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23 January 2017
By Shane McGinley
Dubai’s transport authority is to apply a surcharge to journeys booked through ride-hailing smartphone apps, operators in the emirate told Zawya on Monday.
Dubai-based Careem informed users by email on Sunday a new 3 dirham ($0.81) fee would be added to all fares by the Roads and Transport Authority (RTA) from Monday, January 23.
“The RTA has introduced new regulations for services like ours across Dubai- they are now applying a fee on all rides taken with app based ride hailing platforms,” it said in the email, which was confirmed by a Careem spokesperson.
“Effective 23 January 2017 at 00:00 Dubai time each trip you take with us originating in Dubai will carry a surcharge of AED 3. Careem will pass all of the surcharges onto the RTA… For Careem to continue to serve you here in Dubai, it's important for us to comply with RTA regulations,” it added.
Earlier this month, rival operator Uber signed an agreement with the RTA to study ways to try and cut congestion and the cost of transport in the emirate, Reuters reported. Read more here.
While Uber has not yet applied a surcharge to Dubai journeys booked through its app, it said in a statement it was currently studying the timeline and amount as part of its agreement with the RTA.
“We recently signed an agreement with the RTA and part of this partnership is a three month study, exclusive to Uber, that will look at launching an economy solution,” an Uber spokesperson said in a statement to Zawya.
“Fees are a necessary part of the new regulations, and the exact pricing will be determined during the study – our goal is to make the Uber product accessible to everyone from a both a rider and driver standpoint.”
Dubai announced last month that its 2017 budget will include expenditure of 47.3 billion dirhams and a deficit of 2.5 billion dirhams, which represents 0.6 percent of gross domestic product for the emirate.
Total spending is expected to increase 2.6 percent, compared to 2016. While total revenue is forecast to decline this year, income from government fees is forecast to increase 6 percent, it said in a statement. Government fees represent 76 percent of revenue. Read more here.
© Zawya 2017
By Shane McGinley
Dubai’s transport authority is to apply a surcharge to journeys booked through ride-hailing smartphone apps, operators in the emirate told Zawya on Monday.
Dubai-based Careem informed users by email on Sunday a new 3 dirham ($0.81) fee would be added to all fares by the Roads and Transport Authority (RTA) from Monday, January 23.
“The RTA has introduced new regulations for services like ours across Dubai- they are now applying a fee on all rides taken with app based ride hailing platforms,” it said in the email, which was confirmed by a Careem spokesperson.
“Effective 23 January 2017 at 00:00 Dubai time each trip you take with us originating in Dubai will carry a surcharge of AED 3. Careem will pass all of the surcharges onto the RTA… For Careem to continue to serve you here in Dubai, it's important for us to comply with RTA regulations,” it added.
Earlier this month, rival operator Uber signed an agreement with the RTA to study ways to try and cut congestion and the cost of transport in the emirate, Reuters reported. Read more here.
While Uber has not yet applied a surcharge to Dubai journeys booked through its app, it said in a statement it was currently studying the timeline and amount as part of its agreement with the RTA.
“We recently signed an agreement with the RTA and part of this partnership is a three month study, exclusive to Uber, that will look at launching an economy solution,” an Uber spokesperson said in a statement to Zawya.
“Fees are a necessary part of the new regulations, and the exact pricing will be determined during the study – our goal is to make the Uber product accessible to everyone from a both a rider and driver standpoint.”
Dubai announced last month that its 2017 budget will include expenditure of 47.3 billion dirhams and a deficit of 2.5 billion dirhams, which represents 0.6 percent of gross domestic product for the emirate.
Total spending is expected to increase 2.6 percent, compared to 2016. While total revenue is forecast to decline this year, income from government fees is forecast to increase 6 percent, it said in a statement. Government fees represent 76 percent of revenue. Read more here.
© Zawya 2017
