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Reporter of China Business Network: Chen Hao Editor of China Business Network: Yang Xia

For many old communities, installing elevators often involves many difficulties, and raising funds is an unavoidable hurdle.

Recently, with the official commissioning of two newly installed elevators, Dongle Dormitory in Luohu, Shenzhen, has bid farewell to the "climbing stairs era". Different from the installation of elevators in old residential areas in the past, Dongle Dormitory adopts the "shared elevator" model: residents do not need to raise funds for the initial installation of the elevator. After the installation, residents are charged a fee ranging from 0.2 yuan to 0.85 yuan each time they take the elevator.

The two elevators in Dongle Dormitory were built by Shenzhou Tongli Elevator (Shenzhen) Co., Ltd. (hereinafter referred to as Shenzhou Tongli). Peng Wei, the general manager of the company, said in a telephone interview with the reporter of the Daily Economic News that the residents of the community are very supportive of the "shared elevator" model. The construction cost of an elevator is usually 650,000 yuan, and the government will provide a subsidy of more than 300,000 yuan, which is also the basis for the establishment of this model. "We are not completely sharing the concept. The ownership of the elevator belongs to half of the company and half to the owner, rather than the residents only having the right to use the elevator."

Community launches "shared elevator"

Fang Sinian, deputy secretary of the Xinnan Community Party Committee of Nanhu Street, Luohu District, Shenzhen, told the Daily Economic News reporter that the Dongle dormitory was built in the 1980s and has two units, each with seven floors. There are currently 24 households and about 170 residents. The "Several Measures for Promoting Large-Scale Equipment Renewal in Luohu District" issued by the Luohu District Development and Reform Bureau mentioned that it supports the installation of elevators in existing residential buildings. For qualified unit-type residential buildings, the elevator installation projects that have completed special joint acceptance before December 31, 2025 will be divided into grades according to the number of floors of the residential building to be installed, and a subsidy of up to 350,000 yuan will be given for each elevator.

Fang Si Nian said that some old residential areas are mostly inhabited by the elderly. There are 45 multi-story residential buildings in Nanhu Street that have no elevators installed, and the owners have a strong demand for installing elevators. "For example, in Dongle Dormitory, there are several elderly people with inconvenient legs and feet. They came to the community with crutches to make demands and asked the community to promote the installation of elevators in the community." Fang Si Nian said that if an elevator is installed, in addition to government subsidies, each household will have to pay an average of 30,000 yuan, and residents on the highest floors will have to pay 100,000 yuan. In many cases, the installation of elevators will not be achieved because of the inability to reach an agreement on the funding issue.

Fang Si Nian mentioned that after the community learned that a residential area in Nanshan District had developed a "shared elevator" model, it decided to introduce the model, and community residents' representatives voted unanimously in favor of the plan.

"Shared elevators" draw on the concept of sharing economy, which means that the construction and maintenance of elevators are fully invested by third-party institutions. Residents do not have to bear the high cost of purchasing and installing elevators at one time, but use the elevators on a paid basis. This model breaks through the financial barriers of traditional elevator installation. As early as 2021, a community in Hangzhou launched a "public transportation elevator", and community residents pay by the number of times they take the elevator.

"Some residents in the community said that paying for the elevator on a per-trip basis would only cost them 600 to 700 yuan a year, which is better than paying tens of thousands of yuan at one time." Fang Si Nian said that residents have a wide range of choices. They can pay when they want to take the elevator and take the stairs when they don't want to pay.

On the afternoon of July 24, the reporter came to Dongle Dormitory and learned that two newly installed elevators in the community have been officially put into use. The reporter saw that the elevator was no different from other elevators, except that inside the elevator, in addition to a surveillance camera, there was also a camera specifically used for AI (artificial intelligence) recognition. In addition, cameras from the elevator company are also installed in the corridor. It is reported that after residents enter the elevator, the elevator will use AI recognition and other technologies to identify the residents based on information such as the household number and face, and finally automatically deduct the fee through the App.

Who owns the elevator?

On August 1, the two elevators in Dongle Dormitory will start charging, with a single ride fee ranging from 0.2 yuan to 0.85 yuan depending on the floor. The contract stipulates that Shenzhou Tongli has the right to charge for the elevators for 15 years, and also has rights and interests including elevator advertising revenue; at the same time, the maintenance and other costs involved in the elevators will also be borne by Shenzhou Tongli.

Peng Wei told reporters that installing an elevator generally involves two parts of fees, one is third-party fees such as pipe network modification, and the other is the cost of elevator construction. "Third-party charges are highly uncertain because they involve hidden projects. We will pre-collect a certain amount of fees from customers for each elevator. If it is not fully used, it will be returned to the owner. We will make up the shortfall ourselves. The construction cost of an elevator, if it is not specially customized, is usually around 650,000 yuan."

"The pipe network of Dongle Dormitory is complicated, and the renovation cost exceeded the budget. The company has borne the part that exceeded the budget." Peng Wei said that Dongle Dormitory has 7 floors and the government subsidy is more than 300,000 yuan. The company plans to recover the other 300,000 yuan in the form of elevator fees within 15 years, and at the same time exchange it for 15 years of elevator advertising operation rights to share the operating risks. He said that after the completion and acceptance of the elevator, the company can submit a subsidy application to the government.

Peng Wei said that the company needs to provide owners with full life cycle services, so the elevator fee is relatively low. This fee also includes subsequent repairs, maintenance, insurance, electricity, cleaning and other expenses.

"Our concept is not completely about sharing. This model is based on government subsidies. After the elevator is built, the property rights are half owned by the owner and half by the company, rather than the residents only having the right to use the elevator." Peng Wei also said that the company is currently mainly promoting its products in first-tier cities such as Beijing, Shanghai, Guangzhou and Shenzhen, and the installed elevators come from the company's own factories.

The reporter learned from the Nanhu Sub-district Office of Luohu District that, in the future, the Nanhu Sub-district Office will continue to follow up on the subsidy application and elevator commissioning and maintenance work of Dongle Dormitory, and actively explore other eligible communities in the area where owners are willing to install elevators, replicate relevant successful experiences, and strive to form contiguous areas for the installation of elevators.

Daily Economic News