Rent-a-car sector teetering on the brink

Owners park their cars on roadsides, creating logjams

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KARACHI:

The bustling metropolitan city faces several challenges, and one major issue is the unregulated rent-a-car industry. Business owners often park their cars on major roads, causing frequent traffic snarls. The lack of a formal government policy to regulate car rentals and fares has further aggravated the situation, leading to inconsistent fares and inconvenience for the public.

The fares for rented vehicles have witnessed steep rise in recent years. This increase is attributed to the rising prices of petroleum products, vehicle maintenance, and spare parts.

Naveed Ahmed, a resident of Nazimabad, spoke about his experience of hiring a 25-seater AC coaster for a family picnic to Hawk's Bay beach. "Last year, the rent was Rs28,000, but this year it's gone up to Rs34,000," he lamented, citing an Rs8,000-10,000 hike in just one year.

Similarly, Shazia Maryam, a housewife from Garden, said that her family paid Rs21,000 to rent a car for a trip to Keenjhar Lake after negotiating down from the initial demand of Rs25,000. She stressed the need for a government policy to standardise rental fares, similar to how public transport fares are determined.

Nabeel Shahid, a student from PIB Colony, bemoaned the impact of inflation on family events. "We hired a 16-seater AC vehicle for Rs20,000 for a wedding in Korangi. Due to rising costs, middle-class families now think twice before attending events together, as these extra expenses are becoming unaffordable."

Owners in the rent-a-car business are also struggling. Irfan Shaikh, a rental operator, said that many families invest in commercial vehicles and lease them to rental businesses under agreements where the earnings are split - 60% for the vehicle owner, 30% for the operator, and 10% for the driver. However, parking remains a major issue.

"Our vehicles are often parked outside shops, leading to complaints of traffic congestion. Traffic Police sometimes impound our vehicles, assuming they are commercial," he added.

Mohsin Raza, another rental operator, admitted the lack of regulation in the industry. "The Sindh Transport Department has not introduced any mechanism for determining fares. Over the past two years, vehicle rents have increased by 25% to 30% due to rising expenses, which has resulted in a 30% to 35% decline in our business. Many vehicle owners now lease their vehicles to private companies instead of relying on rentals."

Drivers in the industry, like Ashfaq Anjum, face their own challenges. "We earn Rs20,000 to Rs25,000 per month, with an additional commission of Rs1,000 per trip. If a client tips us, that's a bonus. Beyond this, we receive no benefits or incentives," he told The Express Tribune.

The Sindh Transport Department has acknowledged the lack of regulation in the rent-a-car business. Officials have promised to formulate a policy to register vehicle rental businesses and standardise fares.