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Udrive service delayed due to "regulatory and administrative issues"
A new mobile phone application allowing users to rent a car by the minute, which was launched in Dubai earlier this month, has been put on hold due to 'regulatory and administrative issues'.
German-owned firm U Drive Rent a Car LLC launched the Udrive smartphone application earlier this month, offering Dubai residents the chance to rent one of their cars for 50 fils ($0.27) per minute.
However, the firm, which was set up in Dubai in 2014, announced at the weekend it had put the minute-by-minute service on hold.
"We would like to inform you that at the time being, U Drive can offer car-rental service on a daily basis only, the previously offered service per-minute car rental scheme is currently put on hold until certain logistical, regulatory, and administrative issues are resolved," the firm said in a statement on its website.
"We are working very closely with the Road and Transport Authority (RTA) to offer this service in a way that is compatible with the rules and regulations governing car-rental activity in Dubai. We are sorry for any inconvenience this might have caused. For customers who have registered with us, we will be refunding your membership fees should you wish," it added.
The firm had compiled a fleet of 50 rental cars, with plans to expand to 100 vehicles, according to a report by Khaleej Times newspaper last week. The service offered a minute-by-minute rate which included insurance, petrol and parking fees.
Users were able to book a journey on their phone and locate a car within a five or ten minute walk from their current location.
© Zawya 2016
