How Covid-19 Has Affected Car Hire – Effects of Corona Virus on Travel Industry
Car hire or car rental sector like many other sectors in Uganda and the world at large has suffered a blow due to the devastating effects of COVID-19, the deadliest disease whose impacts have been felt worldwide. Presently, Uganda has recorded about 616 cases of COVID-19 with about 96 recoveries however; no death cases have been recorded from this pandemic.
Uganda in particular, nearly all businesses came to stand still due to total lockdown in order to slow the wide spread of this deadliest disease. As a result, only some government officials and section of essential workers were allowed to get out of their houses. Considering the above fact and provided COVID-19 crisis still exists then coupled by the lockdown, no one may need a rent a car which they can’t even drive.
Car hire visitors like other travelers on Uganda safari and those on plan to go self-drive in the pearl of Africa have been heavily affected since there is no entry or exit. No tourist is allowed to enter or leave Uganda because they can’t use Ugandan roads following the outbreak of COVID-19 pandemic. This also means there are no prospective car hire Uganda clients.
The outbreak of COVID-19 led to closure of tour companies, car rental companies/agencies a latter which may even push some to a potential bankruptcy filing. Companies were forced to park their safari vehicles or car rentals yet some of the tour operators or car hire companies who have invested in travel and tour business have been operating on loans which they hoped to pay back something that may not see some of them make a come-back.
Since there is no business for car hire agencies, possibility to purchase more isn’t there because there is no demand. Of which, the rental fleet are substantial market for those who buy and sell cars. Some potential buyers in the car hire sector have been forced to cancel their orders. Similarly, the potential car hire clients have also been forced to cancel their booking for car rental in most car hire companies in Uganda.
There is also possibility that the cost of cars will increase a bit post COVID-19. This can be attributed to the fact that most people currently have money which they spend mainly on food and car hire may not be a priority. On the other hand, those who still have some money may have to pay a little more on car hire considering the ever-rising dollar effect against the shilling.