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Baku traffic jams hit car rental business as demand falls

Bakıda tıxac avtomobil icarəsi biznesini də vurdu: müştərilər maşın götürmək istəmir

Car rental remains popular for people who do not use a vehicle daily or travel outside the city for several days, but congestion is weakening demand in Baku.

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Traffic congestion in Baku is no longer causing only daily delays for drivers and passengers. Congestion in the city is also affecting the car rental business. Rental companies say demand for vehicles, particularly during this summer season, has declined compared with previous years.

“Operative Information Center-OMM” reports that car rental is a widely used service for people who do not use a vehicle every day or travel outside the city for several days. The sector has also developed in Azerbaijan in recent years, with companies offering customers both economy and premium vehicles.

However, rental companies say the market has recently experienced stagnation. Both local customers and foreign tourists are reportedly showing less interest in renting cars than before.

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Summer season falls short of expectations

A representative of one rental company said business activity during the summer season was considerably lower than in previous years.

“Our season is in the summer. This summer, business was practically not like it was during previous seasons. It was very weak.”

Companies say their main problem is that customers do not want to drive in the city.

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Tourists also reluctant to drive in Baku

According to rental operators, the same trend is being observed among foreign tourists. Visitors to Azerbaijan mainly rent cars for trips outside the city.

“When foreign visitors rent a car, they do not want to drive in the city. They rent one for two or three days only when they travel to the regions. They do not want to drive inside the city.”

Rental companies believe one of the main factors behind this trend is traffic congestion in Baku. The possibility of spending long periods in traffic makes car rental a less attractive option for some customers.

Companies turn to discounts and long-term rentals

As the summer season ends, car rental companies are introducing various campaigns and discounts to attract customers.

At the same time, companies that do not limit their business to daily rentals are placing greater emphasis on long-term and monthly rental arrangements.

According to rental operator Ayten Mukhtarova, the nature of customer demand also changes from September. While cars are in greater demand on weekdays during the summer months, weekend demand is expected to rise during the autumn and winter period.

“September is practically the initial stage of the month when the season closes. But another season also begins after that. In the winter months, there will again be a need for vehicles on weekends.”

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The issue of a “second car” is also on the agenda

According to the rental operator, some people have both a personal vehicle and a second car provided by the company where they work. This is cited as one factor contributing to the growing number of vehicles in the city and worsening road congestion.

Nevertheless, car rental companies believe the need for this service cannot disappear completely. Rental services remain relevant particularly for trips outside the city, business travel and people who need a vehicle for a specific period.

Expert: “Traffic jams have become an economic problem”

Experts are also approaching the issue from a broader perspective. They say traffic congestion in Baku is not only a mobility challenge for the car rental business but also an economic issue.

People mainly rent cars for convenience, freedom of movement and time savings. However, if a vehicle remains stuck in traffic for hours, these advantages are significantly reduced.

According to the expert, short-term car rental within the city may therefore appear less efficient than before for tourists and other customers.

“Traffic jams in Baku have already become not simply a road problem but an economic problem for companies engaged in the car rental business. If a customer rented a car for one day to gain time and freedom of movement, congestion reduces that efficiency.”

Traffic congestion has formed on several roads in Baku

Traffic also increases companies’ costs

The impact of congestion is not limited to a decline in the number of customers. Vehicles remaining in traffic for long periods increase fuel consumption.

In addition, more intensive and prolonged use of vehicles may raise maintenance and repair costs. This means additional expenses for rental companies.

As a result, traffic congestion in Baku is contributing both to lower demand for car rentals and to higher operating costs for companies. The trend is encouraging rental operators to focus on flexible pricing, longer rental periods and trips beyond the city, while the service continues to serve customers who need temporary access to a vehicle.

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