Exciting New Business Concept: Rent Electric Cars through Vending Machines!

Business Trends & Emerging Opportunities Cars & Auto Parts 04.04.2014  0 98 0
Exciting New Business Concept: Rent Electric Cars through Vending Machines!

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Automating the sale of products through vending machines is gaining momentum and expanding on a large scale. Almost everyone has at some point purchased coffee from a coffee vending machine. Many have seen vending machines selling shoe covers in hospitals. There are even vending machines selling fresh flowers. However, the vending machines invented by the Chinese are truly impressive! The uniqueness of this Chinese invention is astonishing in several aspects. But let's break it down...

Does Size Matter?

New Business Idea: Rent Electric Cars Through Vending Machines!

There's a joke that in America, everything is bigger, for example, the biggest microchips. So, China decided to stand out with the size of vending machines that may not fit in the lobby of a shopping mall but are highly useful for people. This machine doesn't dispense coffee or snacks; instead, it dispenses... cars!

Electric Cars and Ecology

The brains behind this unique business idea are two major Chinese companies: Geely Automotive and Kandi Technologies Group. The invention is officially titled "Robotic Station for Shared Use of Electric Vehicles." From the name, it is apparent that cars are not sold through these stations but rented out, and they are electric cars.

New Business Idea: Rent Electric Cars Through Vending Machines!

The issue of smog in Chinese megacities has been a concern for a while. Smog primarily arises from numerous coal-powered thermal power plants and the large number of cars on local roads. This is why the Chinese government actively promotes alternative energy sources.

The giant vending machine dispensing cars (located in the ancient Chinese capital of Hangzhou) is another step towards preserving and restoring ecological balance by introducing electric transport. This structure could easily become a local landmark.

New Business Idea: Rent Electric Cars Through Vending Machines!

The concept of shared use or renting is not new and has previously been tested in China with scooters and bicycles.

The rental price for an electric car through a vending garage is 20 yuan per hour (about $3.20). To rent, one needs a driver's license, passport, and likely a deposit (the amount to be confirmed based on the rental duration). Organizers promise future price reductions. Even this current price is considered attractive: it's much cheaper than owning a car.

Kandi plans to build over seven hundred such stations across China in the near future. Construction is progressing rapidly, with two stations already fully operational. Another 18 rental stations are set to open soon.

How Does It Work?

The car dispensing station looks like a massive glass cabinet, similar to any other vending machine displaying goods. After selecting a car through a special terminal, swiping a credit card through a card reader, the customer watches as the car shelf moves, the grab-lift takes the chosen car, and the happy renter gets into their electric car at the boarding area. The electric car's maximum speed is 80 km/h, suitable for city driving. The battery charge lasts around 120 kilometers on average.

New Business Idea: Rent Electric Cars Through Vending Machines!

According to optimistic business analysts, the "Kandi scheme" (as it's called in the media) will likely be adopted worldwide in the near future. This may be thanks to the efforts of eco-enthusiasts drawing attention to electric cars.

Describing the transparent garage with automatic car dispensing as a car vending machine is likely just a marketing tactic. However, in Kandi's case, it seems to be quite successful!

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04.04.2014  0 98 0
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