With a strong tourist market and a relatively large transient expat population, Dubai is an ideal market to set up a car rental business.
Dubai is home to major car rental companies such as Avis, Budget, Herts, Dollar, Enterprise, amongst others. Nevertheless, this has not hampered the growth of small to medium local firms. The UAE government has massively expanded the road network throughout the country in the past decade.
While public transport is available in key metropolitan areas, large portions of the country and even Dubai itself can only be explored by car. While a taxi network does exist in all Emirates, frequent use is costlier than leasing a car.
Businesses of all sizes find it more convenient to lease cars from car rental firms rather than establish their fleet. Many car rental firms concentrate their marketing efforts to target businesses rather than consumers with very profitable results.
With a small fleet and an understanding of the core client base, anyone can launch a profitable car rental business.
Car Rental Business Location and Fleet
To set up a car rental business, you will need a physical office; this site will need to be a minimum of 150 meters squared.
As you will most likely have a small fleet on-site, you should select a site with ample parking. Many car rental businesses cluster around the airport or other central parts of town to make it convenient for their clients.
What type of vehicles you select to have as a part of your fleet depends on the type of clientele that you are trying to acquire. You can get high-end luxury vehicles if your aim is to target tourists. You can also stick to conventional, affordable vehicles which corporate clients prefer. Either way, keep in mind that the vehicle fleet should not be older than two years.
You should also sign up for a service agreement with a reputable maintenance shop to ensure that your cars are in top shape for your clientele. It’s also recommended that you research fleet management systems that facilitate GPS tracking and inventory control. You wouldn’t want to lose track of your assets which can happen in a high churn business. Equally, you want a system that permits potential clients to see what cars are available online on any given day to maximize booking potential.
Proper insurance coverage for your fleet is mandatory. With your fleet on the road 24/7, accidents are part of the business and making sure you can restore your fleet swiftly is critical to your business success.
Car Rental License
Most car rental firms choose to set up a business with a local license, as free zones don’t generally issue such licenses.
There are some exceptions which our consultants can tell you about. To get approval for your license there are certain conditions that must be met to acquire a no-objection certificate from the Road & Transport Authority (RTA).
Our consultants are familiar with all the documentation and requirements from the RTA. Therefore its recommended that you have a free consultation. Once you obtain your business license, please keep in mind that you are subject to inspection by the RTA at any time. Therefore you need to ensure that your maintenance and bookkeeping is up to the necessary standard.
In summary, running a car rental business in Dubai can be a very successful venture. Having experts by your side who are familiar with all the requirements to launch your firm and keep it on the right side of the law will provide you with the peace of mind that you require.
Speak to us today about how we can help you launch your dream business in Dubai.
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