The Scale Of Shared Travel Market Is Expanding Rapidly: Profit "Curse" Has Not Yet Been Broken.

"Sharing travel in China began to explore in 2012, and a short five or six years has become a hot spot for the global travel industry innovation and development." On October 25th, Chen Qingtai, chairman of the China electric vehicle 100 person association, pointed out at the opening ceremony of the 2019 global future travel conference.

At the same time, Chen Qingtai also pointed out that as a new thing, sharing travel is a gigantic and complex social project. It is still in the process of rapid development, and there are many problems that need to be studied and solved in terms of business mode, operation mode, product technology of service, and government supervision.

The most important thing is that there is still no mature business mode from sharing travel to the present. Whether it's net car, time sharing or shared car, it is difficult for different companies to escape unprofitable fate in all areas that have been tested in the past few years.

The share travel market is growing rapidly. Public data show that in 2018, only a drop of taxi in the more than 400 cities across the country to provide users with about 10000000000 travel services, an average of about 30000000 times a day, at present still maintained an annual two digit growth.

But in 2018, global share travel giant enterprises were almost in a mess. Data show that in 2018, Uber suffered a huge loss of 1 billion 800 million US dollars, a drop in losses of over 10 billion yuan, and Grab, the largest mobile travel company in Southeast Asia, at the same time.

However, shared travel is still regarded as a blue ocean with huge potential and space, especially in China. According to PWC, in 2030, the market share of the United States, Europe and China will reach 1 trillion and 500 billion US dollars (about 100368 yuan), with an average annual compound growth rate (2017~2030 years) of about 24%, of which China's share travel market is US $564 billion (about 37738 yuan), with an average annual growth rate of 32%.

Traditional host plant "horse race enclosure"

Global giants and domestic mainstream car companies are almost all involved in the competition of shared travel. The most extensive cooperation in China is the joint venture of T3 from FAW, Dongfeng, Changan, Ali, Suning and Tencent.

"At present, the automobile market is nearly saturated. As the automobile market changes from incremental competition to stock competition, the share of the rear service market will increase to 60% of the whole automobile industry chain market in 2025, compared with the current growth rate of 6 times. At present, the days of car manufacturers and suppliers making money by selling cars and selling spare parts will be gone forever. " On October 25th, Great Wall Motor Company Secretary of the Party committee and Zhang Wenhui, chairman of Europe travel, said at 2019 global future travel conference that entering the market after travel is the inevitable choice of the traditional host plant.

According to Peng Bo, a global director of McKinsey, by the year 2030, the core automotive related products, including spare parts, systems, vehicles and markets, will be weak in terms of the growth of automobile products and will remain at the scale of 35000 billion -36000 billion dollars. Travel and business services will double the total market to 7 trillion US dollars by 2030.

For the traditional mainframe factory, under the background of the continuous decline of car sales, only transformation is the capital to live. The concept of driverless, Internet of vehicles, 5G and so on has been gradually heated up. The sales mode of the automobile market may undergo a fundamental change. All crisis conscious car companies should take precautions. It is also an inevitable choice to rely on the traditional automobile manufacturing business to transform to the travel service providers. Heavy assets and heavy operation are the advantages of the traditional host plant.

But how to efficiently operate vehicles, how to effectively train users' habits and how to provide excellent travel experience is still a problem in front of the traditional host plant.

"As a heavy asset, heavy operation or even a large number of labor force integration industry, travel is a low margin industry, if the industry chain is not up and down, it is still more difficult to achieve profitability." In October 25th, T3 tri travel company CEO Cui Da Yong pointed out.

Collaboration and integration of the whole industry

As more and more mainframe plants enter the office, the main body of the change is becoming more and more diverse. From the traditional host plant to the new force of car making, from the Internet giant to the technology enterprise to the energy company, these participants also move from a single competitive relationship to a convergence.

And the change of travel industry is gradually clear in this integration.

For participants, whether they are new entrants like HUAWEI, Tencent, or traditional enterprises such as the Great Wall, Beiqi, FAW and Dongfeng, it must be clear that travel revolution can not be completed by one enterprise or one type of enterprise, but must be the collaboration and integration of the whole industry.

"The advantage of T3 travel lies in the combination of the three big central enterprises and the three largest Internet Co, so there are inherent advantages in getting through the industrial chain upstream and downstream as well as Internet data." Cui Dayong pointed out in his speech that from research and development, manufacturing to later services, T3 travel is working hard to get through the whole chain.

"T3 travel is not a simple way to get into the travel industry. Our goal is to become an operator in the future. This is also our ambition." Cui Da Yong said.

Coincidentally, Dongfeng Motor Co., which invested 20 billion yuan to build Dongfeng, is also committed to opening up its business chain. "If we want to make money in the field of travel, we must link up the relevant industrial chain and make the whole ecological business profitable. From the perspective of travel alone, there is still a lot of pressure on unilaterally profitable businesses, with a drop in market share of 90% and still a loss. If absolute monopoly is a loss, it is necessary for the latecomers to make a profit model in the expansion of other related industries and value chains. In October 26th, Gao Lizhong, general manager of Dongfeng unimpeded, pointed out in an interview with reporters.

In Zhang Wenhui's view, the travel industry has gone from the 1 era of simply burning money, assembling scale and price fixing to the 2 era of quality, efficiency and service. Travel does not mean the displacement of A-B simply, but more importantly, it provides customized services for users in the process of travel service.

At the same time, when the traditional mainframe factory entered the Bureau and sought new business models, the losses in successive years also started to explore new directions.

On the one hand, Dixie hopes to reduce the operating cost and cost level through lean management, and insist on operating at a low gross margin level. On the other hand, it begins to join in the early stage design and production of electric vehicles.

"At present, there are several directions: first, we should vigorously promote the rapid development of new energy vehicles in the field of shared travel, and advocate for customized smart cars for sharing trips; two, we are looking to the future to develop automatic driving technology." Dripping trip vice president, Liu Haijiang, general manager of Automotive Innovation Center, said.

For the future of shared travel, Gao pointed out that vehicle and other heavy assets are the advantages of the host plant. Traffic is the advantage of Internet Co, but in the long run, the host plant is more likely to win in this competition by virtue of the advantages of operation vehicles and ground operation capability.