Therefore, the value and significance of renting a car deserves our re-examination.
At the end of last year, a sentence by a big man in the new energy vehicle industry caused a lot of controversy, he said that "I don't understand why there are still people buying fuel vehicles", in fact, I don't understand very much.
And, I don't understand why anyone is still buying a car?
Why do we buy a car? I've asked a lot of people, and they all have different answers, but in summary, there are only three reasons to buy a car:
More convenient, more face-saving, more economical and cost-effective. But do these three reasons really hold true? After much thought, my answer was: No!
Let's start with one of the reasons to buy a car: it's more worry-free and convenient. I don't think:
First, buying a car is a very troublesome thing, including choosing a car to see the car and test driving, extremely time-consuming, most of us are not experts in learning cars, bargaining with sales consultants is very annoying, buying a car also involves a lot of procedures, buying a car to maintain a car is more troublesome, annual insurance, maintenance and repair, annual inspection, etc., after buying a car, the sale of cars is more troublesome, more procedures, more pits, so when you just bought a car, after driving for a period of time, you find that you don't like it, you want to replace it, but will you replace it immediately? No, because it is too troublesome, the average replacement cycle of Chinese is 3-5 years, like me, I have not changed my car for 13 years since I bought a car in 2009, because I am particularly afraid of trouble. So buying a car is a very inattentive thing, everyone agrees, right?
Second, buying a car cannot meet the needs of a variety of car use scenarios, including the demand for cars when the number is limited. If you buy a 5-seater car and go out with the elderly and children on weekends, is it not enough to sit? Do you need a 7-seater car? If you buy an economy car and encounter an important reception, is it not appropriate? Also, is there still no car when the number is limited? Our car owners in Beijing are not allowed to go on the road for more than 50 days a year, where do we come from?
Third, buying a car is limited to local life, and there are still no cars available in different places. When you buy a car in Beijing, when you go to Yunnan, Guizhou, Chongqing, Shanghai, Guangzhou, Shenzhen and Hangzhou, are you still useless? So buying a car is not as worry-free and convenient as we think.
Of course, some people will say that the car is a third storage space, my own car, I can put a lot of commonly used things such as sports equipment, drinks, etc. in the trunk; there is, their own car, it is there, want to use at any time, without bothering others more convenient. However, if it is these two needs, you can still rent a car for a long time! Renting a car for a long time also saves the trouble of buying a car, changing a car, and maintaining a car, why do you have to buy a car? Long car rental can also meet the demand, but also a lot less trouble, why do you have to buy a car?
Therefore, more worry-free and convenient is not a good reason to buy a car.
Let's look at the second reason to buy a car: more face. I don't think so.
First, there are some sports cars, such as the Porsche Ferrari Lamborghini, which are indeed very windy and have a lot of face, but even if they add Mercedes-Benz BMW Audi, these so-called face-saving luxury cars, their sales account for less than 10%.
Second, the remaining 90% of the cars are mainly cars with a mobility function, and only have a mobility function. Driving daily substitutes, there is no face, and the success rate of the sister is almost 0.
Third, today, in cities such as Beijing, Shanghai, Guangzhou, and Shenzhen, many assets are very expensive, such as houses, in contrast, for young people, they do not feel that owning a car has face.
Therefore, buying a car does not have more face. Having face is not a good reason to buy a car.
Others say that buying a car is more economical and cost-effective, which is really a big mistake:
First, the average usage rate of buying a car is very low: the average use time of buying a car is up to 2 hours a day, the average use of 365 days a year is only 250 days, the number of limited cities is even less, the total use of a car in a year is at most 500 hours, a total of 8760 hours a year, 500 divided by 8760 usage rate is less than 6%, the rest of the time idle there to catch the soil and bask in the sun, you pay 100% of the cost, but the use rate is less than 6%, how can this be economical? This is obviously not cost-effective.
Second, buy a car, what is the time cost of buying and selling a car, as well as daily maintenance, insurance, and annual inspection? The most expensive thing for modern people is time. I'm afraid no one has calculated this.
