Coronavirus pandemic hit car rental firms

Coronavirus pandemic hit car rental firms

access_time2020-07-14 11:00:28

The coronavirus pandemic has dealt  severe blow to car rental firms, which stopped working.

According to the founder of Auto Plus Giorgi Arbolishvili, this business is focused  on foreign tourists as local citizens do not almost use its services.

“During the crisis, everyone is trying to spend less and buys only the most necessary. Car rental in our company costs from GEL 80 to 130 per day depending on the model that is expensive for the locals. In previous years, locals more actively rented cars, but now everyone is trying to save, ”he explains.

Arbolishvili notes that there are 15 cars in the company’s garage, and now they are all stopped. Auto Plus stopped working with insurance companies as  it has no money  to pay for insurance.


“Despite this, we are not going  to shut down, and we hope that soon  international tourist arrivals start to recover and we’ll be able to make money. This is a problem for the whole country that  depends on tourism, ” Director of the Auto Plus firm says.

Giorgi Gachitashvili, the founder of Lux Car Rent, says that his company is on the verge of bankruptcy, since he is paying interest on loans that makes  GEL 6,000 per month amid a lack of work.

“Our firm has 7 cars, 2 of them we were forced to sell,” he explains.

“We are not going to shut down but I can’t say what will happen in 3 months. Our business has not yet received any assistance  from the state. In the current situation the biggest support for our business is to delay the repayment of loans,” Giorgi Gachitashvili points out.


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