The highly anticipated shared car platform is facing another crisis. A few days ago, sources reported that LeTV's shared car brand, Zero Pai Leu, may have stopped operating in Beijing. The app showed no available cars for several days, and calls to the 400 customer service line went unanswered. Let’s take a closer look at this issue with our car electronics editor.
A recent investigation revealed that most of the outlets listed on the app currently show no vehicles available. However, some offline rental points still have cars under the platform. On the evening of July 20th, three rental points near the South Fourth Ring Road in Beijing showed one car available. This suggests that while the app might be malfunctioning or outdated, the physical presence of vehicles still exists in certain locations.
Zero Pai Leu was the second major shared car brand after Car Rental Friends. The shared car market, known for its heavy asset and operational model, has long struggled with low usage, insufficient capital, and lack of profitability. The current crisis has cast a shadow over the entire industry, raising questions about whether it can become the next big player in the market after ride-hailing and shared bikes.
Suspicion of Suspension
LeTV’s ongoing financial difficulties have also affected its shared car brand, Zero Pai Leu. Reports suggest that only a few of the 12 rental points in Beijing are still active, and even those show no available cars. According to customer service, “some vehicles are undergoing annual inspections and maintenance.†However, reporters found two Zero Pai cars in a parking lot, and one had its logo blurred. Similar situations were observed at other rental points, where cars were present but not visible on the app.
On July 19th, a reporter visited a Zero Pai Leu rental point at Kuntai Mall’s Walmart store. Although the app showed no available cars, there were several Zero Pai cars in the parking lot. At another location, a Zero Pai car was found with an unclear logo. Parking lot staff mentioned that these cars had been sitting for a long time, and the initial deployment was around three vehicles per location, with low usage rates. “Other shared car brands are more popular here,†they added.
Later, the reporter tried to log into the Zero Pai Leu app and encountered issues with receiving verification codes. After contacting customer service via WeChat, the response was vague, stating network problems caused delays. When asked why the app showed no cars, the customer service suggested calling them directly. However, multiple attempts to reach customer support failed.
Despite the app’s issues, on July 20th, three rental points outside the South Fourth Ring Road in Beijing showed one car available. This inconsistency between the app and real-world availability raises concerns about the platform’s reliability.
Full Contraction
Rumors of Zero Pai Leu’s suspension have sparked renewed concern in the shared car market. This marks the second major crisis in the industry since the collapse of Car Rental Friends. Many small players have struggled due to high maintenance costs, parking fees, and vehicle acquisition expenses. Industry experts believe that without proper funding and management, such platforms cannot sustain long-term operations.
According to the reporter’s understanding, Zero Pai Leu is part of LeEco Holdings (Beijing) Co., Ltd. It was launched in early 2016 and received a RMB 2 billion investment from its parent company in May 2016. By September 2016, it had nearly 70 outlets and 300 vehicles in Beijing, covering major transportation hubs and commercial centers. The company aimed to expand to 3,000 vehicles across seven cities by the end of 2016, including 500 in Beijing. However, the app currently only shows operation in Beijing, with over 20 rental points, most of which show no available cars.
Multiple Pressures
Since the rise of shared cars, the business model has been questioned. The heavy asset and operational model has always been a challenge. Compared to ride-hailing and shared bikes, the shared car sector has not attracted as much attention from investors. Even after regulatory guidelines were issued, capital seems hesitant to fully enter the market.
An executive from a shared car brand, who preferred to remain anonymous, said that both Car Rental Friends and Zero Pai Leu were atypical cases. The former collapsed during the capital transition phase, while the latter relied heavily on LeTV. The current crisis is specific to each case and does not reflect the entire industry trend. While challenges like imperfect credit systems, poor parking conditions, and incomplete charging infrastructure remain, national policies continue to support shared mobility, and the industry is moving in the right direction.
Professor Zhu Dajian from Tongji University pointed out that small enterprises in the shared car industry face challenges such as limited funds and resources, making survival difficult. Large companies like BAIC and SAIC have strong financial backing and resources, allowing them to deploy large numbers of vehicles to meet consumer demand and drive their own growth. However, smaller players struggle with high costs and lack of parking space, making it even harder to survive if the capital chain breaks.
In summary, LeTV’s shared car platform appears to be experiencing a crisis. If you want to stay updated on this and other related topics, make sure to follow our coverage for more detailed and timely information.
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