From The Layout Of Sinking Market To Breaking Through The First Tier Cities, Linkage Cloud Group'S Counter Trend Expansion Road

In recent years, the sharing car industry has fallen from Gaoguang to the bottom. Tigo, which once raised more than 100 million US dollars, ended up in business suspension. Companies such as youyou car, ezzy and Muggle travel have disappeared. In the low period of industry adjustment, the start-up companies growing up in Shenzhen linkage cloud still maintain the trend of expansion.

It is understood that linkage cloud was founded in 2016. In terms of car rental business, the company has four car scenarios: time sharing rental, appointment time sharing lease, current short lease and appointment short lease. It has entered more than 300 cities and owns 100000 vehicles. Liu Jinyu, assistant president of Lianhe cloud group, told reporters of the 21st century economic report that the company is expected to add another 50000 vehicles in 2021 and constantly improve its nationwide layout.

"Our future development goal is to be the first in the industry in terms of vehicle scale and number of users." Liu Jinyu said. At the same time, Lianhe cloud adheres to the business philosophy of "renting cars first and ecological encirclement". The company has built a life circle from car owners to car owners around the whole automobile industry chain, and completed the layout of new auto retail, auto finance, second-hand cars, local life and other business sectors. And the whole car life market is expected to have a scale of one billion.

Steady development brings long-term vitality

"We may not be the fastest company in the industry, but we have been steadily moving forward." Liu Jinyu told reporters of the 21st century economic report that the team witnessed the rise and fall of these peer enterprises. There are three main reasons why linkage cloud can survive.

First of all, unlike some enterprises that only focus on a single consumer group, linkage cloud takes into account the first and second tier markets and the third and fourth tier markets, so as to ensure the smooth operation of car rental business without obvious peaks and troughs. Especially in the 3-5 tier cities, the local car rental consumption toughness is very good, which enables the linkage cloud to quickly obtain a large number of users and more objective cash flow in a short time, laying a solid foundation for the subsequent steady development.

Second, linkage cloud focuses on refined operation to help reduce costs. "We always say that the car rental industry is a heavy asset industry, but in fact it is an operation heavy industry, which requires very high operating capacity." Liu Jinyu said. In the process of vehicle operation, there are costs of insurance, parking, maintenance and other aspects. Linkage cloud hopes to reduce costs through a variety of ways. For example, taking advantage of its own scale advantages, cooperating with parts suppliers for a long time to further reduce maintenance costs; independently developing intelligent scheduling system to improve vehicle use efficiency.

Third, the linkage cloud adheres to the user-centered, forming a high user stickiness. Through car rental app, users can contact online self-service pick-up and return the car in the whole process. The company has as many outlets as possible to make it more convenient and flexible for users to use cars. At the same time, linkage cloud will also provide users with a variety of value-added services, including travel suggestions for destinations when renting cars, gas station discounts, etc. The provision of value-added services helps linkage cloud expand the user base. Liu Jinyu said that at present, the number of members has exceeded 30 million.

Upgrade playing method to break through the first tier cities

When a large number of sharing car start-ups choose to occupy the first tier cities, linkage cloud makes the development strategy of taking the lead in entering the sinking market. It was not until 2018 that linkage cloud began to enter the first tier cities of Guangzhou and Shenzhen. In September this year, linkage cloud officially entered the Beijing market.

From the sinking market to the first tier cities, linkage cloud has also been upgraded. In an interview with the 21st century economic report reporter, Che Xinli, President of Lianhe cloud group, once said that the travel market in the second to fifth tier cities is easily saturated, but in super large cities such as Beijing and Shanghai, the travel demand is greater and the entry cost will be higher. In the case of no license plate reserve, the company hopes to enter the market by sharing car rental with the help of social vehicles.

It is understood that in addition to self owned vehicles, linkage cloud has opened third-party vehicle access. Private car owners and enterprises with vehicles in Beijing can connect their vehicles to the linkage cloud car rental platform to revitalize idle travel resources. For vehicle owners, they will get income through vehicles; for car rental users, it will enhance the freedom of vehicle selection and the convenience of taking and returning vehicles, which is a win-win business exploration.

After 300-300 years of linkage, the cash flow can be basically balanced in the city after three years. In the new first tier and second tier cities (1000 units +), due to the large scale of initial investment, linkage cloud can maintain positive cash flow, but the overall profit has not yet reached.

How long can the first tier companies in Beijing be profitable? Liu Jinyu told the 21st century economic reporter that, first of all, since the operation in Beijing is mainly to develop social vehicles, the cost of linkage cloud investment will not be too high, and the profit of a single city in Beijing is expected to be realized in about a year.

In addition, linkage cloud pays more attention to the influence and consumption power brought by the outward flow of users in first tier cities. "The flow of people from first tier cities to other cities is huge every year, and we value the potential of this. We hope that users will continue to use the service of linkage cloud when they travel to other cities after they contact the linkage cloud in Beijing. " Liu Jinyu said.

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