Car renting app platforms have apparently impacted the business of car travel agencies rather significantly in Coimbatore city. Some of the travel agencies are learnt to have approached the Transport Department seeking intervention.
According to a senior official, the department has taken cognisance of the complaints and is keeping a watch. Legally, a car owner cannot rent out any personal vehicle. Renting private vehicles for money or other benefits is a punishable offence under the Motor Vehicle Act, 1988, a senior official said.
The Transport Department is, however, unable to keep a tab on personal cars rented out online through the app platforms. The apps connect hosts with the guests enabling the latter to choose cars suiting their affordability and comfort. In most cases, customers looking for privacy during family visits to tourist destinations avail themselves of the utility of the car-renting apps, going by the pattern of booking.
The customers using the car-renting app submit their driving licence and ID proof (Aadhaar, passport, PAN) for booking, alongside paying a refundable security. The car rental for a day, in general, comes with a distance limit of 300 km, similar to the pattern followed by the travel agencies.
The rent for the cars range from â‚ą1,500 for basic models to â‚ą10,000 per day for high-end cars. The renting app commission is up to 40 percent, for providing the marketplace, security and support. The platform manages bookings, insurance.
“The travel agencies, on the other hand, meet costs under several overheads including the repayments in instalments for the fleet of cars purchased on credit, rent for physical parking space, and salaries for drivers, and office staff,” said a proprietor of a car travel agency preferring anonymity.
According to officials, the car-rental apps become visible only in the event of accidents, when the cases are registered by the police and the issue of insurance crops up.
Penalties to the extent of â‚ą15,000 could be levied on violators for using a vehicle without a permit. The Regional Transport Officers are also empowered to detain and impound such vehicles, officials cautioned.
Published – December 19, 2025 07:59 pm IST