Third, the expenditure on car purchase includes one-time expenses such as car payment, loan interest, purchase tax, car and ship tax, decorative film, etc., as well as daily expenses such as insurance, daily maintenance and repair, annual inspection, car washing, etc., the cost is extremely high, not cheaper than car rental; in addition, the car is a depreciating consumable, and the depreciation depreciation depreciation of the car every year is very high. Moreover, buying a car also needs to be equipped with a parking space, not only the family must have a parking space, the unit must also have a parking space, otherwise it is too difficult to park today, which is a greater cost.
Therefore, buying a car is not necessarily economical. Is it cost-effective not to buy a car and rent a car?
Let's do a comparative calculation of buying a car and renting a car. We do not come to the false, but to the real:
Taking the Volkswagen ID4 new car as an example, buying a car for one year and renting it for one year is compared. ID4 market guidance price of 219900, the current market transaction price of about 90% off, 197910, buy a car one-time license fee, film and decoration, one year of insurance, maintenance, a total of about 11,000 yuan, assuming a loan to buy, down payment of 30%, annual interest rate of 8%, loan interest of 11083 yuan, the cost of buying a car totals 219993, ID after one year the residual value is about 62%, if disposed of after one year, the use cost of this year is 83655 yuan, an average of 6971 yuan per month. This is the cost of using id purchase for one year. This does not count the time cost of buying and selling this car.
So, if we choose to lease, how much does it cost each month? It is 4500 yuan. We only need to go through the one-time rental and return procedures.
You might say that one year is not appropriate because the first year of a car costs the most. So what are the results of our 3-year calculation? Buy a car and hold ID4 for 3 years, the monthly use cost is about 4600 yuan, car rental, 4000 yuan per month is enough.
If you still don't believe it, you can open Wukong's APP long-term rental section, according to 1 year rent, Chengdu 3599 yuan per month, Guangzhou 4200 yuan per month, the new ID4 cross, everyone can rent casually. Everyone is welcome to rent.
This is the comparison between long car rental and car buying, which is significantly lower than the cost of buying a car.
So, if you don't rent for a long time, what about renting as you go? It's also more cost-effective to use and rent than to buy a car.
I have a lot of friends around me, including myself, who haven't bought a car in over 10 years. We now rent a car everywhere we go, either with a driver or by renting our own car.
Taking myself as an example, as a business person, I definitely belong to the crowd that goes out more, and I have calculated that the cost of my car every month is less than 3,000 yuan. If I buy a car, as a business person, how can I buy a car with more than 200,000 yuan? Then my cost for a month can't be less than 5,000. I was stupid enough to buy a car.
There is also a loyal user of Wukong here today - Mr. Lin Shuiyang, the founder of Hug Tang Media, Shuiyang rents a car everywhere he goes, and he has a special hobby, he especially likes Tesla, he rents tesla to us at least dozens of times a year, and we Wukong happen to have Tesla in many cities, which can fully meet his needs. But his monthly car costs about 10,000 yuan. If he wants to buy a car in the city he often visits, a hundred thousand a month is not enough.
It can be seen that renting a car is cheaper and more cost-effective than buying a car. Moreover, the faster the depreciation of the model, the more cost-effective it is to rent a car than to buy a car. I don't believe that you can do the math for yourself. Of course, a model with a high retention rate like Haval is another matter.
Therefore, economic cost-effectiveness is not a good reason to buy a car.
Through the previous discussion, we concluded that buying a car is not worry-free and convenient, buying a car is not more faceless, and buying a car is not more economical and cost-effective. So I really don't understand why anyone still buys a car?
Compared to buying a car, is it not good to rent a car?
Renting a car is obviously a smarter option. Compared with buying a car, car rental is worry-free, flexible and convenient; compared to buying a car, you can often change the car, you can go to the twilight, like the new and tired of the old, and have a face; compared with buying a car, car rental can reduce idleness, more economical and cost-effective.
That's what we think, do you agree? Some friends may still disagree, it doesn't matter, everyone go back to calculate the account, reflect on it, if everyone still thinks that what I said is not right after calculating the account, come back to me, I accept the controversy on behalf of Goku.
In fact, we have a more radical view, which is:
Everything that depreciates is not worth owning and is more suitable for leasing.
