Taxi Services Stopped , 32 Million Dinars Lossed In 3 Months For A Total Of 12,000 Taxi

Since mid-March and after the government’s decision to prevent mass transit as a preventive measure to avoid an outbreak of the Corona virus emerging as a temporary precaution, taxis (on call and mobile fare) are suffering in Kuwait.

According to what was reported by the source from the people of the market and the owners of companies working in this sector, most taxi and leasing companies did not benefit from the advantage of delaying the payment of installments for 6 months, as they do not finance their operations from banks, but from financing companies.

With the return plan approved by the government, the return of public transport will be within the fourth stage, with the following precautions in the social spacing, which will also limit the gains of “taxi” taxis after operation.

In the same context, some owners of mobile and on-demand taxi companies confirmed that taxi losses due to the complete cessation cost companies an estimated 32 million dinars in 3 months for a total of 12,000 “taxi” cars operating in the local market, and that there are approximately 420 offices ( From the owners of small projects) it stopped its business and lost during that period approximately 5 million dinars in operating returns for it from the installments, rents and salaries of employees incurred by the owners of those companies, which caused unprecedented losses in the sector.

Continuous losses

Initially, the owner of a group of taxi companies Abdulaziz Al-Mutairi said in a special statement to Al-Anbaa that stopping the work witnessed by taxis in Kuwait for a period of nearly 3 months cost the “taxi” companies about 32 million dinars, for a total of 12,000 “taxi” cars. Mobile and on demand »It operates in the local market, adding that the number of offices that operate in Kuwait and operate those cars amounts to 420 (from owners of small projects), all of them stopped their business since nearly mid-March and lost nearly 5 million during that period. Dinars from its operating returns.

Al-Mutairi added that the recent government’s decision to limit the period of the grant granted to “small business activities”, including taxis and on demand for a period of 3 years only, including paying a two-year interest during that short period is a difficult decision for the owners of companies, since that short period will lead to the reluctance of many Working in that profession, especially since the conditions after the current crisis will not return as they were before, which will make it difficult to operate and collect profits compared to before the crisis, pointing out that the period granted for payment must be reconsidered and up to approximately 8 years, in order to encourage entrepreneurs Small “mobile and on-demand fare” to continue their business.

Rents and obligations

In turn, the owner of a number of taxi companies Abdullah Al-Daihani asserted that the owners of the companies are now suffering monthly from the office’s rental obligations, in addition to the workers ’and workers’ delegates ’wages, as the rent, installments, and delegate’s fees per month reach 4 thousand dinars that the office demands without finding an income that reduces The burden of those expenses is on their shoulders, explaining that there are some offices that are still paying salaries to their employees, as taxi companies most of them own approximately 30 drivers working on cars, their salaries range between 250 and 300 dinars, and that 30 vehicles are the highest permissible ceiling for vehicles. Fare per company.

Al-Daihani pointed out that stopping the car is a big burden on the company, as it requires maintenance and greater attention compared to being operating regularly, calling on the government to consider the conditions of those companies to provide support to the owners of companies through good loans, pointing out that the decision to return in the third phase of cars The fare within the plan laid down by the Council of Ministers to return to normal life is limited to riding only one person, which will undoubtedly lead to lower operating returns for owners of companies and drivers alike

 

SOURCE : KWTOFFERINGS

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