SAIC will officially launch its online car-hailing business, and its net profit in the first half of the year also soared by 18.982 billion yuan

On August 29, at a media briefing held by the State-owned Assets Supervision and Administration Commission, Zhou Langhui, vice president of Shanghai Automotive Industry Corporation Limited, revealed that "we are also considering entering the online car-hailing market."

SAIC Group will build a mobile travel service platform based on data sharing, aiming at smart travel for people, convenient services for cars, and efficient flow of goods, and accelerate the creation of a large mobile travel service platform and ecosystem.

According to Zhou Langhui, SAIC Motor has increased the incentive mechanism for new businesses such as Internet cars. He said that with the support of Shanghai State-owned Assets Supervision and Administration Commission, and referring to the relevant provisions of Shanghai Zhangjiang Measures, the core teams of innovative businesses such as Global Car Sharing, Zebra Network (Internet car R&D), and Chexiangjia will be given equity and option incentive plans; an incentive fund will be set up for the new energy R&D team, and a virtual equity plan will be implemented; a total of 1 billion yuan of incentive funds will be set up for technology development and business model innovation talents, and special rewards will be given.

Since 2015, the online car-hailing industry has developed rapidly, and the market size has exceeded 100 billion yuan. According to relevant data, the overall scale of China's travel market can reach 2.8 billion times/day, and the potential market demand for online car-hailing travel is about 90 million times/day. It is expected that by 2020, the total market size of online car-hailing will reach 513 billion yuan.

According to the 2017 Online Car-hailing Research Report, Didi Chuxing ranked first among online car-hailing app platforms with a penetration rate of 58.6% in 2017, far exceeding other online car-hailing platforms. Although online car-hailing platforms such as Shouqi Car-hailing, Shenzhou Car-hailing, Yidao, and Caocao Car-hailing are still investing heavily in the competition, these platforms have only taken less than 10% of the market share (Shouqi Car-hailing 2.6%, Shenzhou Car-hailing 2.2%, Yidao 1.6%, and Caocao Car-hailing 1.3%).

Among domestic automakers, SAIC is not the only one to enter the online car-hailing business. In 2015, Geely Group invested in the establishment of an Internet + new energy travel service platform - Hangzhou Youxing Technology Co., Ltd. (i.e. Caocao Special Car).

Through Cao Cao Private Car, Geely can, on the one hand, increase the sales of its new energy vehicle models; on the other hand, by collecting big data on user usage habits and providing specific data to Geely's R&D department, it will be beneficial for Geely to launch new products and prepare for future driverless technology.

For SAIC, entering the online car-hailing market can also bring multiple benefits. In addition to achieving profits by promoting sales through leasing, it can also obtain big data through direct contact with consumers, making more direct judgments on market demand and accumulating data for future businesses such as autonomous driving.

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.