26 July 2016
RIYADH: Three government agencies -- the ministries of Transportation, Labor and Social Development, and Interior -- are working on establishing a company to organize the work of taxi companies in the Kingdom.

The regulation of taxi companies will soon be transferred to the jurisdiction of the Public Transportation Authority, rather than the Ministry of Transportation, sources reveal.

The Ministry of Transportation issued licenses to 11 taxi companies to operate in the Kingdom, as well as prepared 10 companies to work as transport operators (transpiration applications), in addition to the company, Careem. The ministry is currently receiving applications from companies wishing to work in this area in accordance with specified regulations.

The Ministry of Labor and Social Development also announced its plans to establish a company called Khidma (service) to nationalize jobs in the private and public taxi sector for Saudis, in coordination with several government agencies. This move will improve the quality of services and safety in the sector, the ministry said, as well as provide more than 22,000 jobs to young Saudis over five years.

The aim is to regulate the sector while simultaneously improving quality, providing a suitable work environment for Saudis, regulating prices, and setting appropriate work times for Saudi drivers.

After formal establishment, the company will work to coordinate efforts with agencies concerned with nationalizing Saudi jobs and improving quality in the taxi sector. The plan is to improve social attitudes and views among Saudis about jobs in the sector and boost competition for such jobs among Saudi youths.

Sources reveal that the authorities are also looking into fixing a minimum salary for Saudis in the sector at SR5,000.

The decsion comes after a series of initiatives to nationalize jobs undertaken by the ministry, including the Saudization of jobs in the telecommunications, and mobile phone maintenance and retail sector.

© Arab News 2016