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![video link button](/Content/en/images/attachement-icon.jpg)
Logo of Dar Almarkabah for Renting Cars Co.
Dar Almarkabah for Renting Cars Co. witnessed mixed demand levels, as demand increased 51% for driverless car rentals, reflecting customers' preference for flexibility and mobility control, CEO Saleh Al Zahrani told Argaam. Demand from private and public sectors also rose by 58% and 41.6% respectively.
Al Zahrani also indicated that the Central and Western Provinces, which saw a significant leap in economic and tourism activities, witnessed the highest demand for car rental services during the first half of 2024. Thus, the company had to boost foothold in these regions, while enhancing competitiveness and catering to customer needs.
Commenting on Dar Almarkabah’s H1 2024 results, Al Zahrani attributed the first-half loss of SAR 74,000 to realizing expenses related to expanding the company’s fleet by 33%, compared to the same period of the previous year. This is in addition to increased vehicle insurance costs, financing costs, and administrative expenses.
The company recorded a positive comprehensive income of SAR 293,000 during the same period, along with a 15.9% year-on-year (YoY) revenue hike.
“We are strategically committed to improve operations as well as financial performance and enhance sustainable growth in the second half of 2024,” said Al Zahrani.
Dar Almarkabah's network comprised nine branches by the end of the first half of 2024. Six branches are located in the Central Province, three others in the Western Province, and one in the Eastern Province.
The transportation sector faced several challenges and economic pressures, but there are positive signs for a sector recovery and stronger demand for flexible and integrated transportation services. Additionally, innovations in sustainable transportation shall provide significant opportunities to improve performance.
Al Zahrani expects, based on market trends, the second half of 2024 to see improved demand by an estimated 15-20%.
According to data available on Argaam, the company swung to a net loss of SAR 74,000 by the end of the first half of 2024, versus a net profit of SAR 3.3 million during the same period in 2023.
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