Of course, this does not include some low-value daily consumables, which mainly refer to high-value durable goods. In addition to antique calligraphy and paintings, good location real estate and other things that can increase in value, it is worth owning, and other high-value durable goods that will depreciate are not worth owning. I think that people seem to be suitable, such as marriage relationships, if one party progresses too fast, the other party is significantly backward and depreciated sharply, marriage is also very easy to go wrong, because one party may not want to continue to have.
Further, our view is:
In the future, people will universally pursue use, not possession. This is an unstoppable megatrend of socio-economic progress.
In the past, we had a lot of things to own, but now, we are increasingly choosing to use it as a lease rather than own it.
Here are some typical examples. For example, the company's office printers, computers, before we were all bought, but now, basically to rent the main; there is a piano at home, before the child to learn the piano, can only buy one, but many children learn to learn to give up, and then the piano has become an idle ornament, or a very expensive ornament, the piano itself is very expensive, accounting for the living room area is more expensive, and then second-hand disposal of it, and not valuable, depreciation is severe. Therefore, now piano rental has become a good business: the cost is not high, it can be returned and exchanged at any time; the piano will not be idle, and the utilization rate has also increased significantly. These are high-value durable goods that depreciate, and they are suitable for leasing, not for ownership.
And all the software, mobile phone bill/traffic, video site membership, we are paid through annual or monthly rent, the pursuit of use, not owned.
In addition, shared bicycles, charging treasures, before we all bought one ourselves, now do we still buy? Now it's all on a per-use basis. I haven't had a charging treasure with me in a long, long time.
Even jewelry, clothes, such as evening dresses, wedding dresses, are now becoming popular for rent-to-use, because these items are very low in use, expensive, and not suitable for ownership, but suitable for leasing, as long as they enjoy the right to use.
In the future, more and more goods will be produced mainly for rental services, not sales; in the future, more and more people will pursue rental goods rather than own goods. This is called not holding life.
Not holding life is the trend of the times.
So, what about the future of mobility cars? It is also in line with this general trend.
Here, we want to clarify a long-misunderstood concept:
Taxi and car hire are two different industries. wrong! Taxi is a rental car. Taxis are also rental cars, but they are rental cars with drivers. With the advent of unmanned driving, whether it is a taxi or a car rental, there is no longer a driver, and a taxi is a car rental. Today, a little different is that those who do taxis do not have to manage the car, the cars are managed by the drivers themselves, but those who rent a car have to manage the car; in the future, they all rent a car and have to manage the car. Therefore, today dry car rental has a competitive advantage over dry taxi in the future.
So today, we're talking about getting around, which includes both buying a car and renting a car. What about the future?
The future of mobility cars, Car as a Service, also known as CaaS; in the future, people will rent on-demand on a subscription basis. This is the future of mobility cars.
In the future, the travel scenario will not change, or between home, office and destination; but the travel demand will upgrade, from the pursuit of ownership to the pursuit of use; with the development of technology; CaaS model, that is, subscription-based on-demand car rental, will replace most of the existing travel modes to achieve true shared travel.
Just like we use mobile phone bills and data packages today, in the future, you only need to have a Wukong account, have a cost budget every month, such as three thousand, five thousand, eight thousand or ten thousand, whether local or off-site, short-term or long-term, anytime, anywhere, on-demand car is good, and all the troubles of the car, do not have to worry about you, there is a platform like Wukong to take care of.
In the future, cars will be produced mainly for leasing, not sales, and cars will no longer be commodity attributes, but service attributes.
In the future, people will generally buy car rental services, without having to buy a car. This is Goku's faith!
Whenever I give training to new employees, I will tell new employees: all of Goku's efforts are going to this faith, if you don't believe it, don't join Goku. Today, I also want to tell the market out loud that this is Goku's belief, and Goku will prove it to everyone with practice. Let's wait and see.
In the future, what will be the impact of car rental services becoming the first choice?
If everyone chooses to rent a car and no longer buy a car, will the car ownership still need 400 million? Is 100 million vehicles enough? Do we need 25 million new car sales each year? Is 10 million vehicles enough?
