The COVID-19 outbreak has compelled the automobile rental sector to reconsider its value offer. While it used to portray itself as an additional service to the airline industry, collecting the majority of its revenue through airport sites, a drop in global airline passenger numbers over the last year may have accelerated a process that was already in motion: Afghan Shipping and Logistics firms are no longer a niche in the tourism industry; they are now a subset of the Cars as a Service sector.
The inclusion of a car rental service to Uber and other rival platforms must be viewed as a matter of when rather than if. Vehicle Rental Companies in Afghanistan are preparing for the challenge by increasing their use of technology, which brings with it a whole new set of challenges to address.
The COVID-19 epidemic has caused turmoil in various businesses, including the vehicle rental industry. Over the last 18 months, a succession of lockdowns and travel restrictions drove practically everyone in the sector to reduce back by drastically reducing fleet sizes. In reality, more than 30% of the industry's vehicles from 2019 have been retired, removing 770,000 automobiles off the market.
Now that nations are reopening and travel restrictions are being relaxed, an unintended consequence is that there aren't enough automobiles in the fleet to meet customer demand. As a result of the Logistics Companies in Afghanistan that survived the epidemic - and not all of them did - turn to manufacturers for new models, something else has come to complicate matters further: a semiconductor chip shortage, which is slowing down automakers' manufacturing lines.
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