File picture used for representation
Doha: Most industries reeled from the economic impact of the coronavirus (COVID-19) pandemic. Some have taken longer to bounce back to the pre-COVID-19 days.
For car rental companies, optimism is their best hope as they anticipate a surge in business turnover in the next few months.
With the lockdown instituted to curtail the coronavirus spread, many customers did not need rental cars. Likewise, personal taxi drivers and Uber drivers saw demand for their services reduced, which inadvertently affected vehicles’ demand from rental companies. To break even, some companies reduced rental rates, while others had to give discounts and incentives to attract customers.
Speaking to The Peninsula, a car rental company manager Emmanuel Okorie said the lockdown forced companies to adjust to the market needs. “It was a bit challenging at first dealing with the COVID-19 outbreak and lockdown restrictions,” Emmanuel said.
“We had to find sustainable ways to keep operating. For instance, a KIA Cerato, which was QR80 per day, now goes for QR50. Companies had to work together to reduce the effects all round. KIA (our partner) gave us a grace period, which helped during the early days. Though we still have to pay the deferred months, at least it was a reprieve. As the restrictions are gradually being eased, things are normalising,” he added.
Many people used to be afraid to take a taxi for fear of contracting the virus. With Ehteraz, it made some more comfortable and feel safe. The app features that enable contact-tracing made it easier for drivers and commuters while still taking precautionary measures like wearing a face mask, limiting the number of people in the car at a time.
Meanwhile, Emmanuel, who has been in the rental business for over seven years, believes the lockdown also highlighted areas where companies have to be creative to attract more customers.
“The Limousine business has to move with the times; the prospects are different than it was some years ago due to the country’s rapid development. It used to be just Karwa and Limousine cars, but people now have more options,” he added.
