Car Rental: The solution for many who don’t own cars
Aug 26, 2010
Car rentals, which like pizza, cappuccino and latte, were a preserve for the expatriates and Ugandans with accumulated air miles, are now a hit with indigenous Ugandans who want to identify as cool.
By Alex Balimwikungu
Car rentals, which like pizza, cappuccino and latte, were a preserve for the expatriates and Ugandans with accumulated air miles, are now a hit with indigenous Ugandans who want to identify as cool.
As such, the car rental industry has hit unprecedented heights and the service providers can never be over emphasized.
For the average ‘cool’ Ugandan, travelling in a car that takes you from point A to point B, counts for nothing.
A wedding, a business trip, a beach outing, or an upcountry journey will see one use different cars, which lends credence to car rental services.
What are the car rental options?
Generally, there are four rental options available with the self drive, chauffeur driven, unlimited mileage and one way rental which is the most common.
People’s options depend on preferences and prevailing conditions. “If one is uncomfortable when someone else is on the wheel, self drive is approved. It also applies if one needs a higher degree of privacy,†says Christine Barungi, a travel consultant with Extreme Safaris Limited.
Most cars plying the business in Uganda include the Corona, Corolla and Caldina, Land Cruisers and Pajeros, 4X4 Omni buses, which include 7-seater, 10-seaters, 12-seaters, Costa buses (25 and 28 seaters) as well as coach buses (60 seater capacity).
Brisk but bloated business
“It is brisk business, which has come with its own downside. Suddenly, everyone with a car wants to rent it out. This has bloated the image of the industry,†Barungi observes.
She notes that a car doing rental services must have a tourist agent’s license, which is usually given after one formally applies to the licensing board in the Ministry of Trade and Industry.
After inspection to gauge roadworthiness, one pays for a license, which usually covers one year. The payment for the license depends on the seating capacity and type of car. “License fees paid for a duration of one year, are sh40,000 (small cars), sh100,000 (coaster) and sh150,000 for a bus,†she explains.
Cheap prices, poor experiences
Like it is with any competitive business, there is a tendency by shrewd businessmen to undercut.
As Asif Chaudhry, the MD Hertz Rent- A- Car, argues, cheap things are not good and good things are not cheap. He says briefcase companies have disappointed most clients, some of whom have inevitably had to run back to the multinationals.
“No self respecting company would refer to themselves as cheap. There fore, no company can claim to offer cheap car rentals unless they are offering old cars with an inferior service. Offering inferior cars is counter productive and creates reliability problems. â€
A survey among international car rental companies shows that they charge a relatively high rate, usually in dollars, compared to rentals owned by locals.
Some of them charge $100 (sh225,000) for a Toyota Rav 4 or Nissan Patrol per day for a minimum three-day hire package.
The package also includes the provision of having a professional, courteous and English speaking driver between 8:00am – 6:00pm. However, you are supposed to pay for your fuel, parking and airport transfers. In some cases, you pay the driver’s bonuses.
Others charge according to mileage and give 150 free kilometres per day.
Any additional kilometer attracts extra cost of $0.4 (sh1,000).
Their vehicles are insured againstThird party only and in the event of an accident the client is limited by agreement to be liable to the first $500 (Sh1.2m) of any damage sustained by the vehicle during the hire period.
The 4WD vehicles have Full Comprehensive Insurance coverage and the client is liable to the first $750 (sh1.7m) of any damage sustained by the vehicle during the hire period.
The big rentals have since introduced user-friendly policies like delivering and collecting cars free of charge, within the city during normal office hours and “a rent- it here, leave-it thereâ€, policy especially for those who drive to the airport to fly out of the country.
Jimmy Ssesanga, who runs a briefcase car rental company with a ‘fleet’ of two cars, says claims by the international companies that cheap is poor, are defeatist.
“They hide under their international status to make Ugandans pay twice as much. The average Ugandan is price conscious. We have quality cars and also offer good service at a good price.†he argues.
He charges between sh80,000-sh100,000 for an Ipsum for a whole day!
He says all that matters is whether a car hire provides a higher degree of privacy, security and independence.
“I would not mind if someone who works from 8:00am-5:00pm, hires out his car between those hours to make a little more money,†Ssesanga, an assistant lecturer at MUBS, says.
Job Sewankambo who frequently rents cars says they are most private option available.
“It is hard to trust anyone, considering there are spies planted everywhere in town. There is no way you can plan a clandestine move or enjoy a private retreat with a driver by your side,†he says.
Another person who regularly rents cars argues that it helps him enhance his status because he can pose as the car owner rather than use the cabs which are marked.
Car rental companies offer a wide range of vehicles from classic cars to sedans and SUVs.
These vehicles are usually new, clean and well-maintained providing high comfort and convenience.
If one books or places their reservation on the car rental website, they have an advantage of special promotions like free upgrades and unlimited mileage.
Multinational car rentals are known to partner with some travel agencies and provide special vacation or holiday packages at discounted rates which would already include airfare and lodging.