If everyone chooses to rent a car instead of buying a car, will there still be 500 million parking spaces? According to the experience of the international mature market, every time you buy a car, you need an average of 1 fixed parking space plus 0.3 public parking spaces, we all know that our car ownership has exceeded the 300 million mark, and more than 20 million new car sales are added every year, if not controlled, we may reach 400 million vehicles in the future, which requires more than 500 million parking spaces, each parking space covers an average area of 15 square meters, and needs to occupy 7.5 billion square meters of land area. What I want you to think about is: If in the future we all choose to rent a car anytime, anywhere, will we need so many parking spaces in each office building, each community, and each park? How much social resources will be saved?
Let's go one step further: if the production, sales and ownership of vehicles can be greatly reduced through car rental, and if the construction of parking spaces can be greatly reduced through car rental, how much carbon emissions will be reduced? To be sure, this emission reduction effect is huge, how big it is, we do not know yet, we are docking research with national professional institutions for carbon emission reduction, waiting for the future to be revealed to you.
In short, we believe that vigorously promoting car rental services and advocating not holding a life should become one of the most effective measures to build a resource-saving society, and it is also one of the most effective measures for carbon peaking and carbon neutrality, and then superimposing the promotion of new energy vehicles is a double emission reduction effect.
By the way, Mr. Zhang of the Haval brand, and the old irons of other car manufacturers, we don't need to worry, don't be nervous, because the demand for travel cars will not be reduced, but the efficiency of the supply side will jump sharply, resulting in a change in demand satisfaction from ownership to leasing, and car rental services also need a lot of fleet support! In the future, everyone will not buy a car and rent a car, and car manufacturers can supply cars to a platform like Goku! In addition, car manufacturers can also invest in car rental service platforms! Isn't the value of the automotive industry because people have demand for travel cars? Shouldn't the future of automobile manufacturers be to provide vehicles for travel service providers?
I have a judgment: in the next 8 years, by 2030, automobile manufacturers and travel service providers will be deeply integrated, not only in industrial cooperation, but also in the equity structure, you will have me, I have you, and work together to travel car services. Today, the strategic integration of our Wukong and Haval brands is a beginning.
The future is not far away, the future is already coming.
For example, today's Generation Z, Gen Z refers to the group born between 95-14 years, Gen Z has become a pioneer group that does not hold a life.
Generation Z started a business, did not buy office equipment and directly rented a workplace; Generation Z cultivated land, did not buy tractors to rent tractors; Generation Z played games, did not buy accounts to rent accounts; Generation Z went home to pay their parents for the Spring Festival, rented a boyfriend or girlfriend; Generation Z pandas, continuing panda leasing diplomacy, is this a stem? yes. ......
Generation Z is the generation that is not short of materials, what houses, cars, the family has long owned, what food and clothing, never lack, Generation Z, do not want to be burdened by materials.
Generation Z, rejecting bondage, yearning for freedom.
Generation Z, really, very wave!
The children of Our company Generation Z told me that renting a car can experience the happiness of "Aquaman"! Yes, they say, what a joyful experience to change your favorite car every day and try it out!
As a post-70s generation, I think I am quite traditional and upright, including dressed like this today. But I was surprised to find that, I don't know why, the proportion of Gen Z users after Goku 95 has reached 51%, and it is terrible that this proportion is still increasing year by year. I let our big data center adjust the age data of our users, we look at the following two shadow areas of this chart: green represents the proportion of users aged 22-27, that is, born in 95-00 years, blue represents the proportion of users under 22 years old, that is, after 00, you can see that Wukong's user group under 27 years old has soared from 5% in 17 years to 51% this year, and expanded 10 times in 5 years. This year's 27 years old corresponds to the birth of 95 years, so the proportion of users after 95 has reached 51% now. In fact, the proportion of our post-90s users has reached 74%, the proportion of post-85 users has reached 88%, and the proportion of post-80s users has reached 95%. According to our research, our users are more than 10 years younger than the average friend. This shows that Goku has won more love from young users in the past. It was a big surprise for me! I've been worried that I'm getting older, it turns out that I'm with the post-95s, young is good!
So, today, we are here to solemnly announce that Goku intends to be the "wave" partner of Gen Z and lead the life of not holding! Goku will align with Gen Z's preferences from brand, product, vision, IP, operations, events, services, and even values. Goku, himself, is the image representative of Generation Z.
Goku, uninhibited indulgence in love of freedom!
After a while, Zhu Xu, the CMO recognized by Wukong as the most wave, will share it with you in detail, and also prepare an absolute surprise for everyone, please wait and see.
