RTA adds a surcharge to ride-hailing app services

Careem customers will face a AED3 surcharge when using the service in the region

Tags: Careem (www.careem.com)Roads and Transport AuthorityUber (www.uber.com/)
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RTA adds a surcharge to ride-hailing app services In October 2016, Careem struck a deal with the RTA where by all Dubai taxis will be available on the Careem app
By  Aasha Bodhani Published  January 23, 2017

The Roads and Transport Authority (RTA) has introduced a AED3 surcharge on journeys booked through a ride-hailing smartphone app.

Customers registered to Careem's services received an email which stated: "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.

"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."

In October 2016, Careem struck a deal with the RTA where by all Dubai taxis will be available on the Careem app to help reduce congestion and the cost of transport in Dubai.

Uber, which is another ride-hailing app service, has not yet confirmed whether the surcharge applies, but a spokesperson revealed that: "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.

"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."

Careem charges will be effective from 23 January onwards.

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