Lumi inks commitment letter with Tahakom to provide vehicle rental services

Logo of Lumi Rental Co.

Lumi Rental Co. signed, on Nov. 20, a letter of commitment on award and supply with Saudi Technology and Security Comprehensive Control Company (Tahakom) to provide vehicle rental services, according to a statement to Tadawul.

The letter is based on the existing contract between both parties.

The new contract’s value exceeds 5% of the company’s total revenue as per audited financial statements for 2023, and based on Tahakom’s purchase orders, which will be issued on a regular basis.

The contract includes providing rental services for 1,189 vehicles, according to the delivery schedule outlined in the letter of commitment, and in accordance with the purchase orders that will be issued on a regular basis by Tahakom during the upcoming period.

The letter of commitment, along with the issued purchase orders, is subject to the terms and conditions of the framework agreement concluded between Lumi and Tahakom.

The rental period for each vehicle is determined according to the quantity schedule outlined in the letter of commitment and will expire upon the end of the framework agreement in mid-2027.

The letter of commitment will likely have a positive impact on financial statements starting Q1 2025.

Lumi reported nearly SAR 1.11 billion in revenue in 2023, data compiled with Argaam showed.