Taxi operator Careem has received approval from the authorities to launch its budget taxi in Abu Dhabi.
Taxi operator Careem can now launch its budget proposal in Abu Dhabi, similar to Dubai, after receiving appropriate approval from regulatory authorities.
Thus, Careem and its competitor Uber are no longer in an uncertain position, as it has been in recent years. Both services were launched in the capital in 2013, but suspended their operations in 2016 amid concerns from the transport authorities regarding their pricing policies that violate the rules for private car and limousine rentals.
While Uber is currently not working in Abu Dhabi, Careem has entered the market again, but without the most affordable offer on its price list.
"In a few weeks, we will be able to introduce a new, more affordable price offer for Careem services in Abu Dhabi," said Bassel Al Nahlawi, managing director of the company in the Gulf region.
All tariffs for private car rental operators in Abu Dhabi must be approved in advance by the authorities, but, according to the rules, private operators in Abu Dhabi must charge at least 40 dirhams ($ US 10.9) for the first 10 kilometers, followed by a rate of 4 dirhams ($ US 1) per kilometer. Abu Dhabi Careem Limo Service Rates currently meet these requirements.
Currently, the operator is not ready to provide accurate prices for the economy tariff in Abu Dhabi. The minimum fare for a standard taxi in Abu Dhabi is 12 dirhams ($ US3.2). In Dubai, the minimum fare is 16 dirhams ($ US4.35).
