Travel, Tourism & Hospitality

Lumi Rental, Saudi Post | SPL sign $11.2m leasing deal

Seera Group Holding’s car rental and leasing unit Lumi Rental has signed a leasing agreement worth SR42 million ($11.2 million) with Saudi Post | SPL, to supply a fleet of 855 vehicles including 795 commercial vans, 40 SUVs and 20 sedans.

The agreement further expands Lumi’s substantial footprint in Saudi Arabia’s rapidly growing vehicle leasing market, and consolidates its position as the vehicle provider of choice to some of the most important government agencies. The term of the agreement is effective from May 2023 for 34 months with the option to renew on mutual consent of both parties.

Lumi is a fast-growing market leader in the car rental and leasing sector with a unique full-service business model backed by state-of-the-art digital channels. The Company capitalizes on its strong relationships with major international car dealerships in Saudi Arabia including Abdul Latif Jameel Motors (Toyota), Almajdouie (Hyundai), Mohamed Yousuf Naghi Motors (BMW), Manahel International (Nissan), and others. Its well-established and agile rental and leasing model enables it to offer full fleet customization to corporate and government customers.

Syed Azfar Shakeel, CEO of Lumi, said: “We are delighted to announce this landmark agreement, adding to our strong portfolio of existing leasing contracts with prominent government entities. Our partnership with Saudi Post | SPL paves the way for Lumi to further enhance its market share in the local vehicle leasing sector, a more than SAR 1.8 billion market  that continues to grow. Our own growth in the segment has been aggressive, at a revenue CAGR of more than 50% since we commenced Leasing operations in 2019, and we intend to capitalise on this momentum.

“We are building one of the fastest growing car leasing and rental operations in Saudi Arabia with significant opportunities for future growth. Strategically, this agreement reinforces an already solid foundation for expanding our business across the government sector, allowing us to deliver on our aspiration to drive change in how people and organisations move around the Kingdom.”

Ahmed Aljarad, Chief Human Capital & Shared Service Officer at Saudi Post | SPL, said: “We are thrilled to announce our partnership with Lumi, a regional leader in car rentals and leasing. This stands as a significant milestone in our ongoing efforts to expand and optimize our logistics services.

“We are confident that this collaboration will bring numerous benefits to our customers and stakeholders, and at the heart of this partnership is our shared commitment to delivering convenience and superior customer service. We are excited about the growth opportunities that lie ahead, and we look forward to a fruitful collaboration with Lumi. The synergy of our combined expertise and resources will empower us to provide even more value to our customers. This strategic partnership represents a significant step towards realizing our goals as national logistics champion.” – TradeArabia News Service