Shenzhou Renting Past Events

Choose a market with huge growth space, expand quickly and get scale effect, and burn subsidies to attract users. Rui Xing coffee selection mode can be traced back to Shenzhou rentals.

Back in 2007, Lu Zheng Yao's first large listed company, Shenzhou renting, was founded. There were two relatively large players in the market: super car rental and hi car rental. In December of that year, Shenzhou renting only more than 300 vehicles, operating in 11 cities across the country, and by June 2008, it had expanded rapidly to 1000 vehicles, and operated in 20 cities nationwide. The scale has already exceeded that of one hi car rental, ranking second in the whole country.

As a result, Shenzhou car rental competitors on scale, leaving only the most expensive car rental. After that, the story of competition between them is very familiar, similar to the 2015 drops and excellent steps, the 2018 OFO and the two companies launched a wave of subsidy war in the years after 2008.

In August 2010, Liu Erhai of Lenovo holdings decided to invest in Shenzhou rentals. The latter launched a price war with a price range of 30-50%. On the one hand, they took advantage of price cuts to grab tourists. On the one hand, they bought big cars. At the end of 2011, the number of cars was rushed to 26000. In 2012, Li Hui, President of Huaping Capital Asia Pacific area, invested $200 million to help Shenzhou car hire expand to 45000 vehicles.

Until the 2013 Hertz investment strategy, Shenzhou car rental merged with Hertz's all rentals business in China, firmly occupied the first place in the market, and successfully achieved listing in 2014.

According to the short selling mechanism, in May 2015, the price of Shenzhou car rental rose from HK $8.5 to HK $20 / share at IPO, and Lu Zhengyao sold the shares to UCAR Technology (excellent vehicle technology), and then cash HK $3 billion 400 million. In addition, investors such as Hertz, Lenovo and Huaping investment also sell a large number of shares at the same time. From June 2015 to March 2016, Lu Zheng Yao and other Shenzhou renting PRE-IPO investors sold 42% of Shenzhou car rental stock to 1 billion 600 million dollars in just 9 months.

With the departure of Lu Zhengyao and other institutional investors, the performance of Shenzhou renting began to decline in 2016, and the adjusted net profit decreased by 8% and 25% respectively in 2016 and 2017. Share prices also lingered around 6 or 7 Hong Kong dollars in the next four years.

It is worth mentioning that this model is not going all the way. In the pioneering process of Shenzhou department after 2015, there was a failure that Lu Zhengyao had hoped for. This failure also stimulated Lu Zhengyao to change the track and eventually led to the birth of Rui Xing coffee.

In 2016, shortly after the creation of the Shenzhou excellent car, Lu Zheng Yao invested more than 10 billion yuan to build an auto business platform. This vision attracted Alibaba to invest 2 billion 680 million yuan into the Bureau. The two sides said they would carry out all-round strategic cooperation in the field of "Internet + automobile".

In the April press conference, Shenzhou excellent car announced that it would build more than 500 stores and similar stores in the 4S area nationwide before June 2017, covering all parts of the country. At the same time, it is estimated that the sales volume of the e-commerce platform including new and used cars in 2017 will reach 60-80 units.

At the beginning of 2017, Lu Zheng Yao held a press conference to announce that the Shenzhou auto buying business has begun to take shape, and the network coverage has been completed in 120 prefecture level cities nationwide.

But after that news conference, Lu Zheng Yao did not mention Shenzhou to buy a car in public. This business was gradually quiet and disappeared in people's vision. "Shenzhou buying a car is a failure from the result." A person close to Shenzhou excellent car told reporters, "the traditional 4S shop system is too strong, and this mode will not be pushed to half."

After that, the profits of Shenzhou excellent cars are far from being expected, stock prices have continued to fall, and the development of car rental business to the bottleneck stage is not likely to expand again. Lu Zhengyao is not not looking for the next outlet in the automotive industry chain. In June 2017, he announced 2 billion 200 million yuan injection of Xiaopeng motor vehicle to enter the new energy vehicle manufacturing industry, but the new car from R & D to production is too long, and the industry track is too crowded, so it is difficult to achieve rapid growth in the past path.

At the end of 2017, Shenzhou excellent vehicle COO Qian Zhi Ya officially left the office to establish Rui Xing coffee, but her decision was not a personal adventure: this venture not only got Lu Zhengyao's investment, but also the original technology, operation and other excellent troops of Shenzhou excellent car joined in the process of Rui Xing's entrepreneurship.

In 2019, Rui Xing became the first brand of chain coffee in China with more than 4500 stores, and when people almost believed they would succeed from success to success, Rui finished the whole run with a notice.

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