Business

Rental car companies struggling to keep afloat

June 24, 2020 6:35 am

The rental-car companies in the country are struggling to survive the coronavirus pandemic’s catastrophic blow to their business. [File Photo]

The rental-car companies in the country are struggling to survive the coronavirus pandemic’s catastrophic blow to their business.

The rental car companies are not only dealing with the ripple effects caused by the pandemic but are also facing challenges from illegal operations.

Fiji Rental Car Association President Mohammed Shafik says in order to stay in the business, the rental car companies have been forced to forgo bonds on rented vehicles.

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“Operators like from medium to the small range they are giving rentals without any bond, bigger companies have reduced the bond and few companies are now like if you hire for three days you get one day free and smaller companies are going half the price like $20 or $30 a day.”

Mohammed Shafik claims illegal operation is also affecting their business.

“Just because of this COVID-19, plenty people have been laid off and now they making good money easy money on these vehicles, they just giving them their private vehicles their family members or others and they get paid”.

Land Transport Authority Chief Executive Samuel Simpson says their operation is underway.

“I would that probably has been an increase in that activity however what I can tell you is that the LTA enforcement activity has not been scaled back. We are in the process and have been for the last several weeks with a joint operation with the Fiji Police Force and that’s been very very successful”.

The Fiji Rental Car Association is calling on Fijians to assist their local businesses and to report illegal operations as the legitimate businesses are losing out.