Sharing Economy In China Gets A Lift With $47M For Car Rental Rides
The sharing economy in China takes another step as Atzuche, a Shanghai-based peer-to peer (P2P) car rental startup with a large fleet of luxury cars, has raised a $47 million Series B from several Chinese investors including China Pacific Insurance, Ivy Capital, Hearst Ventures’ VC arm, Matrix Partners and Ceyuan Ventures. Matrix had previously led a $10 million Series A round in the startup.
Founded in 2013, Atzuche gives vehicle owners the opportunity to earn money by renting out their car to pre-screened customers on a flexible basis. The site currently claims more than 100,000 registered vehicles and more than 10,000 car models including various Ferraris, BMWs, Audis and Mercedes. Thousands of daily transactions are reported in 12 cities, of which 60% are in Shanghai and a growing number are in Beijing.
Atzuche recently launched a 24-hour pick-up service in six Chinese cities, including Shenzhen, Nanjing and Hangzhou. The service allows for clients to place orders online, with the car delivered directly from owners to users.
Plans are to use the new resources to expand services, and enter related markets such as car insurance (offered to users on a customized time period instead of as a flat fee) and related conferences. Notably, its partnership with China Pacific will involve the insurance company promoting Atzuche’s services to its own clients.
The P2P car rental space in China includes several other key players, each backed by major investors. Notably, Dida Pinche is funded by CRCI and IDG Capital Partners; Tiantian Yongche counts Baidu and Sequoia among its backers; and Baojia.com is backed by Ping An Ventures and Qiming Venture Partners.
