This archive report was first published on 16 June 2020.
As the COVID-19 pandemic continues to spread, the demand for corporate transport services within the Nairobi Metropolitan region has seen a significant increase.
According to industry players, this surge in demand can be attributed to the government's directives on reducing the capacity of public transport and corporate concerns for employee safety.
Pride Drive, a local corporate car hire company, has witnessed a notable increase in corporate car hire requests to transport workers from their places of work to their residences and back.
"The government's response to the COVID-19 pandemic, including social distancing measures, has had a significant impact on our business," said Imtiaz Harunani, Pride Drive General Manager. "We have seen a 20 percent increase in staff transportation interests by major Kenyan corporates, especially for buses and vans."
While all modes of transport are suffering losses due to their limited operability during this time, car rental services are expected to experience a post-coronavirus boom, with industry players anticipating increased demand as commuters turn away from public transport.
"Interest in corporate transport is set to rise as corporates will be looking for alternatives to packed public transport services in fear of coronavirus spread," said Mr. Imtiaz.
However, the industry has seen a drop in the uptake of luxury vehicles, which were mostly hired by foreign business people who intended to stay in the country for a few days.
"Upon the government lifting the lockdown and other movement restrictions, we're anticipating increased demand for car hire of luxurious cars by people traveling to other counties for work or leisure and also within the Nairobi Metropolitan," said Billy Muga, Pride Drive Sales Manager.
Car hire investors are anticipating increased demand for cars in middle to high-end estates, where many residents don't own cars, due to their reluctance to use public transport.
"We're already seeing an increase of 20 percent in inquiries for car hire over the last month," said Imtiaz. "People can still move within the Metropolitan areas, especially for a drive or weekend getaway, and most will prefer to use a luxurious car."
