SAIC Motors enters online car-hailing business, "Xiangdao Travel" starts trial operation on November 18

According to a report by the Economic Voice "World Finance" on November 14, the fiercely competitive online car-hailing market has welcomed a new member. Shanghai Automotive Group Co., Ltd. recently announced its entry into the online car-hailing business. The online car-hailing platform "Xiangdao Travel" launched by SAIC Motor will be put into trial operation on November 18. As the largest automobile company in China in terms of production and sales, can SAIC break the competitive landscape dominated by Didi in the current rapidly developing online car-hailing market?

After half a year of preparation, rumors came true and "Xiangdao Travel" was launched

In fact, as early as May this year, there was news that SAIC Motor would enter the online car-hailing market. This time, SAIC Motor launched a mobile travel strategic brand "Xiangdao Travel" which will provide a comprehensive solution for online car-hailing business including technology platform, operating vehicles, maintenance, financial credit, professional insurance, etc. Relevant information shows that "Xiangdao Travel" is positioned for mid-to-high-end customer groups and focuses on the mid-to-high-end car service market. The App was developed by Shanghai Sai Ke Travel Technology Service Co., Ltd., which is an Internet car-hailing service platform invested and established by SAIC Motor.

Cui Dongshu, secretary general of the National Passenger Vehicle Market Information Joint Conference, believes that entering the online car-hailing business is not only part of SAIC's transformation goals, but will also help SAIC achieve its transformation layout in other directions. Cui Dongshu said: "We believe that SAIC's development is in line with the changing trends of automobile products and the industry. From the perspective of automobile products, they are increasingly becoming electric, intelligent and shared products. A lot of information may need to be consumed, and manufacturers need to grasp more information from the demand side."

For SAIC Motor, entering the online car-hailing market will undoubtedly help the company transform towards new energy and resolve the company's growing new energy vehicle production capacity. The official introduction of the "Xiangdao Travel" App also shows that the platform will use "self-operated new energy vehicles" to provide services. Cui Dongshu said that SAIC's technological advantages in smart travel and new energy products will enable them to have certain competitiveness. Cui Dongshu said: "SAIC's products are currently becoming more and more electrified and intelligent, which in itself meets the development needs of the online car-hailing market. Therefore, with the rapid growth of new energy vehicles, SAIC's expansion in the online car-hailing market has product technology and a relatively good market demand foundation."

Shortcomings in "soft power" need to be addressed

Despite its strong financial strength and production and sales capabilities, SAIC still faces some challenges as a "newcomer" in the online car-hailing industry. These challenges come from both traffic and soft power such as publicity and marketing.

In terms of traffic, Didi has accumulated a large amount of user data due to its deep involvement in the online car-hailing field for many years. Data shows that Didi's products have reached 550 million users and more than 31 million car owners and drivers. Compared with other online car-hailing platforms including Didi, SAIC Group still has a large gap in this regard. In terms of marketing and publicity, although it can use price means to attract users, SAIC Group still needs to apply for online car-hailing licenses in various cities, and it is not yet known where "Xiangdao Travel" can be implemented.

In addition, urban transportation expert Xu Kangming believes that the current implementation of online car-hailing regulations is not good, and illegal vehicles are rampant to seize market share, which will have an impact on compliant operating companies such as SAIC. Xu Kangming said that in terms of legality and compliance, although the policy has been issued for two years, there are still relatively large contradictions in the process of legality and compliance. Therefore, some new companies also face relatively large challenges.

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.