This saves money and allows one to spend more on food, entertainment or shopping.
The car rentals also reward individuals who frequently use their services with membership cards which entitle them to certain priviledges and discounts.
Car rentals, which like pizza, cappuccino and latte, were a preserve for the expatriates and Ugandans with accumulated air miles, are now a hit with indigenous Ugandans who want to identify as cool.
As such, the car rental industry has hit unprecedented heights and the service providers can never be over emphasized.
For the average ‘cool’ Ugandan, travelling in a car that takes you from point A to point B, counts for nothing.
A wedding, a business trip, a beach outing, or an upcountry journey will see one use different cars, which lends credence to car rental services.
What are the car rental options?
Generally, there are four rental options available with the self drive, chauffeur driven, unlimited mileage and one way rental which is the most common.
People’s options depend on preferences and prevailing conditions. “If one is uncomfortable when someone else is on the wheel, self drive is approved. It also applies if one needs a higher degree of privacy,†says Christine Barungi, a travel consultant with Extreme Safaris Limited.
Most cars plying the business in Uganda include the Corona, Corolla and Caldina, Land Cruisers and Pajeros, 4X4 Omni buses, which include 7-seater, 10-seaters, 12-seaters, Costa buses (25 and 28 seaters) as well as coach buses (60 seater capacity).
Brisk but bloated business
“It is brisk business, which has come with its own downside. Suddenly, everyone with a car wants to rent it out. This has bloated the image of the industry,†Barungi observes.
She notes that a car doing rental services must have a tourist agent’s license, which is usually given after one formally applies to the licensing board in the Ministry of Trade and Industry.
After inspection to gauge roadworthiness, one pays for a license, which usually covers one year. The payment for the license depends on the seating capacity and type of car. “License fees paid for a duration of one year, are sh40,000 (small cars), sh100,000 (coaster) and sh150,000 for a bus,†she explains.
Cheap prices, poor experiences
Like it is with any competitive business, there is a tendency by shrewd businessmen to undercut.
As Asif Chaudhry, the MD Hertz Rent- A- Car, argues, cheap things are not good and good things are not cheap. He says briefcase companies have disappointed most clients, some of whom have inevitably had to run back to the multinationals.
“No self respecting company would refer to themselves as cheap. There fore, no company can claim to offer cheap car rentals unless they are offering old cars with an inferior service. Offering inferior cars is counter productive and creates reliability problems. â€
A survey among international car rental companies shows that they charge a relatively high rate, usually in dollars, compared to rentals owned by locals.
Some of them charge $100 (sh225,000) for a Toyota Rav 4 or Nissan Patrol per day for a minimum three-day hire package.
The package also includes the provision of having a professional, courteous and English speaking driver between 8:00am – 6:00pm. However, you are supposed to pay for your fuel, parking and airport transfers. In some cases, you pay the driver’s bonuses.
Others charge according to mileage and give 150 free kilometres per day.
Any additional kilometer attracts extra cost of $0.4 (sh1,000).
Their vehicles are insured againstThird party only and in the event of an accident the client is limited by agreement to be liable to the first $500 (Sh1.2m) of any damage sustained by the vehicle during the hire period.
The 4WD vehicles have Full Comprehensive Insurance coverage and the client is liable to the first $750 (sh1.7m) of any damage sustained by the vehicle during the hire period.
The big rentals have since introduced user-friendly policies like delivering and collecting cars free of charge, within the city during normal office hours and “a rent- it here, leave-it thereâ€, policy especially for those who drive to the airport to fly out of the country.
Jimmy Ssesanga, who runs a briefcase car rental company with a ‘fleet’ of two cars, says claims by the international companies that cheap is poor, are defeatist.
“They hide under their international status to make Ugandans pay twice as much. The average Ugandan is price conscious. We have quality cars and also offer good service at a good price.†he argues.
He charges between sh80,000-sh100,000 for an Ipsum for a whole day!
He says all that matters is whether a car hire provides a higher degree of privacy, security and independence.
“I would not mind if someone who works from 8:00am-5:00pm, hires out his car between those hours to make a little more money,†Ssesanga, an assistant lecturer at MUBS, says.
Job Sewankambo who frequently rents cars says they are most private option available.
“It is hard to trust anyone, considering there are spies planted everywhere in town. There is no way you can plan a clandestine move or enjoy a private retreat with a driver by your side,†he says.
Another person who regularly rents cars argues that it helps him enhance his status because he can pose as the car owner rather than use the cabs which are marked.
Car rental companies offer a wide range of vehicles from classic cars to sedans and SUVs.
These vehicles are usually new, clean and well-maintained providing high comfort and convenience.
If one books or places their reservation on the car rental website, they have an advantage of special promotions like free upgrades and unlimited mileage.
Multinational car rentals are known to partner with some travel agencies and provide special vacation or holiday packages at discounted rates which would already include airfare and lodging.
This saves money and allows one to spend more on food, entertainment or shopping.
The car rentals also reward individuals who frequently use their services with membership cards which entitle them to certain priviledges and discounts.