Rent-a-car-sector that is teeming on the brim

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Karachi:

The busy Metropolitan City faces several challenges and a major problem is the unregulated rent industry. Business owners often park their cars on larger roads, causing frequent traffic Snarls. The lack of a formal government policy to regulate car rental and ticket prices has further aggravated the situation, which has led to inconsistent prices and inconvenience to the public.

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

Naveed Ahmed, resident of Nazimabad, talked about his experience of hiring a 25-person AC-Coaster for a family piknic for Hawk’s Bay Beach. “Last year the rent was RS28,000, but this year it has gone up to RS34,000,” he complained and quoted an RS8,000-10,000 hike in just one year.

Similarly, Shazia Maryam, a housewife from Garden, said her family paid RS21,000 to rent a car for a trip to Keenjhar Lake after negotiating from the original demand of RS25,000. She emphasized the need for a government policy to standardize rental prices, similar to how public transport prices are determined.

Nabeel Shahid, a student from PIB Colony, lamented the effect of inflation on family events. “We hired a 16-person AC vehicle for RS20,000 for a wedding in Korangi. Due to rising costs, middle-class families are now thinking twice before participating in events together as these extra expenses become unaffordable.”

Owners in the Rent-A-Car business are also fighting. Irfan Shaikh, a rental operator, said many families invest in commercial vehicles and rent them to rental companies according to agreements where earnings are shared – 60% for the vehicle owner, 30% for the operator and 10% for the driver. However, parking is still a major problem.

“Our vehicles are often parked outside the stores, leading to complaints about traffic jams. The traffic police sometimes get our vehicles provided they are commercial,” he added.

Mohsin Raza, another rental operator, admitted the lack of regulation in the industry. “SINDH Transport Department has not introduced any mechanism to determine prices. Over the past two years, vehicle rent has increased by 25% to 30% due to rising expenses, which has resulted in a decrease of 30% to 35% in our Business.

Drivers in the industry, like Ashfaq Anjum, face their own challenges. “We earn RS20,000 for RS25,000 per month, with an additional commission of RS1,000 per trip. If a client tip us is a bonus. In addition to this we will receive no benefits or incentives,” he said Express Pakinomist.

Sindh Transport Department has acknowledged the lack of regulation in the Rent-A-Car business. Officials have promised to formulate a policy of registering vehicle rental companies and standardizing prices.

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