This year is the 8th year of Goku's entrepreneurship, 8 years is not short, the War of Resistance is over. In the past 8 years, the field of car rental travel can be said to be one of the most competitive industries in China, countless capital influx, countless startups surging up, from private car sharing, to time-sharing car sharing, but also accompanied by the fall of countless startups, today, there is not much left. Goku has also experienced several life-and-death trials, including internal and external troubles, and the exhaustion of funds, but we are lucky to survive and live better and better.
Here, I would also like to briefly report to you a little bit of what we have achieved in the past 8 years:
Our core main business, Wukong car rental aggregation platform, service coverage has exceeded 460 cities, service outlets of more than 80,000, more than 200,000 rentable vehicles, more than 6,000 kinds of optional models, our products have used more than 22 million users.
Wukong Car Rental is already the largest independent Internet car rental aggregation platform in China.
In addition, at the beginning of the 20th year, we also won the exclusive brand authorization of the global car rental No1 brand Avis in the mainland, we used Avis, opened the service of enterprise cars, and has served hundreds of world and domestic top 500 companies such as Apple, Tesla, Schneider, and JD.com.
After the end of the epidemic, we will also use Avis to open up overseas cars and foreign cars in China. As a high-end quality chain car rental brand, Avis is being carried forward in the hands of Wukong.
In addition, we opened a brand new brand in 21 years, Bailong Ma Zhixing, from the maintenance of scooters, in-depth test drives, focusing on car rental services for new energy vehicles. Through The White Dragon Horse Zhixing, Wukong already has nearly 10,000 Volkswagen ID, Tesla, BYD, Wei Xiaoli and other new energy optional fleets on the Platform, of which Volkswagen ID and Tesla have more than 2,000 vehicles.
Wukong is already the largest new energy vehicle operation service platform in China.
In the past 8 years, Wukong has received the trust and support of many users, merchants and partners, including everyone who came to the scene today!
We would also like to thank all users, merchants and partners for their trust and support! Thank you!
About the future of Goku, I would also like to briefly report to you:
First of all, we believe that self-driving travel is the best way to travel. Without the pandemic, the era of global travel for all would have arrived. The most important way for people to travel globally is not to travel in a group, but to travel independently; the best way to travel independently is to travel by car, whether by yourself or by a driver. Therefore, we believe that a road trip is the best way to travel.
In today's China, all walks of life are seriously involved, adults are not easy to live, rather than choose to lie flat, it is better to choose to come to a few more heart-to-heart self-driving trips! The sea and the sky are wide and indulgent, pleasing both the body and the soul! Goku is a car rental car, we are the most important service provider of self-driving travel, so we feel a responsibility to make everyone travel happily.
Therefore, Goku's mission is: to make everyone happy to travel!
Secondly, the country is now vigorously promoting rural revitalization, and many villages, with beautiful scenery and unique local customs, are also the best destinations for self-driving travel. The development of self-driving tours can drive rural revitalization. We also feel an unshirkable responsibility for rural revitalization.
In addition, Goku cuts from car rental, in addition to doing a vertical integration layout in the upstream and downstream of the automobile industry chain, it is also doing a horizontal integration layout in the large travel industry related to eating, living, traveling, shopping and entertainment.
The future of Wukong is not only car rental, but a travel industry service platform.
Today is our best start.
Wukong will horizontally unite Sunac culture | city of dreams, vertically unite the Haval brand, complement each other's industrial advantages, invest together, lead the new ecology of travel, create a dream car life, vigorously develop self-driving tours, help rural revitalization, promote common prosperity, and make everyone happy. We will jointly launch a series of marketing campaigns, please wait and see.
Mission is responsibility, Wukong will also vigorously promote new energy vehicle car rental services, and comprehensively help the national carbon peak and carbon neutrality strategy. The follow-up actions in this regard, please wait and see.
In the past 8 years, Goku has achieved survival and foothold in the car rental industry, in addition to the previous strategic planning,
In the next 8 years, Wukong hopes to be a global travel service platform! Become a Great Sage in the field of travel!
In the next 8 years, Wukong hopes to be the most popular travel service platform for young people!
The next stop, we wave together...