Illegal operators undermining rental car industry, says association

The Fiji Rental Car Association has raised serious concerns about the growing number of illegal operators in the country, warning that the issue is undermining legitimate businesses and exposing gaps in regulation.

Association treasurer Ahmed Faruk said the industry had changed significantly, with unlicensed private vehicle owners increasingly entering the rental market.

“It’s not how it used to be,” Mr Faruk said. “We have a lot of illegal operators poaching our customers. They are operating without being bound by regulations, while we are taxpayers who must meet rules set by the Land Transport Authority and the Government.”

Mr Faruk highlighted what he described as an uneven playing field, noting that private vehicle operators often avoid taxes and regulatory requirements, including proper lease agreements and designated operating areas.

He added that such operators also benefit from easier access to insurance coverage, an area where licensed rental companies continue to face challenges.

Another key concern raised by the association is the current vehicle age limit imposed on rental cars. Mr Faruk argued that vehicles should instead be assessed on their condition rather than age alone.

“There are cars less than three years old that are already in poor condition, while others that are seven or eight years old are still well maintained,” he said. “We want authorities to review this on a case-by-case basis.”

Membership within the association has grown to more than 120 this year.

However, Mr Faruk is urging authorities to make membership mandatory for all licensed rental operators to ensure unified representation.

“We want one voice that the Government can hear,” he said.