Trip.com planning to grow care rental business by buying Car Inc.
The ties between Luckin Coffee and the car rental platform Car Inc. have greatly affected the latter’s share performance, which has plunged over 30% since April 1st when the coffee chain admitted its sales fraud. However, the situation provides Trip.com with an opportunity to engage in talks to buy the company and thus to expand its car rental business. The acquisition will probably end up with a merger with eHi, the existing car rental partner of Trip.com. Tourism is seeing a gradual and steady recovery in China since the pandemic shows signs of levelling off in the country. Experts are expecting a growth in car rental industry since self-driving is widely considered a safer means of travelling compared to public transportation.