Demand for rental cars in the UAE is surging by up to 40% during the back-to-school season. This rise is partly due to new families relocating to the country and the increasing cost of school transportation.
“Expat families often move in before the academic year begins, boosting transportation needs as they establish new routines,” said Soham Shah, CEO and Founder of SelfDrive Mobility. “The rapid increase in schools in the region contributes to the demand, with more parents, students, and staff needing mobility options. Teachers frequently arrive during this time, looking for jobs, which increases short-term rental needs.”
Anudeep Raghuthaman, Head of Sales and Marketing at Dollar Car Rental, noted a typical “30 to 40% increase in rentals during this period” due to multiple factors. “Renting a vehicle offers households a convenient method to handle daily tasks like school drop-offs, extracurricular activities, and weekend errands,” he stated. “Short-term rentals provide flexibility and can be more cost-effective, leading rental companies to offer targeted promotions and extended-term packages.”
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Most UAE students will return to school on Monday, August 25, after nearly two months of summer break. Recently, the Ministry of Education announced its preparations to welcome back over one million students. Federal government agencies have declared flexible work hours on Monday, allowing employees to accompany their children to school.
Suhale Showkat, Head of Retail at Thrifty UAE, noted a preference for larger vehicles during this time. “Families and groups often choose SUVs or minivans to facilitate carpooling, saving time and money while reducing vehicle wear,” he mentioned, adding that companies typically expand their fleet availability by “20-30%” during this period to meet demand.
New schedules, costs
With the new academic year, many parents face changes in schedules and routines, prompting the use of rental vehicles, according to Soham. “Families are opting for rentals for flexibility and convenience during schedule changes,” he explained. “Rentals provide predictable costs, comprehensive coverage, and short-term commitments, perfect for the back-to-school season.”
Anudeep highlighted cost considerations influencing this decision. “School transport services like buses or private vans can be pricey, especially for families with multiple children,” he said. “Renting a car offers a more economical alternative, allowing parents to manage drop-offs and pick-ups themselves.”
Photo: Anudeep Raghuthaman
He added that temporary situations can also drive rentals when families “require short-term solutions” while waiting for vehicle delivery or repairs or during city transitions.
Taxi services also see high demand, with Careem reporting over 300,000 school rides facilitated last year alone. The service offers packages starting at Dh260 for 20 rides, shareable by up to three students from the same location, provided no extra stops are necessary.
Long-term rentals
Soham observed a “growing preference” for long-term rental options of 6 to 12 months among families, expats, and educators, especially during transitions like school term starts or relocations. “This trend aligns with broader leasing patterns,” he said.
Photo: Soham Shah
Suhale stated that long-term rentals offer a “significant” cost advantage. “Monthly rentals can save customers 10 to 30% over daily rates, often including benefits like insurance, maintenance, and roadside assistance,” he said.
Anudeep added that many parents and teachers “prefer the stability and convenience of having a vehicle available daily, as opposed to renting by the day or week, lowering their overall rental costs.”
With rising demand, companies are expanding their fleets, increasing both the number of vehicles and “diversifying their fleets” with a “5 to 10%” increase in luxury and hybrid vehicles to offer better choices to customers. The industry is also “embracing technology” with “flexible solutions like smart kiosks and centralized booking systems.”
