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U.S. says it is considering shutting down entire auto rental companies

U.S. says it is considering shutting down entire auto rental companies

A U.N. panel on Tuesday criticized the auto rental industry for allowing people to rent cars at inflated rates, calling on governments and car rental companies to shut down rental companies that charge high rates.

The U.K. panel, which is led by New York City’s finance chief, Richard Branson, said rental companies, who charge around $150 per hour for an average rental car, “have created a perverse incentive for consumers to use these vehicles, and not for consumers, to find alternative vehicles that are actually more affordable.”

It said car rental firms were failing to ensure that their vehicles meet the same standards of quality as their car rental counterparts.

“The industry is failing consumers, but also the consumers of the world, to make the necessary changes that will enable us to reduce the costs of renting cars in the future,” the panel said in a statement.

The panel is expected to release its report on Tuesday.

Last week, the U.A.E. and South Africa, which are among the world’s most expensive countries to rent a car, announced that they would begin to impose measures to stop rental companies from charging higher rates for vehicles, including for rental cars.

More: A spokesperson for the U!


Economic and Social Commission for Western Asia said the U., as a global leader, has a responsibility to ensure affordable and quality rental cars and services.

“We need to ensure we have the capacity to maintain our position as an affordable and high-quality rental market, which will mean ensuring that every one of our residents, regardless of their country of origin, has the option of renting a car with a low rental rate,” the spokesperson said in an email.

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